RITES records highest-ever revenue at Rs 16.6 bn, net increases 7.8%

At Rs 3.63 billion, railway subsidiary RITES Ltd has posted a 7.8 per cent increase in net profit in 2017-18 over the previous financial year.

RITES has recorded its highest-ever revenue of Rs 16.67 billion on consolidated basis, while its operational revenue recorded a growth of 11.2 per cent over FY17. 

The increase in profit was achieved even after absorbing the full-year pay revision impact and as against a higher base in FY17 due to the sale of non-current investment, RITES said in its statement. 

The company’s FY18 PAT (profit after tax) has increased by 29 per cent if “the impact of sale of non-current investment is adjusted in FY17 PAT”, RITES said. 

This was the first public announcement of results after the company got listed on 2 July. 

In consultancy business, the company has achieved a revenue of Rs 10.15 billion with a growth of 22 per cent over FY17. 

The revenue from turnkey construction projects has also gone up by Rs 1.15 billion. RITES board of directors had recommended a final dividend of Rs 400 million (Rs 2 per share) for FY18, which was 20 per cent of paid-up capital.

Commenting on FY19 outlook, Rajeev Mehrotra, RITES Chairman and Managing Director, said, “(The) Company has a strong order book of Rs 55.17 billion 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 Rs 18.35 billion, up by 22 per cent from FY18.”

RITES had recently secured a major export order of Rs 5.67 billion for the 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.