RITES Q1 results: Net profit grows 20% to Rs 78 crore

New Delhi: State-owned RITES Ltd on Thursday posted about 20 per rise in its consolidated profit after tax (PAT) at Rs 77.86 crore during the quarter ended June 30, helped by reduced expenditure. During the April-June period of 2020-21 fiscal, the company had clocked Rs 64.99-crore PAT, it said in a regulatory filing.
Its total income in the said quarter reduced to Rs 377.26 crore, from Rs 379.04 crore in the year-ago quarter.

The company's total expenditure was at Rs 271.66 crore, lower compared to Rs 289.78 crore in the corresponding quarter of preceding financial year.

In a statement, Gopi Sureshkumar Varadarajan, Director Projects and Chairman & Managing Director (Additional Charge), said, "Q1FY22 performance reflects that the company's sustainable and well-diversified business model held it in good stead in managing short-term challenges. I am pleased that we have been able to increase our profits and sustain margins, despite the disruptions caused by the second wave of Covid."

The board of directors has also declared an interim dividend of Rs 2 per share amounting 48 crore for FY 2021-22, the company statement said.

The consultancy business continued to provide highest revenue at Rs 204 crore mark, which was a year on year growth of 10.6 per cent. The margins rationalised due to Covid restriction during the quarter and less quality assurance revenue, however revenue from foreign projects has started showing growth, it said.

Revenue from leasing business was at Rs 32 crore, while turnkey revenue during the first quarter was Rs 95 crore.

With about 45 new and extension of the orders worth around Rs 1,000 crore, the company has been able to achieve its highest ever order book of Rs 6,925 crore as on June 30, 2021, the statement said.

Varadarajan said, "We are continuously adding on to our order book and confident of achieving steady growth on account of efficient order execution." RITES is 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 recently announced bagging its 'highest ever' Rs 4,027-crore order from the Ministry of Railways.