RITES & DVC connects through MoU to accomplish the railway infra works

RITES Ltd and Damodar Valley Corp have entered into a memorandum of understanding (MoU) to work together on Project Management Consultancy for railway infrastructure projects.

The Navratna public sector undertaking (PSU) has informed in a stock exchange filing that the partnership is focused on discovering innovative infrastructure solutions to enhance, revamp, and expand rail connectivity for power plants and the surrounding regions. RITES will collaborate closely with DVC to develop rail infrastructure facilities and associated civil, structural, S&T, OHE works, as stated.

On Monday, March 18, RITES notified the exchanges that it had secured orders valued at Rs.67.5 crore from the National Small Industries Corporation. The filing further stated that the company would serve as the quality assurance agency for inspecting the quality of 18 trades of toolkits under the PM Vishwakarma Scheme.

The organization, previously identified as Rail India Technical and Economic Service, is striving to end its pattern of poor revenue growth in the upcoming year, following six quarters of falling short of market projections.

The company's Chairman and Managing Director, Rahul Mithal said,"In quarter three (Oct-Dec 2023), we could achieve our vision of being a one-order-a-day company; we got 100-plus orders in quarter three, totaling to more than ₹600 crore. So as these orders mature into revenue in the coming FY, we would see substantial growth in our EBITDA vis-a-vis our baseline of 2022-23 and 2023-24 will be a year of consolidation." 

The shares of RITES Ltd closed at Rs.674.25 on the BSE, showing a 0.5% increase. Year-to-date, the stock has seen an impressive growth of almost 35%, with a one-year return of 78%.