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RITES Secures Revised Estimates for ₹531.77 Cr Project

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Synopsis:

RITES Ltd has received revised estimates of ₹531.77 crore for its railway electrification project in the Lumding-Badarpur section. This marks a significant increase from the initial ₹288.44 crore. The project aims to enhance Northeast Frontier Railway's electrification network.

RITES news today

State-owned RITES Ltd has received revised estimates for its railway electrification project in the Lumding-Badarpur (LMG-BPB) section of Northeast Frontier Railway (NFR). The revised cost for this turnkey project now stands at ₹531.77 crore, excluding GST. This marks a substantial increase from the original cost of ₹288.44 crore.

The electrification project, awarded on November 21, 2024, is part of the NFR’s ongoing infrastructure upgrade and modernisation efforts. The turnkey project includes complete electrification of the LMG-BPB section, spanning a critical part of the Lumding division.

Also read: HG Infra Secures ₹1,110 Crore Battery Storage Project

RITES LIMITED

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239.280.00 (0.00 %)

Updated - 24 April 2025
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Turnkey Project Scope And Revised Cost Details

The revised estimates cover not only the electrification works but also include RITES’ project management consultancy (PMC) services. As part of the turnkey approach, RITES will handle the design, supply, installation, testing, and commissioning of the electrification network.

The revised cost allocation underlines the increased scale and scope of the project, reflecting changes in material costs and labour dynamics. This project is a key milestone in India’s push for greener and more efficient railway infrastructure.

Also read: RVNL Bags ₹837.67 Crore Railway Project with SCPL JV

Financial Performance and Market Impact

RITES recently reported a 25% year-on-year decline in net profit for the latest quarter, amounting to ₹82.5 crore, down from ₹110.2 crore last year. The company’s revenue also fell by 7.1% to ₹541 crore, compared to ₹582.4 crore during the same period last year.

Other financial metrics include:

  • EBITDA: Declined 23% YoY to ₹106.4 crore

  • EBITDA margin: Narrowed to 19.7% from 23.6%

Despite this, the company’s shares saw a slight increase, closing at ₹275.20 on the BSE, up by ₹1.35 or 0.49%.

RITES Share Price Outlook

The revised project estimates are expected to strengthen RITES’ order book and contribute to long-term revenue growth. Investors remain optimistic about the company’s role in advancing railway electrification across India, reflecting positively on the RITES share price.

RITES’ revised ₹531.77 crore project cost highlights its pivotal role in enhancing railway electrification. As the company progresses with this critical infrastructure project, it continues to play a key part in India’s transportation modernisation initiatives.

Also read: Cochin Shipyard Partners with SLET for Jack-Up Rigs

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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