RITES‘ shares were muted after the company announced securing a major order from Ntokoto Rail Holdings for supplying and commissioning overhauled locomotives.

What Happened: RITES has received the Letter of Acceptance (LOA) from Ntokoto Rail Holdings for the supply and commissioning of overhauled in-service cape gauge ALCO diesel-electric locomotives, fitted with new cape gauge bogies, traction motors, control system air brakes and more, overhauled at a designated facility. The agreement also includes on-site warranty support for a year.

The contract, worth $5.40 million (₹45 crore), is set to be executed within six months, the company said in its press release on Monday.

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The company has bagged a slew of orders in October. On October 1, the company secured a significant international contract from Tsiko Africa Logistics. The contract, valued at $4.28 million (₹35.8 crore) involved the supply, commissioning and a one-year onsite warranty of overhauled in-service cape gauge 3,100-horsepower, diesel-electric locomotive.

Just days later, it signed a memorandum of understanding with the Delhi Metro Rail Corporation to provide services in general consultancy, project management, detailed design, and feasibility studies, among others. The alliance is set to tap into the urban transit system space, delivering high-quality solutions for both domestic and international projects. This collaboration aligns with RITES' ongoing "RITES Videsh" initiative to expand its global footprint.

Price Action: RITES was trading flat at ₹249 on Tuesday morning.

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