RITES Ltd, a Navratna public sector enterprise under the Ministry of Railways, has been awarded a major contract by the Steel Authority of India Limited (SAIL). The contract, valued at ₹69.78 crore (excluding GST), involves the repair of 43 WDS6 locomotives at SAIL’s Bhilai Steel Plant. The project, titled “R3Y/R6Y Repair of WDS6 Locomotives,” will span a period of three years and includes comprehensive repair and maintenance work.
This announcement follows RITES’ successful acquisition of another significant project. On January 1, 2024, the company revealed it had secured a $9.7 million contract for the upgrade of the Palmyra to Moleson Creek Highway in Guyana, South America. The project, which includes a 36-month pre-construction and construction phase followed by a 24-month post-construction period, is expected to be completed in five years.
Founded in 1974, RITES provides multidisciplinary engineering and consultancy services. In October 2023, the company was granted Navratna status, boosting its operational autonomy and financial flexibility. This status allows RITES to independently invest up to ₹1,000 crore without requiring approval from the central government, positioning the company for larger and more complex projects.
Despite these notable contract wins, RITES’ stock has shown volatility. On January 2, 2024, its shares closed at ₹292.90, down by 0.78% on the NSE. Over the last three months, the stock has declined by more than 12%, although it has posted a 17% return over the past year.
The company’s financial results for Q2 FY24 showed a decline in net profit, which dropped 25% year-on-year to ₹82.5 crore from ₹110.2 crore. Revenue also fell by 7.1%, totaling ₹541 crore, compared to ₹582.4 crore in the same quarter of the previous year.
Established in 1974, RITES specializes in transport infrastructure and related technologies, offering services in sectors such as railways, highways, ports, airports, and urban transport. With a strong global presence across more than 55 countries, the company is known for its expertise in project management, design, consultancy, and turnkey solutions.
RITES is also actively contributing to India’s growth by supporting initiatives like Make in India and Atmanirbhar Bharat through its indigenous manufacturing of rolling stock and export-oriented services. Recognized for its commitment to quality and sustainability, RITES continues to play a pivotal role in shaping modern transportation infrastructure.
