RITES Ltd. (NSE: RITES, BSE: 541556), the leading Transport Infrastructure Consultancy
RITES Q3FY23 revenue ₹703 cr; PAT ₹147 cr
9MFY23 revenue ₹2024 cr; PAT ₹432 cr
Declares 3rd interim dividend of ₹6/share
Gurugram, February 9, 2023 : RITES Ltd. (NSE: RITES, BSE: 541556), the leading Transport Infrastructure Cons ultancy and Engineering firm, announced its standalone and consolidated financial results for the Quarter and nine-month ended on December 31st, 2022.
The Takeaways
- Sequential growth of 3% & 8% in Revenue from Operations and core EBITDA, respectively
- YoY Profit remains flat despite a dip in export revenue, a high-margin stream
- YoY core EBITDA Margin up from 23% to 26%
- Order Book of ₹5513 crore (as on 31.12.22), up by 10% from 30.09.22; secured 65+ orders worth ₹1200 crore in Q3FY23
- Declared 3rd Interim Dividend of ₹6/share, taking the total Interim Dividend to ₹5/share
Q3FY23 Consolidated Financials
- Total Revenue stands at ₹703 crore against ₹792 crore in Q3FY22
- EBITDA stands at ₹194 crore against ₹195 crore in Q3FY22
- Profit After Tax stands at ₹147 crore against ₹144 crore in Q3FY22
9MFY23 Consolidated Financials
- Total Revenue stands at ₹2024 crore against ₹1958 crore
- 7% growth in EBITDA, ₹555 crore against ₹519 crore
- 9% growth in PAT, ₹432 crore against ₹396 crore
Commenting on the results, Mr. Rahul Mithal, Chairman and Managing Director, RITES Limited, said, “The USP of our diversified business model was again evident in this quarter with a sequential growth as well as 9% growth in PAT in the 9-month period. At the same time, the margins were maintained by capitalising on our core strength — Consultancy, which grew by 21% in the 9-month period. With a declaration of the 3rd interim dividend of Rs 6 per share, we continue to honour our commitment to our shareholders.”
Financial Performance in Q3FY23
Consolidated
RITES operating revenue, excluding other income, stands at ₹677 crore in Q3FY23 as against ₹775 crore in Q3 FY22. Total revenue is ₹703 crore as against ₹792 crore in Q3FY22. Sequentially, there is a growth of 3% in both the total and operating revenue. The decrease in the YoY revenue is mainly attributed to the lesser export of roll ing stock during the quarter. EBITDA and PAT stand at ₹194 crore and ₹147 crore against ₹195 crore and ₹144 crore, respectively, in Q3FY22. EBITDA and PAT margins at 28.6% and 20.9%, respectively, remained range-bou nd as high-margin consultancy stream of revenue balanced out the low-margin turnkey revenue.
Standalone
Operating revenue, excluding other income, stands at ₹651 crore in Q3FY23 against ₹755 crore in Q3FY22. Tot al standalone revenue is ₹676 crore against ₹771 crore in Q3FY22. EBITDA and PAT, with respective margins of 26.3% and 19.5%, stand at ₹171 crore and ₹132 crore against ₹179 crore and ₹134 crore, respectively, in Q3 FY 22.
Financial Performance in 9MFY23
RITES operating revenue (consolidated), excluding other income, stands at ₹1941 crore in 9MFY23 as against ₹1 896 crore in 9MFY22, up by 2.4%. Total revenue is ₹2024 crore as against ₹1958 crore in 9MFY22 with Consulta ncy, Leasing, Turnkey segments and subsidiary REMC Ltd. registering growth. EBITDA and PAT stand at ₹555 cr ore and ₹432 crore, up by 6.8% and 9.1%, respectively, from 9MFY22.
Segments (Standalone)
Consultancy business continues to provide the highest revenue to the company and achieved the revenue of ₹2 86 crore, up by 16.9%, with margins at 45.5% in Q3FY23. Leasing revenue remains at ₹35 crore in Q3FY23, up by 9.7%, with margins of 32.8%. Turnkey revenue stands at ₹236 crore with a jump of 115% on account of pick-up in execution. The Export segment has shown a dip as lesser supplies were scheduled for this quarter.
With the continuous push to our strategic ‘RITES Videsh’ initiative, there is a steady increase in the share of For eign Consultancy from 10% in 9MFY22 to 12% in 9MFY23.
Dividend
The Board of Directors has declared the third interim dividend of ₹6 per share amounting ₹144 crore for FY23 which is 60% of the paid-up capital. The record date for the purpose of payment of dividend is February 17, 20 23.
Order Book
During the Q3FY23, the company has secured more than 65 orders (including extension of works) worth ₹1200 crore, thereby maintaining a healthy order book of ₹5513 crore as on December 31st, 2022.
Outlook
Commenting on the growth prospects, Mr. Mithal said, “With a healthy order book which grew by 10% this quarter, we are well positioned to continue to improve upon our performance. Further, the impetus given to infrastructure projec ts with the high Capex grant in the Budget, is a tailwind for us and we are strongly placed to leverage this opportunity in the coming FY.”
About RITES Limited:
RITES Limited is a Miniratna (Category – I) Schedule ‘A’ Public Sector Enterprise and a leading player in the tran sport consultancy and engineering sector in India, having diversified services and geographical reach. The compa ny has an experience spanning 48 years and undertaken projects in over 55 countries in Asia, Africa, Latin Amer ica, South America, and Middle East region.
DISCLAIMER : Certain statements that are made in the Press Release may be forward-looking statements. Such forward looking statements are subject to certain risks and uncertainties like significant changes in economic en vironment in India and overseas, tax laws, inflation, litigation, etc. Actual results might differ substantially from those expressed or implied. RITES Ltd. will not be in any way responsible for any action taken based on such stat ements and discussions; and undertakes no obligation to publicly update these forward-looking statements to re flect subsequent events or circumstances.
