According to reports from CNBC TV18, RITES Limited announced on Wednesday, April 8, that it has received an amendment to the letter of award dated March 31, 2021, from National Aluminium Company Limited (NALCO). The amendment relates to detailed engineering and project management consultancy (PMC) services for the construction of a railway siding at Sankerjang in phase-I of the Utkal-D coal mines project. The contract value has been revised upward from ₹79.73 crore to ₹118.89 crore, excluding GST, including RITES fees.
As reported by CNBC TV18, the contract is being executed on a deposit mode on a cost-plus turnkey basis. According to the exchange filing, the nature and scope of work remain unchanged, covering detailed engineering and PMC services for the railway siding project, and the execution timeline continues to be ongoing. The amendment represents a significant increase in the contract value, reflecting the expanded scope or complexity of the railway siding project.
According to CNBC TV18, RITES had posted steady performance for the December quarter, reporting a 2% year-on-year rise in net profit to ₹102 crore, compared with ₹100 crore in the corresponding period last year. The company's revenue increased 5.7% to ₹608.6 crore, supported by stable execution across its core consultancy and project management segments. Operating performance improved meaningfully during the quarter, with EBITDA rising 21.5% year-on-year to ₹142.5 crore from ₹117.3 crore.
As reported by CNBC TV18, shares of RITES Limited closed at ₹200.75 on April 8, gaining ₹9.01 or 4.70% during the session, reflecting strong buying interest. The positive market response likely reflects investor confidence in the company's ability to secure and execute large infrastructure projects, particularly in the railway sector.
