Companies

RITES net profit drops 30% to ₹105 crore in Q3

Our Bureau New Delhi | Updated on February 10, 2021

RITES, a transport infrastructure consultancy, has registered a profit after tax of ₹105 crore for the quarter ended December 2020, a 30 per cent drop against the ₹150 crore registered in the same time previous fiscal, according to consolidated numbers shared by the company.

The consolidated revenue in the third quarter of fiscal 2020-21 decreased 27 per cent to ₹480 crore, compared with ₹663 crore in fiscal 2019-20 as export deliveries were not scheduled during the quarter (which had an approximate impact of ₹90 crore) and due to restrictions imposed due to the pandemic, added the company in a release.

Commenting on the results, Rajeev Mehrotra, Chairman and Managing Director, RITES Ltd, said: “Working towards post-pandemic economic growth, the company has maintained its focus on project execution, sustaining margins, and consolidation of order book.”

There were no export deliveries scheduled for Q3FY21. However, the fourth quarter is expected to see export shipments to Sri Lanka and Mozambique.

The company’s order book stands at ₹6,534 crore as on December 31, 2020, which provides revenue visibility for two to three years, the release said.

Further commenting on the outlook, Mehrotra said: “The emphasis on infrastructure development in the Union Budget 2021-22, the National Rail Plan and the National Infrastructure Pipeline will help drive the growth of the sector, thus providing us opportunities to achieve double-digit growth in FY22 and beyond.”

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Published on February 10, 2021
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