RITES Q4 profit down 4% at Rs 143.93 cr; revenue falls to Rs 614.24 cr

RITES Ltd on Tuesday reported a 4.28 per cent decline in consolidated profit at Rs 143.93 crore for the quarter ended March 31, 2020.

The railways consultancy firm had posted a consolidated profit of Rs 150.38 crore in the corresponding quarter of previous fiscal, it said in a regulatory filing to the BSE.

Total revenue declined to Rs 614.24 crore during the quarter under review as against Rs 789.19 crore in the corresponding period of the previous fiscal.

Total expenditure also declined to Rs 422.38 crore as against Rs 568.21 crore in the year-ago period.

However, for fiscal year 2019-20, profit rose 29.29 per cent to Rs 633.26 crore as against Rs 489.77 crore in 2018-19.

 

The company, in a statement, said the revenue from subsidiary Railway Energy Management Company Ltd (REMCL) remained almost flat at Rs 81 crore against Rs 83 crore in the previous financial year.

Revenue from REMCL got impacted in Q4 FY20 due to low demand from railways during lockdown and maintenance work for wind mills, it said.

It said its wagon manufacturing joint venture, SAIL RITES Bengal Wagon Industry Private Limited (SRBWPL), achieved a profit of Rs 16 crore with revenue of Rs 265 crore during FY20.

The joint venture company produced and rehabilitated 1,066 wagons during the last financial year.

Commenting on the results, RITES Ltd Chairman and Managing Director Rajeev Mehrotra said, "Notwithstanding the challenging business environment, I am pleased to share that our company has demonstrated sustained growth momentum across the segments during FY20 and again surpassed the revenue and profitability targets.

"Rolling stock exports remained our strategic growth area duly supported with Govt of India's 'Make in India' program. We achieved a major success by securing an export order of Rs 706 crore from Mozambique for cape gauge locomotives and coaches. We plan to develop products for standard gauge countries too," he added.