Gurugram, February 9, 2023: RITES Ltd. (NSE: RITES, BSE: 541556), the leading Transport Infrastructure Consultancy and Engineering firm, announced its standalone and consolidated financial results for the Quarter and nine-month ended on December 31st, 2022.
- § Sequential growth of 3% & 8% in Revenue from Operations and core EBITDA, respectively
- ₹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 ₹14.5/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
- ₹2024 crore against ₹1958 crore
- ₹555 crore against ₹519 crore
- ₹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 3rdinterim dividend of Rs 6 per share, we continue to honour our commitment to our shareholders.”
Financial Performance in Q3FY23
RITES operating revenue, excluding other income, stands at ₹677 crore in Q3FY23 as against ₹775 crore in Q3FY22. 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 rolling 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-bound as high-margin consultancy stream of revenue balanced out the low-margin turnkey revenue.
Operating revenue, excluding other income, stands at ₹651 crore in Q3FY23 against ₹755 crore in Q3FY22. Total 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 Q3FY22.
Financial Performance in 9MFY23
RITES operating revenue (consolidated), excluding other income, stands at ₹1941 crore in 9MFY23 as against ₹1896 crore in 9MFY22, up by 2.4%. Total revenue is ₹2024 crore as against ₹1958 crore in 9MFY22 with Consultancy, Leasing, Turnkey segments and subsidiary REMC Ltd. registering growth. EBITDA and PAT stand at ₹555 crore and ₹432 crore, up by 6.8% and 9.1%, respectively, from 9MFY22.
Consultancy business continues to provide the highest revenue to the company and achieved the revenue of₹286 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 Foreign Consultancy from 10% in 9MFY22 to 12% in 9MFY23.
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, 2023.
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.
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 projects 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.”