RITES Q2 net profit jumps 115 per cent to Rs 233 crore on corporate rate cut
Nov 13, 2019
Gurugram (Haryana) [India], Nov 13: Government-owned RITES Ltd said on Wednesday that recent cut in corporate tax rates helped boost its standalone operational profit after tax of Rs 233 crore in the second fiscal quarter, up 115 per cent from Rs 108 crore in the corresponding period of previous year.
The transport infrastructure consultancy and engineering consultancy company reported a 92 per cent jump in its profit before tax of Rs 317 crore in Q2 FY20 from Rs 166 crore in Q2 FY19. Earnings before interest, tax, depreciation and amortisation (EBITDA) moved up 88 per cent to Rs 328 crore from Rs 174 crore in the same period. EBITDA and profit after tax margins stand at 37.5 per cent and 26.6 per cent respectively.
Total standalone revenue went up by 88 per cent to Rs 874 crore. Similarly, operational revenue excluding other income increased by 71 per cent to reach Rs 726 crore.
“RITES has reported its highest-ever quarterly and half-yearly performance driven by growth in exports, turnkey works and leasing, besides consultancy continue to be the key segment,” said Chairman and Managing Director Rajeev Mehrotra. “Our focus on exports has been productive and we are seeing steady upward momentum from clients,” he said.
Consultancy business provided revenue of Rs 255 crore against Rs 284 crore in Q2 FY19. The lower revenue was largely due to prolonged monsoon affecting project management consultancy fees and some projects not reaching their billing stages. The consultancy business was able to register a gross profit margin of 44.5 per cent.
Leasing business showed a growth of 24 per cent with revenue of Rs 30 crore as against revenue of Rs 24 crore in Q2 FY19. It came with sustained profits margins of 42.3 per cent. The company has initiated a process for acquiring 10 more locomotives for leasing business which will take the total number to 70.
Exports revenue during the Q2 FY20 stands at Rs 262 crore against Q2 FY19 exports of Rs 1 crore. The revenue from turnkey construction projects increased by 54 per cent at Rs 179 crore.
Other income has increased from Rs 39 crore to Rs 148 crore, marking a growth of 278 per cent in Q2 FY20 over Q2FY19. This income includes receipt of the final settlement amount of Rs 91 crore from a foreign client.
“Through the first half of FY20, RITES has provided a good mix of growth and profitability,” said Mehrotra. “These results are an indicator that we are on track to achieve our performance guidance for FY20.”
Earnings per share stood at Rs 9.31 in Q2 FY20 as compared to Rs 4.33 in Q2 FY19
The company has undertaken projects in over 55 countries including Asia, Africa, Latin America, South America, and Middle East regions. RITES Ltd is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia, and Indonesia).
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