RITES on Friday (22 May) said it has signed an agreement for acquiring 24% stake in Indian Railway Stations Development Corporation (IRSDC) for Rs 48 crore with Rail Land Development Authority and IRCON International being the other equity partners.
Meanwhile, Rites said it has resumed operations at most of its offices and project sites after the coronavirus-induced lockdown restrictions were eased. During this lockdown period, apart from concluding negotiations for a major export deal with CFM Mozambique, it has been able to successfully deliver the 188 RKM Vijaypur-Pachore Road-Maksi section railway electrification project in Madhya Pradesh.
Rajeev Mehrotra, chairman & managing director, RITES said, "During the lockdown RITES continued to focus on key business deals like exports to Africa, signing of IRSDC shareholders' agreement etc and now we have hit the ground running as we resume most of our operations within the guidelines issued by the government. The company has implemented a Standard Operating Procedure (SOP) to guide its employees about precautions and safety measures at work," he said.
Besides its corporate office in Gurugram, project offices at Ahmedabad, Bhubaneswar, Secunderabad and inspection offices at Bhilai, Delhi, Chennai have also started operations.
Key project activities have been resumed at various sites like rail line doubling project at Goothy-Darmawaram, railway electrification work in Rajasthan, Project Monitoring Services at several rail connectivity works of power plants and coal mines, workshops modernization at Bikaner in Rajasthan, Kurdawadi in Maharashtra, Lumding in Assam, Sarla in Odisha, quality assurance work at various locations etc.
With these operations, RITES is estimated to have achieved more than half of its capacity and will scale up its activities with easing of more restrictions.
The announcement was made post trading hours on Friday, 22 May 2020. The NSE and BSE are closed today, 25 May 2020 on account of Ramzan Id or Eid-ul-Fitar.
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Rites' consolidated net profit jumped 10.5% to Rs 150.04 crore on a 15.9% increase in net sales to Rs 619.82 crore in Q3 December 2019 over Q3 December 2018.
RITES is a public sector enterprise (PSE) and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. As of 31 March 2020, the Government of India holds 72.02% stake in the company.
Shares of Rites declined 1.73% to end at Rs 223.85 on BSE on Friday, 22 May 2020. The stock dropped 11.83% in the past one month till Friday.
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