Home / Markets / Stock Markets /  Rites shares rally to hit record high today, up 16% in 5 days

Shares of Rites Ltd surged more than 6% to hit a record high of 358 apiece on the BSE in Monday's trading session. The stock has been in an upward trend since the last few days and has rallied over 16% in the last five trading sessions.  

Rites is a transport infrastructure consultancy and engineering firm, under the ownership of Indian Railways. The PSU stock has rallied more than 24% in the past year whereas it is up over 26% in 2022 (YTD) so far.

The company’s net profit for the first quarter ended June 2022 grew nearly 86% to 145 crore whereas its consolidated operating revenue stood at 605 crore against 355 crore in Q1 FY22, up 70.4%, while its total revenue stood at 637 crore against 377 crore last year, a jump of 68.8%. Meanwhile, Rites' Ebitda grew 84.5% from 97 crore in Q1 FY22 to 179 crore. The company has an order book of 4,939 crore as on March 31, 2022

Rahul Mithal, chairman and managing director, Rites, said the company’s performance in Q1 has maintained the momentum it received in FY22 when its key financial parameters surpassed pre-covid levels. “Our performance in Q1 shows that Rites continues to be on the path of a V-shaped recovery in sync with the rebound of the economy," said Mithal.

“The thrust on fast-paced electrification/doubling of railway lines, road construction, investment in urban mobility and ropeways, private participation in construction and maintenance of highways, ports and airports and unlocking funds through monetisation of non-core assets has to the creation of mega transport asset like highspeed railways, dedicated freight corridors, expressways, greenfield/ brownfield airports and ports, metros demonstrating advancement in the transport infrastructure," the company said in its annual report for 2021-22.

“This growth momentum is expected to continue with projects worth approximately 142 lakh crore identified under the dynamic National Infrastructure Pipeline and the National Rail Plan envisaging railway infrastructure expansion for FY 2029-30 with more than 35% y-o-y increase in capital expenditure (capex) with a proposed infrastructure spend of over 10 lakh crore in the Budget 2022-23," it added.

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