State-run company RITES on Tuesday, October 1, said it has secured received a letter of award for the supply, commissioning and one-year onsite warranty of an overhaul in-service Cape Gauge 3100 HP, diesel-electric locomotive. The company has received this order from Tsiko Africa Logistics (Pty) Limited.

The broad consideration for the order is $4.28 million (₹35.87 crore approx). The order has to be executed within six months with a one-year warranty, the company informed the bourses.

In September, RITES Ltd emerged as the lowest bidder for a tender floated by the Uttar Pradesh State Bridge Corporation Limited. The bid value was around ₹60.03 crore exclusive of taxes.

As part of the deal, RITES will offer consultancy services for the construction of civil works (CSC) for supervision, monitoring, quality control and work zone safety.

This order pertains to the construction of bridges, rail over and under bridges, flyovers and elevated roads including approaches. The state-run company will provide services across projects in Uttar Pradesh.

Talking about the projection for the year, Rahul Mithal, the Chairman and Managing Director of RITES, said the company expects to maintain a margin of around 22%, despite the growing competition.

“In Q1 itself, the orders that we got on a competitive basis were about 70% plus, which is a huge jump from the previous year. So as you go more into the competitive arena, whether it is the domestic orders or exports, obviously they take a hit on the margins,” Mithal told CNBC-TV18.

Shares of RITES Ltd opened flat at ₹345.4 apiece on the BSE and gained 1.36% to hit an intraday high of ₹349.9 apiece. However, the Railway PSU stock pared some of early gains to trade 0.49% lower at ₹343.5 apiece on the BSE at 10:02 am.

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