RITES gains on inking recovery agreement

India’s public sector enterprise and Miniratna company RITES Limited has signed an agreement with a foreign client for receipt of payment of amount worth Rs. 92 crore on or before September 15, 2019 being outstanding payment due to the company, for which arbitration proceedings were already initiated.

The company has agreed to withdraw the arbitration proceedings on receipt of the total payment. Out of this amount, around Rs. 66 crore is towards principal which is already provided for in the books of the company and around Rs. 26 crore is towards interest income which is not yet recognised due to uncertainty.

Looking at the recently concluded quarter, the company has posted 46.8 per cent yoy revenue growth. Also, consolidated EBITDA and PAT have gone up by 13.0 per cent and 11.3 per cent respectively over Q1FY19.

During Q1FY20, gross order inflow was Rs. 473 crore, taking the order book as on 30.06.2019 to Rs. 6052 crore and management’s focus will continue to be on project delivery during FY20.

RITES is a government of India enterprise which is engaged in consultancy in the fields of transport, infrastructure and related technologies. It also provides a range of services as a one-stop shot solution and believes in the transfer of technology to client organizations.

On Tuesday, the stock opened at Rs. 223.90 on the BSE and gained nearly 2 per cent on this recovery agreement.