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RITES reports ₹83 cr income for March quarter

Our Bureau New Delhi | Updated on July 30, 2018 Published on July 30, 2018

To pay final dividend of ₹2 per share

RITES’ board of directors has recommended a final dividend at the rate of 20 per cent (₹2 per share).

For the quarter ended March 2018, RITES reported a net income of ₹83 crore, up 74.6 per cent against ₹47 crore in the same period last year. The total revenue for the fourth quarter were at ₹588 crore, up 34.6 per cent.

RITES Limited, a mini ratna public sector enterprise, has announced its FY18 audited results.

Commenting on the results, Rajeev Mehrotra, Chairman and Managing Director, RITES Limited said, “We are happy to inform that the company has recorded its highest ever revenue of ₹1,667 crore on consolidated basis. Operational revenue has recorded a growth of 11.2 per cent per cent over FY17.”

“The company got almost 35 per cent of its business in the fourth quarter,” Rajeev Mehrotra, CMD, RITES, told BusinessLine. He added that the investment in Indian Railway Station Development Corporation is yet to go through and they are “exchanging details”.

Full year results

RITES’ profit after tax (PAT) has gone up by 7.8 per cent to ₹363 crore over FY17. This increase in profit is achieved despite absorbing the full year pay revision impact and as against higher base in FY17 due to sale of non-current investment. If the impact of sale of non-current investment is adjusted in FY17 PAT, then our FY18 PAT has increased by 29 per cent,” he stated in a statement to BSE. Referring to the other income from non-current investment, Rajeev Mehrotra, CMD, RITES, told BusinessLine that “RITES sold its stake in a concession in Africa last year”.

Consultancy business remains the focus area where the company has achieved revenue of ₹1,015 crore, with a growth of 22 per cent over FY17. The revenue from turnkey construction projects has gone up by ₹115 crore over FY 17.

“Our subsidiary REMCL has also shown a strong growth in terms of revenue, which has grown to ₹69 crore, up by 17.6 per cent and PAT increasing to ₹30 crore, up by 72 per cent,” he added.

Total dividend paid ₹148 crore in FY18 includes interim dividend of ₹70 crore for FY18 and final dividend ₹78 crore for FY17.

Outlook

Commenting on outlook for the FY19, he said, “The company has a strong order book of ₹5,517 crore as of date on standalone basis and accordingly in the MoU signed with Ministry of Railways for FY19, consolidated operational revenue (excluding other income) target for excellent rating has been kept at ₹1,835 crore, up by 22 per cent from FY18.”

Further, RITES recently secured a major export order of ₹567 crore for supply of Broad Gauge passenger air conditioned and non-air conditioned coaches which are expected to be exported within 27 months of opening of Letter of Credit. This has been included in the order book mentioned above.” He said the funds for this order are expected to be credited within eight weeks.

Published on July 30, 2018
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