RITES surges 19% in 1 week on Rs 160 crore order win from Sri Lanka

The company has signed contract with Sri Lanka government for supply of two additional fully air-conditioned Diesel Multiple Unit (DMU) train sets.

Shares of RITES hit a new high of Rs 280, up 5 per cent on Thursday, surging 19 per cent in one week after the company signed Rs 160 crore contract with Sri Lanka government for supply of two additional fully air-conditioned Diesel Multiple Unit (DMU) train sets.

The stock of state-owned construction & engineering company was trading at its highest level since listing on July, 2018.

“RITES has signed the contract for supply of two additional fully air-conditioned Diesel Multiple Unit train sets, for USD 22.4 million (Rs 160 crore) with the Ministry of Transport and Civil Aviation, Government of Sri Lanka, on 17th September, 2019,” the company said in a regulatory filing.

The company has just completed supply of six sets of DMU coaches to Sri Lanka with state-of-the-art features and amenities, under a previous contract. The supply under the new contract will be done in FY 2020-21, it added.

As on June 30, 2019, RITES had healthy order book position of Rs 6,052 crore with Rs 473 crore gross order inflows during April-June quarter (Q1FY20). The management believes inflow pipeline in consultancy, exports and turnkey construction remains strong with rise in railway, roads and metro capex, semi high speed trains (Mumbai-Delhi) and rising railway infra needs in Bangladesh, Sri Lanka and Africa.

In view of the healthy order book and large investments taking place in infrastructure projects in India and overseas, the management is confident that the accelerated growth of the company will continue in years to come.

At 01:36 pm, RITES was trading 4 per cent higher at Rs 276 on the BSE, as compared to a 0.72 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 1.02 million equity shares changing hands on the NSE and BSE.