Q2 FY'25: RITES posts net profit of Rs 83 crore; declares interim dividend

New Delhi: RITES Limited, a premier player in transport infrastructure consultancy and engineering, announced its financial results for the quarter (Q2) ending September 30. The company reported consolidated revenue of Rs 562 crore and a net profit (PAT) of Rs 83 crore. Additionally, the Board declared a second interim dividend of Rs 1.75 per share, reflecting a payout ratio of 97.9 percent.

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Sequentially, RITES’ standalone revenue saw an impressive 16.5 percent growth, rising from Rs 475 crore to Rs 554 crore. The company also maintained a steady inflow of new projects, securing over 90 orders worth Rs 729 crore during the quarter, which brings its total order book to a robust Rs 6,581 crore. The announced dividend of Rs 1.75 per share has a record date of November 15.

For Q2 FY'25, RITES reported consolidated operating revenue of Rs 541 crore, with EBITDA reaching Rs 107 crore, reflecting a margin of 19.9 percent. The PAT for the quarter stood at Rs 83 crore, down from Rs 110 crore in Q2 FY'24. The year-on-year revenue decline is attributed primarily to reduced income from quality assurance and challenges faced in turnkey execution due to the monsoon season.

The half-year (H1 FY25) performance showed RITES’ total revenue at Rs 1,070 crore, a decrease from Rs 1,171 crore in H1 FY24. EBITDA for this period stood at Rs 215 crore with a margin of 21.0 percent, while PAT was recorded at Rs 173 crore, lower than the Rs 230 crore achieved in H1 FY24. This decrease was largely due to reduced export revenue and a decline in both quality assurance and international consultancy services.

In terms of segment performance, RITES’ consultancy segment continues to be the primary revenue driver, bringing in Rs 272 crore with a margin of 29.6 percent. Leasing revenue remained steady at Rs 35 crore, sustaining a margin of 31.9 percent, while turnkey projects contributed Rs 201 crore to the revenue. Export activity for the quarter was minimal.

RITES Chairman and Managing Director (CMD) Rahul Mithal, expressed optimism about the company’s growth prospects, emphasizing that the substantial order book reflects the company’s capability to secure new projects consistently. He highlighted that orders in Q2 alone surpassed the entirety of H1 from the previous fiscal year. "We are focused on sequential improvements while navigating the evolving business landscape," he said.

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