RITES' net profit declines by 15% to Rs 109 crore in Q3 FY25

New Delhi: RITES Limited, a leading transport infrastructure consultancy and engineering firm, has reported its standalone and consolidated financial results for the quarter ended December 31, 2024. The company has also declared a third interim dividend of Rs 1.9 per share, with a payout ratio of 96.1 percent.

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For Q3 FY25, RITES’ consolidated operating revenue stood at Rs 576 crore, while total revenue amounted to Rs 614 crore, marking a sequential growth of 9.3 percent from Rs 562 crore in the previous quarter. Consolidated EBITDA for the quarter was Rs 123 crore, with margins at 21.3 percent, and profit after tax (PAT) was Rs 109 crore, up from Rs 83 crore in the preceding quarter. However, on a year-on-year basis, total revenue dipped from Rs 700 crore in Q3 FY24, reflecting a 12.3 percent decline. The drop was attributed to lower revenue from quality assurance, a downturn in turnkey projects, and the absence of exports.

RITES’ standalone revenue for the quarter stood at Rs 592 crore, compared to Rs 678 crore in Q3 FY24. Standalone EBITDA and PAT were reported at Rs 90 crore and Rs 95 crore, respectively, with margins of 16.6 percent and 16.1 percent. Both metrics showed a decline from Rs 144 crore and Rs 119 crore, respectively, in the same quarter last year.

For the nine-month period ending December 31, 2024 (9M FY25), consolidated total revenue stood at Rs 1685 crore, down from Rs 1871 crore in 9M FY24. Operating revenue, excluding other income, was Rs 1602 crore, compared to Rs 1810 crore in the same period last year. EBITDA and PAT for 9MFY25 were Rs 338 crore and Rs 282 crore, respectively, with margins of 21.1 percent and 16.8 percent. The year-on-year decline was primarily due to reduced revenue from exports, the quality assurance business, and international consultancy projects.

Despite the revenue decline, RITES achieved its highest-ever order book of Rs 7978 crore as of December 31, 2024. The company secured over 110 orders worth Rs 1933 crore in Q3FY25 alone, nearly matching the total order value for the entire FY24. Commenting on this achievement, Rahul Mithal, Chairman and Managing Director of RITES, said, “Securing orders of more than Rs 1900 crore in just one quarter underscores our strategy to aggressively march ahead, leveraging our multisectoral strength and maintaining our USP of being a ‘1 order a day’ company.”

Segment-wise, the consultancy business contributed Rs 280 crore in revenue with margins at 34.1 percent, despite a decline due to lower quality assurance revenue. Leasing revenue stood at Rs 40 crore, maintaining margins of 35.9 percent. Turnkey revenue was Rs 223 crore, while no export revenue was recorded during the quarter.

The Board of Directors declared a third interim dividend of Rs 1.9 per share, amounting to Rs 91.31 crore. The record date for the dividend payment is February 1, 2025.

Looking ahead, Mithal emphasized RITES’ commitment to driving growth through its diversified offerings and robust order book. “This quarter’s performance reflects our ability to achieve steady progress sequentially, improving across all parameters,” he said.

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