Rs 6,355 Crore Order Book: LIC-Backed PSU Railway Infra Company Signs MoU with Etihad Rail to Develop Railway Infrastructure in the UAE!

LIC holds a 6.27 per cent stake in the company as per Q1 FY25.

RITES a leading transport infrastructure consultancy, has signed a Memorandum of Understanding (MoU) with Etihad Rail, the developer and operator of the UAE National Rail Network, to collaborate on developing railways and related infrastructure in the UAE and the wider region. This partnership aims to leverage the strengths of both organizations to explore opportunities in areas such as the supply or leasing of rolling stock, consultancy, project management, and services like rolling stock repair and the operation and maintenance of railway infrastructure. These efforts will focus on modernizing and improving the efficiency of rail services across the region.

A key initiative outlined in the MoU involves analyzing the capacity of rail corridors in the UAE and surrounding areas, to enhance logistics efficiency and improve trade routes. The partnership also highlights the importance of innovation, with both parties set to explore advanced IT solutions for train operations, passenger management, and technical input on maintenance practices. Knowledge sharing, expertise transfer, and workforce development are crucial aspects of this collaboration, including comprehensive training programs and employee exchange initiatives to foster skills development.

Today, the company’s shares are trading at around Rs 317.60 per share on the BSE. The company’s current market capitalization stands at Rs 15,264 crore. Additionally, the shares have delivered a return of over 30 per cent in just one year.

As per the Quarterly Results, in the first quarter of FY25, RITES recorded a revenue of Rs 486 crore. The operating profit for Q1 FY25 stood at Rs 106 crore, and the net profit was Rs 90 crore. Looking at the annual performance, the company generated a revenue of Rs 2453 crore in FY24. The operating profit for FY24 was Rs 661 crore, with a net profit of Rs 495 crore, compared to a net profit of Rs 571 crore in FY23.

According to the company's shareholding pattern, the promoters or the President of India hold a significant 72.20 per cent stake. Public investors own 15.42 per cent of the shares, while foreign institutional investors (FIIs) hold 2.73 per cent and Domestic Institutional Investors (DIIs) own 9.64 per cent.

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Disclaimer: The article is for informational purposes only and not investment advice.