RITES Limited has informed the Exchange about Update regarding Major Order Secured from IIM Raipur,
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RITES Limited has received a letter from IIM Raipur revising the estimated project cost for its EPC construction project at the IIM Raipur campus. The estimated cost has been increased from Rs. 148.25 crore to Rs. 220.65 crore, marking a jump of Rs. 72.40 crore (around 49% increase) on a cost-plus basis, excluding GST. The project covers construction of an academic block, a hostel cluster of 4 blocks, first floor of the students dining block, and an auditorium block under EPC mode-III, with a 23-month execution timeline. The order is from a domestic government entity and is not a related-party transaction.
This is a positive development for shareholders as the revised order value boosts RITES's order book by a significant amount without the company having to win new business. Higher project value on a cost-plus basis should translate into better revenue and margins from this single project over the next 23 months.