RITES Secures Major Order for Railway Siding Operation and Maintenance

RITES Limited, a leading transport infrastructure consultancy and engineering firm, has signed a Memorandum of Understanding (MoU) with Neyveli Uttar Pradesh Power Limited (NUPPL). The agreement pertains to the comprehensive operation and maintenance of the NUPPL/GTPP railway siding, reinforcing RITES’ expertise in railway project execution.

At 9:45 AM, RITES’ share price was trading at ₹212.70 on the NSE, down by 0.51%.

Key Details of the Agreement

The MoU outlines the operational scope, financial considerations, and execution timeline, reflecting the strategic importance of the contract.

Contracting Entity

The order has been awarded by Neyveli Uttar Pradesh Power Limited (NUPPL), a joint venture between Neyveli Lignite Corporation India Limited (a Government of India enterprise) and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (a Government of Uttar Pradesh enterprise).

Nature of Work

The project involves the comprehensive operation and maintenance of the railway siding at NUPPL/GTPP, ensuring smooth logistics and railway infrastructure support.

Contract Tenure

The contract is set for a 5-year period, demonstrating RITES’ long-term involvement in the power and rail infrastructure sector.

Order Value

The total contract value is ₹120.13 crore (excluding GST and escalation costs), highlighting the project’s scale and significance.

Domestic Contract with No Promoter Involvement

• The order has been secured from a domestic entity, reinforcing RITES’ position in the Indian infrastructure sector.
• There is no involvement of the promoter group or related parties in awarding this contract, ensuring a transparent transaction.

Financial Performance 

RITES operating revenue (consolidated), excluding other income, stands at ₹576 crore in Q3FY25 as against ₹683 crore in Q3FY24, a dip of 15.7%. Total revenue is ₹614 crore as against ₹700 crore in Q3FY24. EBITDA and PAT stand at ₹123 crore and ₹109 crore with margins of 21.3% and 17.8%, respectively. Year-on-year, there is a decrease in revenue which is attributed to lesser revenue from quality assurance, a downtick in turnkey and no exports.  

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