RITES Limited
Corporate office: RITES Bhawan, No.1, Sector 29, Gurugram (Haryana) – 122001
Registered Office: SCOPE Minar, Laxmi Nagar, Delhi – 110092
CIN: L74899DL1974GOI007227
Date: June 30, 2020
RITES FY20 Revenue up by 22.1%, PAT up by 29.3% Final dividend of Rs 6 per share
Chennai, 30th June, 2020: RITES Ltd. (NSE: RITES, BSE: 541556), the leading Transport Infrastructure Con su ltancy and Engineering firm, announced its standalone and consolidated financial results for the Quarter and Year ended on 31st March, 2020.
Highlights for FY20 Standalone Financials
- Total Revenue up by 23.1% to Rs 2665 crore, highest ever
- Achieved growth of 9% against targeted growth of 17% in operating revenue
- Exports increased by 161.6% to Rs 541 crore
- Profit After Tax up by 34.1% to Rs 596 crore, highest ever
- Final Dividend of Rs 6 per share recommended by Board of Directors
- Highest ever annual dividend of Rs 400 crore
Highlights for FY20 Consolidated Financials
- Total Revenue up by 22.1% to Rs 2735 crore, highest ever
- Profit After Tax up by 29.3% to Rs 633 crore, highest ever
- Order Book as on 31.03.2020 stands at Rs 6223 crore
- EPS at Rs64 as compared to last year’s Rs 18.78 up by 31.2%
Highlights for Q4 FY20 Standalone Financials
- Total Revenue stands at Rs 596 crore as against Rs 765 crore in Q4FY19
- Profit After Tax stands at Rs 131 crore as against Rs 133 crore in Q4FY19
- Margins maintained across segments
Highlights for Q4 FY20 Consolidated Financials
- Total Revenue stands at Rs 614 crore as against Rs 789 crore in Q4FY19
- Profit After Tax stands at Rs 144 crore as against Rs 150 crore in Q4FY19
- EPS at `56 as compared to last year’s `5.81
Revenue and Profit Growth
Consolidated
RITES total consolidated revenue has gone up by 22.1% to Rs 2735 crore. Similarly, the operating revenue, exc luding other income, increased by 20.9% and reached Rs 2474 crore. Consolidated EBITDA and PAT have gone up by 19.6% and 29.3% to `929 crore and Rs 633 crore, respectively, over FY19. This significant growth came wi th sustained EBITDA and PAT margins which stand at 34% and 23.2% respectively. These margins are the result of strategic focus on order execution and increased human resource productivity.
Standalone
RITES total standalone revenue has gone up by 23.1% to Rs 2665 crore. Similarly, the operating revenue, exclu ding other income, increased by 21.9% and reached `2401 crore in FY20. EBITDA and PAT have gone up by 21. 6% and 34.1% to `867 crore and `596 crore, respectively, over FY19. Consultancy and leasing helped to maintain profit margins and EBITDA and PAT margin stand at 32.5% and 22.4%, respectively during the year. Key perf orm ance was in Exports which saw a jump of 161.6%. Consultancy revenue remained almost flat because of various reasons including disruption in March’20 and certain foreign projects suffered due to lockdown in those coun tries. Other than exports, leasing and turnkey also saw high growth of 16.5% and 18.7% respectively.
Q4FY20 (standalone)
Q4FY20 total revenue stands at `596 crore as against `765 crore in Q4FY19. Revenue moderated during the quarter due to lockdown and major exports shipments were already completed till Q3FY20. Similarly, the op erating revenue, excluding other income, stands at `553 crore in FY20. EBITDA and PAT margin stand at 31.9% and 22%, respectively which remained intact on better margins from consultancy.
Performance of our Subsidiary and JV
Revenue from our subsidiary REMCL has remained almost flat amounting to `81 crore against `83 crore in the pr evious financial year. PBT has shown a slight growth of 0.6% with `50 crore against `49 crore in FY19. Revenue from this subsidiary got impacted in Q4FY20 due to low demand from railways during lockdown and maintenan ce work for wind mills.
Our wagon manufacturing Joint Venture, SRBWPL, has achieved a profit of `16 crore with revenue of `265 crore during FY20. The wa gon manufacturing joint venture has produced and rehabilitated 1066 wagons during the last financial year.
Commenting on the results, Mr. Rajeev Mehrotra, Chairman and Managing Director, RITES Limited, said, “No twithstanding the challenging business environment, I am pleased to share that our company has demo nstrated sustained growth momentum across the segments during FY20 and again surpassed the revenue and profi tabi lity 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 `706 crore from Mozambique for cape gauge locomotives and coaches. We plan to develop products for standard gauge countries too. ”
Dividend
After declaring 2 interim dividends of `150 crore (`6 per share) and `100 crore (`4 per share) for FY20, Board of Directors have recommended a final dividend of `150 crore (`6 per share) for FY20 which is 60% of paid-up cap ital. This dividend will take the dividend payout of the company to 67% for the FY20 based on the PAT of FY20 and it will make it the highest ever annual dividend declared by the company.
Growth Outlook for FY21
Commenting on the outlook, Mr. Mehrotra said, “The Company has successfully surpassed the guidance for FY20. Some uncertainties have emerged in recent times due to Covid-19, which may impact the business ope rations in FY21 but sufficient order book, diversified business segments and opportunities in infrastructure sector at domestic level as well as abroad are expected to help in quick recovery and future business growth.”
About RITES Limited:
RITES Limited is a Miniratna (Category – I) Schedule ‘A’ Public Sector Enterprise and a leading player in the tra nsport consultancy and engineering sector in India, having diversified services and geographical reach. The co mpany has an experience spanning 46 years and undertaken projects in over 55 countries in Asia, Africa, Latin America, South America and Middle East region. RITES Limited is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).
