Rs 8,790 crore order book: Railway company signs MoU with Etihad Rail to further augment business collaboration

RITES Limited, a prominent Transport Infrastructure Consultancy and Engineering firm, has officially signed a Memorandum of Understanding (MoU) with Etihad Rail and its subsidiary, the National Infrastructure Construction Company (NICC) LLC. This strategic agreement is designed to augment business collaboration in the mobility sector, specifically targeting projects within the UAE and other international geographies. The partnership aims to leverage RITES' extensive five decades of expertise in consultancy, transport infrastructure, and engineering solutions, combining it with NICC's significant execution capabilities to create powerful synergies for developing infrastructure projects across the region.

The MoU was formally executed in Abu Dhabi during the Global Rail Transport Infrastructure Exhibition & Conference. The signing was carried out by H.E. Shadi Malak, CEO of Etihad Rail, and Mr Rahul Mithal, Chairman and Managing Director of RITES Ltd. The ceremony was also notably attended by His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chairman of Etihad Rail, and the Hon’ble Ambassador of India to the UAE, H.E. Sunjay Sudhir. For RITES, this collaboration further strengthens its international presence as part of its strategic initiative, 'RITES Videsh', reinforcing its core principle, 'We Shape What Shapes Lives'.

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Additionally, the company was awarded a significant international contract by Talis Logistics, South Africa, for the "Supply and commissioning of Overhauled in-service Cape Gauge ALCO Diesel Electric Locomotives." This order, valued at USD 18 million (CIF), involves RITES supplying and commissioning the specified locomotives. The company is required to complete the delivery of these locomotives within a short timeframe of six to eight months from the date of receiving the advance payment, marking a substantial boost to RITES's international business portfolio in the rail sector.

Earlier, RITES Limited announced a final dividend of Rs 2.65 per share for the financial year 2024-25. This final dividend, combined with three interim dividends of Rs 4.90 per share already paid, brings the total dividend for the year to Rs 7.55 per share, or a total payout of Rs 363 crore. The company's dividend payout ratio for the year reached 95.4 per cent of its earnings.

About the Company

Established in 1974, RITES Limited is a leading public sector player in India's transport consultancy and engineering, offering diversified services from locomotive and train manufacturing to consultancy, exports, leasing and turnkey projects across Railways, metros, airports, ports, highways, ropeways and urban infrastructure. As India's export arm for rolling stock (except Thailand, Malaysia, and Indonesia), it boasts expertise in various gauges and caters to diverse transportation needs.

The stock has a 52-week high of Rs 370.50 per share & a 52-week low of Rs 192.30 per share and has been maintaining a healthy dividend pay-out of 95.4 per cent. The company has a market cap of over Rs 12,000 crore and as of June 30, 2025, its Order Book stands at Rs 8,790 crore. The stock has an ROE of 15 per cent and an ROCE of 21 per cent. The stock is up over 30 per cent from its 52-week low of Rs 192.30 per share.

Disclaimer: The article is for informational purposes only and not investment advice.