RITES shares slide 3% as company informed of contract foreclosure with UPSBCL

At 11:50 AM, shares of RITES were trading 1.11% lower at ₹227.64 apiece on the National Stock Exchange.

The order included consultancy services for construction supervision of civil works (CSC) for supervision, monitoring, quality control and work zone safety for construction of bridges, rail over/under bridges, flyovers and elevated roads, including approaches in several districts of Uttar Pradesh.

“Due to interpretation issues of the certain provisions of the agreement between RITES and UPSBCL, it was difficult to continue with the execution of the agreement under the existing terms; hence, it was mutually agreed to foreclose the agreement,” the company said in a statement.

RITES further said that no impact was expected due to foreclosure “as the execution of the work was not commenced”.

The Navratna PSU on Tuesday bagged two orders from Oil India and Numaligarh Refinery.

The company's consolidated net profit fell 15% year-on-year (YoY) to ₹109 crore in the third quarter of FY25 (Q3FY25), compared to the ₹129 crore it reported in the year-ago period.

Its revenue from operations stood at ₹575.8 crore in the quarter under review, slumping 15.7% YoY from ₹682.9 crore reported in Q3 FY24.

Last month, the railway PSU firm had bagged an order worth ₹27.96 crore from the South-Central Railway. The project will involve the preparation of a detailed project report (DPR), the final alignment design, a traffic survey report, railway over railway (ROR) calculations, a detailed estimate and the preparation of the Engineering, Procurement and Construction (EPC) documents.

RITES is a multidisciplinary consultancy organisation in transport, infrastructure, and related technologies. It provides a comprehensive array of services under a single roof and believes in transferring technology to client organisations.