RITES wins contract worth Rs. 160 crore

RITES Limited has signed the contract for supply of two additional fully air-conditioned Diesel Multiple Unit train sets, for US$ 22.4 million (Rs. 160 crore) with the Ministry of Transport and Civil Aviation, Government of Sri Lanka, on September 17, 2019.

RITES has just completed supply of six sets of DMU coaches to Sri Lanka with state-of-the-art features and amenities, under a previous contract. The supply under the new contract will be completed in FY21.

Earlier this month, the company had signed an agreement on August 30, 2019 with a foreign client for receipt of payment of an amount of US$ 12,818,152.17 (approx. Rs. 92 crore) on or before September 15, 2019 being outstanding payment due to RITES, for which arbitration proceedings were already initiated. Out of this amount, US$ 9.19 million (approx Rs.66 crore) is towards principal which is already provided for in the books of RITES and US$ 3.62 million (approx Rs.26 crore) is towards interest income which is not yet recognized due to uncertainty.

On Wednesday, the stock of RITES closed flat at Rs. 235. During the session, it made intra day high and low of Rs. 237.30 and Rs. 234.80, respectively.