RITES gets revised estimate of ₹532 crore for Northeast Frontier Railway electrification project

State-owned RITES Ltd on Friday (November 22) has received revised estimates for its railway electrification project in the Lumding-Badarpur (LMG-BPB) section of the Lumding division, under Northeast Frontier Railway (NFR).

The revised total cost for the turnkey project stands at ₹531.77 crore, excluding GST, which marks an increase from the original cost of ₹288.44 crore.

“…in continuation to our intimation dated June 28, 2021 regarding major order secured for Railway Electrification work for project Lumding-Badarpur, we are pleased to inform you that RITES has received revised estimates for Railway Electrification work of LMG-BPB Section of Lumding Division, N.F Railway on November 21, 2024 from Northeast Frontier Railway,” the company said in a stock exchange filing.

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The project, awarded on November 21, 2024, includes the complete electrification of the LMG-BPB section and is part of NFR’s ongoing railway infrastructure development efforts.

RITES will carry out the work on a turnkey basis, which also covers the project management consultancy (PMC) fee. This revised order reinforces RITES’ role in enhancing India’s railway electrification network.

RITES’ net profit for the quarter fell by 25% to ₹82.5 crore. RITES had reported a net profit of ₹110.2 crore during the same period last year. Revenue for the quarter declined to ₹541 crore, compared to ₹582.4 crore during the same period last year, a drop of 7.1%.

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RITES’ earnings before interest, tax, depreciation and amortisation (EBITDA) also fell 23% YoY to ₹106.4 crore, compared to ₹138 crore last year. EBITDA margin for the quarter narrowed to 19.7% from 23.6% last year.

In an interaction with CNBC-TV18 on September 23, the management had anticipated a gradual increase in its order book.

The management also said it expects to sustain EBITDA margin at levels of nearly 22%. Shares of RITES Ltd ended at ₹275.20, up by ₹1.35, or 0.49%, on the BSE.

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