RITES Limited , a prominent player in the infrastructure consultancy and engineering sector, has announced a significant new contract win. The company has secured a ₹25.3 crore order from NTPC Limited for a major project at the Mouda Super Thermal Power Project.

Contract Details

The contract, described as a "Biennial MGR Mega Contract," encompasses several key aspects of infrastructure development and maintenance:

• S&T (Signalling and Telecommunication) Maintenance
• Track Maintenance
• MGR (Merry-Go-Round) operation
• DU (Unloading) handling

This comprehensive contract is set to play a crucial role in enhancing the operational efficiency of NTPC's thermal power facility in Mouda.

Project Scope and Duration

The project involves infrastructure development work specifically tailored for NTPC's thermal power facility. RITES will be responsible for executing these tasks over a period of 24 months, as stipulated in the contract terms.

Financial Implications

The contract value stands at ₹25.30 crore, exclusive of GST. This represents a significant addition to RITES' order book and underscores the company's strong position in the infrastructure services sector.

Strategic Importance

This contract win highlights RITES' continued success in securing projects from major public sector enterprises. NTPC, being India's largest power generation company, is a prestigious client, and this project further cements RITES' reputation in the industry.

The MGR system plays a critical role in thermal power plants, facilitating the efficient transportation of coal from mines or storage areas to the plant. By securing this contract, RITES demonstrates its expertise in handling complex infrastructure projects crucial to India's power sector.

RITES Limited has confirmed that this contract does not fall under related party transactions, and neither the promoter nor the promoter group has any interest in NTPC Limited regarding this particular order.

As RITES embarks on this significant project, it reaffirms its commitment to delivering high-quality infrastructure solutions that contribute to the nation's power generation capabilities.

RITES Limited , a leading transport infrastructure consultancy and engineering company, reported flat results for the first quarter, while maintaining a positive outlook for the future. The company's Chairman and Managing Director, Rahul Mithal, shared insights during an investor conference call.

Order Book and Revenue Outlook

RITES reported an order book of INR 8,800.00 crore, with approximately INR 3,500.00 crore added from over 300 orders in the last two quarters. Mithal emphasized that the company is now focusing on expeditious execution, with revenue flow expected to start in the latter part as orders move from the design phase to execution.

Segment Performance

The consultancy segment showed a 7% growth, contributing to an 8% increase in EBITDA. This growth in high-margin consultancy orders has helped offset challenges in other areas.

Export Orders

RITES has commenced export deliveries, with two locomotives shipped to Mozambique in early July. Revenue recognition for these exports is expected in the following quarter. The company is also working on a significant order from Bangladesh, with the first rake of 20 coaches aimed for delivery before the end of the fiscal year.

Financial Guidance

Despite flat Q1 results, RITES maintains its guidance to surpass the previous year's performance. The company aims for:

• EBITDA margins around 20%
• PAT margins around 15%

Cash Position

As of the end of Q1, RITES reported:

Future Prospects

1. Turnkey Projects: RITES expects turnkey segment contribution to remain around 30% of total revenue. The company emphasizes that these are primarily consultancy-based projects rather than EPC construction.

2. REMCL (Railway Energy Management Company Limited): RITES sees potential for at least 20% scalability in REMCL over the next year, driven by open access for power procurement in more states and green energy initiatives.

3. Export Orders: The company is working on modifying Indian Railways' spare diesel locomotives for export to African countries, opening up potential for over 100 locomotives.

4. Quality Assurance: This segment has shown improvement, with two-thirds of revenue now coming from non-Indian Railways clients.

Dividend Outlook

As a debt-free company with low CAPEX requirements, RITES aims to maintain its high dividend payout ratio, which has been around 95% in recent years.

Mithal concluded, "The focus now is on expeditious execution so that this young order book starts generating revenue, whether it is from the export vertical or the consultancy or turnkey. By the later part of the fiscal year, we should see a sequential improvement and a substantial improvement on an annual basis, surpassing last year's figures."

RITES Limited continues to leverage its expertise in transport infrastructure consultancy while exploring new avenues for growth in exports and green energy initiatives.