RITES shares climb 4% on getting order from Ministry of Railways

NEW DELHI: Shares of RITES Ltd rallied over 4 per cent in morning trade on Mondayafter the company on Friday informed bourses that it has secured an additional work of Rs 294.67 crore from Ministry of Railways for doubling of Dharmavaram Penukunda rail lines (41.5 Kms) in South Western Railways.

Earlier, RITES was awarded doubling work for 90.2 Kms of Dharmavaram Penukunda rail lines in South Central Railways for a cost of Rs 666.38 crores from Ministry of Railways. The said work has been awarded to RITES on cost plus basis in which RITES will be paid fee at the rate of 8.5 per cent of the cost of work.

The scrip was trading 4.21 per cent up at Rs 272 at around 9.40 am (IST), while the BSE Sensex was down 185 points, or 0.48 per cent, at 38,204 at around the same time.

The Railway PSU RITES last month posted an 18.5 per cent increase in net profit at Rs 82 crore for the April-June quarter.

The company has recorded revenue of Rs 370 crore in the the first quarter of 2018-19, a flat growth from the corresponding period in 2017-18.

The order book of the company stood at Rs 5,517 crore as on July 30, 2018.