RITES Ltd., the leading Transport Infrastructure Consultancy and Engineering firm, announced its standalone and consolidated financial results for the Quarter and nine-month ended on December 31st, 2022.
Commenting on the results, Mr. Rahul Mithal, Chairman and Managing Director, RITES Limited, said, “The USP of our diversified business model was again evident in this quarter with a sequential growth as well as 9% growth in PAT in the 9-month period. At the same time, the margins were maintained by capitalising on our core strength — Consultancy, which grew by 21% in the 9-month period. With a declaration of the 3rd interim dividend of Rs 6 per share, we continue to honour our commitment to our shareholders.”
RITES operating revenue, excluding other income, stands at ₹677 crore in Q3FY23 as against ₹775 crore in Q3FY22. Total revenue is ₹703 crore as against ₹792 crore in Q3FY22. Sequentially, there is a growth of 3% in both the total and operating revenue. The decrease in the YoY revenue is mainly attributed to the lesser export of rolling stock during the quarter. EBITDA and PAT stand at ₹194 crore and ₹147 crore against ₹195 crore and ₹144 crore, respectively, in Q3FY22. EBITDA and PAT margins at 28.6% and 20.9%, respectively, remained range-bound as high-margin consultancy stream of revenue balanced out the low-margin turnkey revenue.
Operating revenue, excluding other income, stands at ₹651 crore in Q3FY23 against ₹755 crore in Q3FY22. Total standalone revenue is ₹676 crore against ₹771 crore in Q3FY22. EBITDA and PAT, with respective margins of 26.3% and 19.5%, stand at ₹171 crore and ₹132 crore against ₹179 crore and ₹134 crore, respectively, in Q3FY22.
RITES operating revenue (consolidated), excluding other income, stands at ₹1941 crore in 9MFY23 as against ₹1896 crore in 9MFY22, up by 2.4%. Total revenue is ₹2024 crore as against ₹1958 crore in 9MFY22 with Consultancy, Leasing, Turnkey segments and subsidiary REMC Ltd. registering growth. EBITDA and PAT stand at ₹555 crore and ₹432 crore, up by 6.8% and 9.1%, respectively, from 9MFY22.
Consultancy business continues to provide the highest revenue to the company and achieved the revenue of ₹286 crore, up by 16.9%, with margins at 45.5% in Q3FY23. Leasing revenue remains at ₹35 crore in Q3FY23, up by 9.7%, with margins of 32.8%. Turnkey revenue stands at ₹236 crore with a jump of 115% on account of pick-up in execution. The Export segment has shown a dip as lesser supplies were scheduled for this quarter.
With the continuous push to our strategic ‘RITES Videsh’ initiative, there is a steady increase in the share of Foreign Consultancy from 10% in 9MFY22 to 12% in 9MFY23.
The Board of Directors has declared the third interim dividend of ₹6 per share amounting ₹144 crore for FY23 which is 60% of the paid-up capital. The record date for the purpose of payment of dividend is February 17, 2023.
During the Q3FY23, the company has secured more than 65 orders (including extension of works) worth ₹1200 crore, thereby maintaining a healthy order book of ₹5513 crore as on December 31st, 2022.
Commenting on the growth prospects, Mr. Mithal said, “With a healthy order book which grew by 10% this quarter, we are well positioned to continue to improve upon our performance. Further, the impetus given to infrastructure projects with the high Capex grant in the Budget, is a tailwind for us and we are strongly placed to leverage this opportunity in the coming FY.”
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.
