RITES Secures Contract Worth $10.80 Million from Ntokoto Rail Holdings

RITES Ltd. has received an addendum to its contract with Ntokoto Rail Holdings Pty. Ltd., increasing the total order value from $5.40 million (CIF) to $10.80 million (CIF). The additional work involves the supply and commissioning of overhauled in-service Cape Gauge ALCO Diesel Electric Locomotives, which will include new Cape Gauge Bogies, Traction Motors, and an updated Control System.

Contract Details

The work will be executed at a nominated facility, where the locomotives will be overhauled before being delivered. The contract also includes an on-site warranty support period of one year. The execution timeline for the additional work is six months from the date of advance payment.

This is an international contract, with Ntokoto Rail Holdings Pty. Ltd. awarding the work. The contract does not fall under related party transactions, and no promoter or promoter group of RITES has any interest in the awarding entity.

Market Update

As of March 18, 11:37 AM, RITES Ltd. is trading at ₹210.50, up ₹6.14 (3.00%) for the day, while showing a decline of 38.11% over the past six months and 33.39% over the past year.

Conclusion

The original contract, announced earlier, covered the supply of overhauled Cape Gauge ALCO Diesel Electric Locomotives. The new order adds to this scope, incorporating additional locomotives with upgraded components.

RITES is to complete the additional work within the agreed six-month period. The company has not disclosed further details regarding specific delivery timelines beyond the mentioned execution window.

This update was shared with the stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.