RITES shares in focus today as firm wins two contracts

Shares of RITES are in focus today after the firm announced two significant contracts win. RITES shares ended 0.29% lower at Rs 279.20 on Tuesday against the previous close of Rs 280 on BSE. Market cap of the firm stood at Rs 13,418 crore. 

The first contract, awarded by the African Rail Company, involves delivering and commissioning two fully overhauled Cape Gauge ALCO diesel-electric locomotives. These locomotives will be equipped with new components such as Cape Gauge Bogies and Traction Motors, and are set for deployment in Zimbabwe, Mozambique, and Botswana. The contract, valued at $3.6 million, includes warranty services and technical support for nine months. This strategic move not only strengthens RITES' presence in the African market but also showcases its capability in delivering high-quality railway solutions.

In a separate domestic venture, the RITES-Aryan joint venture received a Letter of Acceptance from South Western Railway for redeveloping Tumakuru Station. The project scope includes civil works, signal and telecommunication systems, and electrical services under an engineering, procurement, and construction agreement. RITES' share in this order is 937.81 crore, exclusive of GST. The contract is scheduled for completion within 540 days from the start date. This redevelopment project is expected to enhance the station's infrastructure significantly, providing better services to passengers and boosting local economic activities.

Additionally, RITES' recent contract with Gujarat Urban Development Company for third-party inspection services highlights its expanding portfolio in infrastructure development across regions. The company's involvement in diverse projects underscores its commitment to contributing to national and international infrastructure growth, positioning itself as a key player in the engineering sector.