RITES Ltd., the leading Transport Infrastructure Consultancy and Engineering firm, announced its standalone and consolidated financial results for the Quarter and Half-Year ended on September 30th, 2022. The company reported good H1 performance with the year-on-year growth at 13.3 per cent.
The key takeaways were sequential standalone & consolidated revenue growth of 8.7 percent & 7.5 percent, respectively, order Book of ₹5008 crore (as on Sept 30, 2022); secured 70+ orders worth ₹440 crore in Q2FY23 and secured GC for Ahmedabad Metro Phase-II & EPC work for Kollam Station Development.
For Q2FY23, the total revenue stands at ₹684 crore against ₹789 crore in Q2FY22, operating Revenue stands at ₹659 crore against ₹766 crore in Q2FY22, EBITDA stands at ₹181 crore against ₹226 crore in Q2FY22 and profit after Tax stands at ₹140 crore against ₹174 crore in Q2FY22. Commenting on the results, Mr. Rahul Mithal, Chairman and Managing Director, RITES Limited, said, “The trend of sequential growth as also seen vis-a-vis H1 of the previous year continues despite a dip in the Export stream of revenue. The results reiterate our core strength and the USP of having a diversified business portfolio.”
RITES operating revenue, excluding other income, is down by 13.9 percent at ₹659 crore in Q2FY23 as against ₹766 crore in Q2FY22. Total revenue is ₹684 crore as against ₹789 crore in Q2FY22. Sequentially, there is a growth of 7.5 percent and 8.9 percent in total and operating revenue, respectively. The decrease in the revenue is mainly attributed to the lesser export of rolling stock during the quarter. EBITDA and PAT stand at ₹181 crore and ₹140 crore against ₹226 crore and ₹174 crore, respectively, in Q2FY22. EBITDA and PAT margins at 27.5 percent and 20.7 percent, respectively, remained range-bound despite an increase in the low-margin turnkey revenue.
Operating revenue, excluding other income, is down by 15.1 percent at ₹632 crore in Q2FY23 against ₹744 crore in Q2FY22. Total standalone revenue is ₹663 crore against ₹767 crore in Q2FY22. EBITDA and PAT stand at ₹158 crore and ₹131 crore against ₹208 crore and ₹163 crore, respectively, in Q2FY22. EBITDA and PAT margins are 25 percent and 19.8 percent, respectively.
RITES operating revenue (consolidated), excluding other income, is up by 12.8 percent at ₹1264 crore in H1FY23 as against ₹1121 crore in H1FY22. Total revenue is ₹1321 crore as against ₹1166 crore in H1FY22 with Consultancy, Leasing, Turnkey segments and subsidiary REMC Ltd. registering growth. EBITDA and PAT stand at ₹361 crore and ₹285 crore against ₹324 crore and ₹252 crore, respectively, in H1FY22 with EBITDA and PAT margins remaining the range-bound.
Consultancy business continues to provide the highest revenue to the company and achieved the revenue of ₹279 crore, up by 11.2 percent, with margins at 43.7 percent in Q2FY23. Leasing revenue is ₹36 crore in Q2FY23 as against ₹33 crore in Q2FY22 with profit margins of 36.3 percent. Turnkey revenue stands at ₹239 crore against ₹110 crore in Q2FY22, a jump by 117 percent, on account of the initiation of phase-II of turnkey works. The Export segment has shown a dip as lesser supplies were scheduled for this quarter and higher exports were accounted in Q2FY22. Sequentially, there is a decrease in Foreign Consultancy as some projects are yet to reach the billing stage.
The Board of Directors has declared the second interim dividend of ₹4.5 per share amounting ₹108 crore for FY23 which is 45 percent of the paid-up capital. The record date for the purpose of payment of dividend is November 18, 2022.
During the Q2FY23, the company has secured more than 70 orders (including extension of works) worth ₹440 crore, thereby maintaining a healthy order book of ₹5008 crore as on September 30, 2022.
Commenting on the growth prospects, Mr. Mithal said, “We will continue to build on this trajectory by leveraging our strength in niche areas to newer geographies under the vision of ‘RITES Videsh’ as also furthering our initiatives in the domestic arena, including exploring new opportunities by the ‘RITES Sustainability’ vertical.
RITES Limited is a Miniratna (Category – I) Schedule ‘A’ Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The company has an experience spanning 48 years and undertaken projects in over 55 countries in Asia, Africa, Latin America, South America, and Middle East region.
