RITES, a prominent Transport Infrastructure Consultancy and Engineering firm, has disclosed its standalone and consolidated financial results for the first quarter of FY24. During this period, the company experienced a 10% decline in operating revenue on a consolidated level, reaching 544 crore.
The total revenue also saw a decrease, falling from 637 crore in Q1FY23 to 563 crore in Q1FY24. The EBITDA and PAT stood at 161 crore and 120 crore, respectively, maintaining stable margins of 29.6% and 21.3%. This dip in income can be attributed to reduced exports and lower revenue from quality assurance services.
Despite the overall decline, the Consultancy division remained the primary revenue driver, generating 270 crore with an impressive margin of 44.2%. Additionally, the leasing revenue accounted for 31 crore, while the turnkey revenue reached 165 crore.
RITES also declared its first interim dividend of 3.75 rupees per share, amounting to Rs 90 crore.
Significant setback in exports
However, the Export section faced a significant setback, experiencing a substantial 52.1% drop, resulting in a revenue of 38 crore. Nevertheless, RITES is optimistic about the potential for continuous revenue growth in this segment by the end of the fiscal year.
Moreover, the company’s order book demonstrated resilience in Q1FY24, securing over 70 orders (including extensions of existing projects) valued at more than 300 crore. As of 30th June 2023, RITES possesses a robust order book worth 5702 crore.
Way forward for RITES
Regarding future growth prospects, Mithal expressed confidence in building upon this performance in the upcoming quarters.
The company aims to capitalize on emerging opportunities in the Project Consultancy stream and the Export business, aligning with their vision for the financial year ahead.
