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RITES Ltd saw a 11 per cent decline in standalone profit after tax (PAT) to ₹117 crore for the quarter ending September 30, 2023. The PAT in the year-ago-period was ₹131 crore.
The operating revenue for the period under review was ₹549 crore, down 13 per cent from ₹632 crore in the year-ago-period. The decrease in revenue on a y-o-y basis is mainly attributable “to a significant dip in the export stream of revenue and revenue from quality assurance.”
EBITDA stood at ₹117 crore, while EBITDA margin was at 20.2 per cent.
“Amidst the competitive environment, the growth in consultancy revenue and order realisation, underscores our core strength and is in line with our strategy to minimise the impact of challenges this year on the export and inspection business streams,” said Rahul Mithal, Chairman and Managing Director, RITES Ltd.
According to a statement by RITES, the consultancy business continues to provide the highest revenue to the company. Stand-alone revenue from the segment, during the quarter under review, was ₹294 crore — ₹276 crore from domestic consultancy and ₹18 crore from international consultancy — with margins at 40.1 per cent. Consultancy business has shown a growth of 5.3 per cent y-o-y.
Leasing revenue stood at ₹31 crore, maintaining the margins of 40.4 per cent; while turnkey revenue was ₹224 crore.
Healthy order book
The company has secured more than 70 orders (including extension of works) worth more than ₹329 crore in Q2FY24, thereby maintaining an order book of ₹5,529 crore as on September 30.
“With a healthy order book comprising consultancy works worth ₹2,640 crore and an order realisation rate of 0.85 order per day this quarter, we continue to tread the path to be a ‘Go-To Infrastructure Consultancy’ company,” Mithal said
H1 FY24
For the first six months of the year (H1FY24), the total revenue stood at ₹1,171 crore against ₹1,321 crore in H1FY23. The drop is primarily because of a decrease in revenues from export segment and the quality assurance business.
The EBITDA and PAT for H1FY24 stood at ₹301 crore and ₹230 crore; EBITDA margins and PAT margins stood at 26.7 per cent and 19.6 per cent, respectively. The margins remained range-bound as the better-margin consultancy stream of revenue balanced out the low-margin turnkey revenue.
The Board of Directors declared the second interim dividend of ₹4.5 per share amounting to ₹108 crore.
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