Rites slipped 3.90% to Rs 675.45 after the company's consolidated net profit declined 14.24% to Rs 120.14 crore in Q3 FY24 as against Rs 140.09 crore recorded in Q3 FY23.
The PSU company said that the decline in profits can be attributed to decrease in revenue mainly from exports & quality assurance and competitive business environment in consultancy.
Revenue from operations rose marginally to Rs 682.89 crore in the quarter ended 31 December 2023 from Rs 677.34 crore posted in Q3 FY23.
Profit before tax slipped 14.32% year on year to Rs 170.84 crore during the quarter.
EBITDA stood at Rs 171 crore in the December quarter, down 11.86% YoY. EBITDA margin was at 25% in Q3 FY24 as against 28.7% recorded in the corresponding quarter previous year.
The consultancy business continues to provide the highest revenue to the company and achieved the revenue of Rs 302 crore with margins at 40.4%. It has shown a growth of 5.6% despite a fall in the quality assurance revenue.
Turnkey and leasing segments have given the highest-ever quarterly revenue with leasing revenue standing at Rs 37 crore with the margins of 40.2% and turnkey revenue at Rs 256 crore. However, exports revenue stands at Rs 58 crore during the quarter.
With the signing of an agreement for the supply of 10 locomotives with CFM Mozambique and RITES emerging L1 in a tender for the supply of 200 locomotives to Bangladesh Railways, revenue from the export stream is expected to pick up in FY25, said the company.
The company has secured more than 100 orders (including extension of works) worth more than Rs 612 crore in Q3 FY24, thereby achieving the target of being a one order a day company. The quarter ended with a healthy order book of Rs 5,496 crore.
Rahul Mithal, chairman and managing director, RITES, said, The sequential progress is in line with the direction that we had strategized in the beginning of the FY, in having received an export order after a long gap, sustained growth in our project consultancy revenue and steady growth in our EBITDA.
On the growth prospects, Mithal added, We will continue to aggressively grow across all sectors and effectively leverage the capex push on infrastructure development.
Meanwhile, the companys board declared third interim dividend of Rs 4.75 per share for FY24. The record date for the purpose of payment of dividend is 9 February 2024.
Rites, a Miniratna (Category-I) Schedule 'A' public sector enterprise, is a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. As of 31 December 2023, the Government of India held 72.20% stake in the company.
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