RITES Shares Surge 8% After Inking MoU with Etihad Rail for UAE Infrastructure Projects
RITES Ltd., a leading transport infrastructure consultancy and engineering services provider, has seen its shares surge 8% to Rs 324.70 on the BSE following the signing of a Memorandum of Understanding (MoU) with Etihad Rail, the developer and operator of the UAE National Rail Network.
The MoU aims to explore cooperation and synergize strengths in developing railways and related infrastructure services in the UAE and wider region. This strategic collaboration underscores RITES' commitment to operational excellence and innovation, contributing to sustainable infrastructure development.
Rahul Mithal, Chairman & Managing Director of RITES, highlighted that this partnership represents a significant advancement in their strategic initiative of 'RITES Videsh,' aimed at expanding global services. The entities are laying the foundation to significantly contribute to enhanced connectivity and set new benchmarks of excellence in the industry.
Etihad Rail CEO Shadi Malak emphasized that the strategic partnership with RITES marks a significant step towards enhancing connectivity and transforming the transportation landscape in the UAE. The collaboration will yield forward-thinking, innovative solutions that benefit both freight services and future passenger services, contributing to overall infrastructure and operational excellence.
The partnership will leverage the strengths of both entities to explore collaborative opportunities for supply/leasing of rolling stock, consultancy, and project management for railway projects. It will also involve services such as repairing of rolling stock and operation and maintenance of railway infrastructure to ensure more efficient and modernized rail services in the UAE and across the region.
Another key initiative under the MoU is the capacity analysis of rail corridors in the UAE and nearby locations. This aims to improve efficiency, streamline logistics, and enhance trade routes. Both parties will also explore advanced IT solutions for train operations and passenger management, as well as technical inputs on maintenance practices.
The partnership will entail knowledge transfer, expertise sharing, and workforce development. Comprehensive training programs and employee-exchange initiatives are crucial elements of this partnership, aiming to enhance the capabilities of both entities.
RITES has diversified services and geographical reach, engaging in almost all sectors of infrastructure space from railways to highways, metros, urban engineering, sustainability, green mobility, airports, ports, ropeways, institutional buildings, inland waterways, freight terminals, Jal Jeevan Mission, multi-modal transport, and renewable energy.
The company's ability to secure large-scale projects and its strategic expansion into international markets like Africa, Latin America, the Middle East, and Southeast Asia further enhance its growth prospects. Upcoming cross-country corridors, Africa's program for infrastructure development, Latin America's focus on closing infrastructure gaps, and plans for enhancing connectivity between regional groups like BIMSTEC and ASEAN in Asia open vistas of opportunities for RITES.
On Monday, October 7, RITES received a Letter of Award (LOA) for an order from Ntokoto Rail Holdings worth $5.4 million, which is expected to be executed within six months. Additionally, RITES signed a MoU with Delhi Metro Rail Corporation (DMRC) last week, combining their strengths to identify, secure, and execute metro projects in India and abroad.
RITES' stock has seen significant gains this year, rising 28.55% this year and 37.22% in one year. The stock has traded lower than its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages but has seen a substantial increase in trading volume with over 1.88 lakh shares changing hands amounting to a turnover of Rs 6 crore on BSE.
The market cap of RITES climbed to Rs 15,523 crore, reflecting the company's strong financial position and growth prospects. This strategic collaboration with Etihad Rail underscores RITES' commitment to operational excellence and innovation while contributing to sustainable infrastructure development.