RITES a wholly owned subsidiary of Indian Railways and a Miniratna (Category-I) Public Sector Enterprise established under Ministry of Railways, Government of India, 1974. The Company is a leading multidisciplinary engineering & consultancy organization providing customized, competitive, diversified, and comprehensive, concept to commissioning services and integrated solutions in the transport and infrastructure sector in India and abroad. The company’s servicing industry covers transport and infrastructure sectors such as railways, highways, airports, ports, ropeways, urban transport, inland waterways and renewable energy etc. So far company has served clients in more than 55 countries across Asia, Africa, Latin America, South America and Middle East region and is presently serving in Sri Lanka, Bangladesh, Nepal, Mozambique, Mauritius and Botswana. Company’s domestic clientele includes various central and state government ministries, departments, instrumentalities as well as local government bodies and public sector undertaking such as Indian Railways, NTPC, Dedicated Freight Corridor Corporation of India Limited, High Speed Rail Corporation of India Limited, Public Works Department, DMRC, Steel Authority of India Limited, Rashtriya Ispat Nigam Limited, HPCL, Metro Link Express for Gandhinagar and Ahmedabad (MEGA) Company Limited, Indian Port Rail Corporation Limited, AAI, among others. Apart from that company has also worked with various large private sector corporations including L&T Metro Rail (Hyderabad) Limited, Kanti Bijlee Utpadan Nigam Limited (KBUNL), Titagrah Wagons Limited, AFCON Infrastructure Limited and many more. In FY23 company manufactured and delivered 25 customised coach, 4 customised train sets, 684 wagons and 67 Leased Locomotives. As on Q2of FY24 the Order book position of company stands at ₹5529cr and it has Secured 70+ orders worth ₹329 cr in recent quarter.

Fundamentals (FY22-23):

Financial Results:

Company’s Net Sales was Rs 582.36 crore in September 2023 down 11.64%, Quarterly Net Profit at Rs. 101.15 crore in September 2023 down 23.61% and EBITDA stands at Rs. 164.29 crore in September 2023 down 20.43% as compared to September 2022. Company’s EPS has decreased to Rs. 4.21 in September 2023 from Rs. 5.51 in September 2022.

Key Points:

1. RITES has entered a memorandum of understanding (MoU) with Meghalaya Industrial Development Corporation Ltd (MIDC) to develop multi-modal logistics projects in Meghalaya.
2. RITES Ltd has secured a tender for 10 diesel-electric locomotives from CFM Mozambique.
3. Rites has signed a memorandum of understanding (MoU) with Power Finance Corporation (PFC) to explore avenues of mutual collaboration for consultancy works in sectors such as Transport & Logistics, Energy, Water & Sanitation, Communication, Social and Commercial Infrastructure.
4. Company has also signed a Memorandum of Understanding (MoU) with Caminho De Ferro De Moçâmedes (CFM) Angola for cooperation in the development of Railways and related infrastructure, including the supply of rolling stock.
5. Company has signed a memorandum of understanding (MoU) with NHPC Limited, a premier hydropower generating company under the Ministry of Power, to collaborate on comprehensive Consultancy services for rail infrastructure facilities for NHPC’s hydropower projects.
6. Company has recently served as a Consultancy partner for the Shivamogga airport which includes hectares site area of 3050m x 45m runway length of 4223 square terminal building size with 300 per hour passenger handling capacity.
7. Company has also signed a memorandum of understanding (MoU) with NHPC Limited, a premier hydropower generating company under the Ministry of Power, to collaborate on comprehensive Consultancy services for rail infrastructure facilities for NHPC’s hydropower projects.
8. It has also signed a memorandum of understanding (MoU) with CARE Advisory Research and Training Ltd. (CART), a subsidiary of CARE Ratings Limited, to explore avenues of mutual collaboration in the consultancy domain, including ESG services, across sectors.
9. RITES Limited and INTECSA-INARSA, S.A.U a Public Limited Company of Madrid, Spain have entered a Memorandum of Understanding to achieve the effectiveness of synergy and co-operation on a long-term basis and to explore business interests in relation to the development and execution of projects in Republic of Guyana and Republic of Colombia.
10. Company has also signed a memorandum of understanding (MoU) with Meghalaya Industrial Development Corporation Ltd (MIDC) to develop multi-modal logistics projects in Meghalaya.
11. It has also entered into a memorandum of understanding (MoU) with Oil India Limited, the second largest National Oil Company, to develop Duliajan Township, Assam, as a Mini Smart City.

In last 3 Years the stock gave a return of 78.56% as compared to the rise of Sensex and Nifty in the same period.

Company has been working as a consultancy partner for many companies and derives majority of its earnings from consultancy services. It has a very large order book position backed by huge clientele of public and private companies. India’s infrastructural development is on a fast track backed by the ambitious vision of GOI for over all infrastructural development as well as development of India’s Railway infrastructure and RITES is well poised to enjoy continous stream through these developments in Railway and other infrastructural sectors. It is a debt free and dividend paying company. Considering company’s future growth prospects, good financial positions and large order book with huge clientele investors can invest in the company for long term period.

HET ZAVERI​

info@smartinvestment.in

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