Navratna PSU Stock RITES To Consider 1st Interim Dividend For FY25 And Bonus Shares

The Navratna PSU stock RITES is going to be the focus of the market watchers as the company has announced that the Board of Directors will meet on 31st July 2024 to consider 1st interim dividend for FY25 and bonus shares.

"This is furtherance to our letter of even no. dated 23.07.2024 regarding intimation of Board Meeting scheduled to be held on Wednesday, 31st July, 2024 inter alia, to consider and approve the Standalone and Consolidated Unaudited Financial Results of the Company for the quarter ended on 30th June, 2024 and for consideration of payment of First Interim Dividend, for the F.Y 2024-25, If any. In this connection, it is further informed that the Board of Directors of the Company may also consider the proposal for issuance of Bonus shares in the aforesaid Board Meeting. Since, the Trading window is already closed for the purpose of consideration and approval of Financial Results, the same period will also apply for Bonus share issue, if any," said RITES in a stock exchange filing on 28th July.

"Pursuant to Regulation 29 & 42 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, notice is hereby also given that in the said meeting Board may consider payment of first Interim Dividend, for the F.Y 2024-25, if any. The Company has fixed Thursday, August 07, 2024 as the Record date for the purpose of payment of first Interim Dividend for the F.Y 2024-25, if declared by the Board," the company further informed stock exchanges.

RITES has announced an equity dividend of 180.00%, or Rs 18 per share at a face value of Rs 10 for the financial year ended in March 2024. With the share price of Rs. 667.05 currently, this translates into a 2.7% dividend yield. For the past five years, the firm has regularly distributed dividends and has a strong dividend track record.

The Directorate of Medical Education & Research, Mumbai, has recently given RITES an order for Project Management Consultancy (PMC) work on a turnkey basis for the construction of a new government medical college with a capacity of 100 students and a hospital with 430 beds in Amravati, Maharashtra. The order was received on July 25, 2024. The estimated project cost, exclusive of GST, is expected to be Rs. 321.30 crore, including PMC fees.

RITES received a Letter of Acceptance for Consultancy Services for Third Party Monitoring & Quality Control for 47 Roads (Length 996.70 km) across Assam under Assam Mala 2.0 for the year 2023-24 earlier this month on July 16, 2024, from the Public Works Roads Department (PWRD), Government of Assam. The project has a cash agreement for Rs 50.18 crore, which includes 18% GST.

RITES Limited is a multifunctional engineering and consultancy company that was founded on April 26, 1974. It is a Navratna and Schedule 'A' Central Public Sector Enterprise under the Ministry of Railways.

On Friday, the shares of RITES closed 1.25% lower at Rs 667.05 apiece with a market cap of Rs 16,029.34 Cr.