Friday, 23 August 2019
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RITES attains highest ever turnover of Rs. 566 crore

Turnover and profit after tax (PAT) of RITES Ltd, a Government of India Enterprise under the Ministry of Railways, registered a growth of 32.9% and 19.2% respectively in the financial year ended March 31,2007. Turnover and PAT at Rs 566 crore (previous year Rs.426 crore) and Rs.118 crore (previous year Rs99 crore) respectively, is the highest ever achieved by the Company. Turnover from export of locomotives and rolling stock including leasing was the highest ever of Rs.266 crore. Export was made to a number of new countries for the first time including Angola, Senegal and Mali. RITES has been declared as a schedule ‘A’ company. RITES, the first PSU, under the Ministry of Railways, was established in 1974 as schedule ‘C’ company with the initial capital of Rs.10 lakh, was upgraded to schedule ‘B’ in 1987.
In view of continuous growth and excellent financial results, RITES has declared the total dividend payment for the year including proposed one to Rs.40 crore being 1000% of paid-up capital and is also highest ever paid so far, up from the previous year of Rs.20 crore.
During the year, RITES received the most prestigious ‘SCOPE” award for excellence in management of PSU’s from the Honourable Prime Minister of India in March 2007.
Addressing the 32nd Annual General Meeting of the Company,
Mr.R.K.Rao, Chairman (RITES) and the Member Mechanical, Railway Board said that in the face of an extremely competitive business scenario, RITES succeeded in securing challenging and prestigious contracts worth Rs.742 crore including Rs.535 crore in India.
The most prominent achievement during the year has been the breakthrough for the implementation of Tanzania Railway concession project on a new structure with RITES and Government of Tanzania as members of the consortium. The concessioning company to take over the project has been incorporated in May 2007. Business has started flowing in good measure from the concession in Mozambique awarded during 2004-05 for operating the Beira rail system for 25 years and rehabilitation of rail system is in progress. The staff strength in Mozambique and Tanzania will be over 4000 and RITES turnover will increase considerably with increase in overseas consultancy and exports on a sustainable basis.
The execution of Sudan Railways contract for rehabilitation of diesel electric locomotives of M/s Hitachi, Japan, has been successfully completed and this will now open new markets for RITES. There is tremendous potential for such works, as there are a large number of locomotives in a number of African countries, which are in need of rehabilitation. RITES also supplied five new 2300 HP diesel electric locomotives having latest fuel-efficient engines and roller suspension bearing traction motors to Sudan. The export supplies to Mali, Tanzania etc are keeping their time schedules.
In addition, RITES continued to provide technical consultancy services in all facets of transportation to various overseas clients in Malaysia, Afghanistan, Senegal, Angola, Botswana, and Myanmar.
The salient features of domestic business during the year has been the award of prestigious assignments of project management for High Capacity Bus System (HCBS) corridor from Ambedkar Nagar to Delhi Gate and multi-modal Transport Plan Study by the Planning Commission on traffic flows and modal costs for the horizon years pf 2026in respect of railways, airways coastal shipping This study has been considered as a think tank for the Transport Policy Development integrating the development plans of the country. Preliminary engineering and traffic survey (PETS) and final location survey for Dedicated Freight Corridor between Delhi and Mumbai and Ludhiana and Howrah have been undertaken. Detailed geo-tech investigation for design and construction of major bridges on Katra-Quazigund section in the State of J&K are in progress.

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