RITES rallies 5% on bagging Rs 414-cr IIT Bhubaneswar campus project

RITES shares rallied 5 percent in trade on February 26 after IIT Bhubaneswar appointed the company as the project management consultant for the development of a permanent campus in Odisha.

At 1.30pm, the RITES stock was trading higher at Rs 796.45 on the NSE, higher by 4.85 percent from the previous session’s closing price.

RITES received a formal letter of intent towards appointment as project management consultant (PMC) for the infrastructure development for a permanent campus of IIT Bhubaneswar in Odisha.

The estimated project cost, including the PMC fees, is estimated at Rs 414 crore, excluding GST.

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RITES will aggressively bid for export and consultancy orders in the remainder of 2023-24 and in 2024-25 to make up for the fall in revenues from the Indian Railways’ quality assurance/inspection division, Rahul Mithal, the company’s CMD, told Moneycontrol in an interview on February 8, 2024.

The firm secured more than 100 orders worth Rs 612 crore in the quarter ended December 31, 2023, to make up for the fall in its revenues and net profit in 2023-24 due to the railways reducing the rates for quality assurance/inspection tenders since the start of the year.

The RITES stock has risen more than 65 percent over the past six months, as against a 14 percent gain in the benchmark Nifty 50 during the same period.

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