RITES logs highest-ever operating revenue of ₹2,575 crore

RITES Ltd, a leading transport infrastructure consultancy and engineering firm, on Tuesday announced its standalone and consolidated financial results for the quarter and year ended on March 31, 2022. 

Commenting on the results, Rahul Mithal, the chairman and managing director of the PSU, said, “Our focus on sectoral excellence, identifying new trade areas while being more mindful about Transforming to Green, has helped us garner a total revenue of ₹2745 for the FY22, up by 36.9% from FY21. It gives us the confidence that the positive momentum will continue if we keep pioneering new solutions, establishing value-based offerings, and instituting operational excellence.”

The fourth quarter total revenue of RITES rose by 20.9% to ₹765 crore as against ₹632 crore in Q4FY21. The PSU has attributed the results to strong performance in consultancy, leasing and exports.

Meanwhile, the operating revenue, excluding other income, soared by 21.5% to ₹744 crore in Q4FY22.

The company announced that it’s EBITDA, excluding other income, has shown a growth of 12.8% at ₹187 crore while the Profit After Tax (PAT) remained flat at ₹130 crore against ₹135 crore in Q4FY21 due to higher tax outflow based on recent clarifications.

During the quarter, the consultancy revenue has increased by 8.8% on increase in foreign consultancy and QA, while maintaining healthy margins of 44.3%. Leasing and exports have also shown a growth of 16.7% and 161.3%, respectively.

Reaching the pre-Covid level, the total consolidated revenue of FY22 stood at ₹2,745 crore against ₹2,005 crore in FY21, registering a growth of 36.9%. Similarly, the operating revenue, excluding other income, stood at ₹2,662 crore against ₹1,905 crore in FY21.

The company highlighted that its overall growth in revenue mirrored the growth in all segments except turnkey, which it said has started picking up from January-March 2022 quarter.

During the year, the export of coaches and DEMUs to CFM Mozambique was started and the supply of 160 coaches and 2 DEMUs to Sri Lanka was completed, as a result exports have recorded ₹966 as revenue.

After declaring three interim dividends of ₹48 crore ( ₹2 per share), ₹96 crore ( ₹4 per share) and ₹180 crore ( ₹7.5 per share) for FY22, the Board of Directors of RITES has recommended a final dividend of ₹ 84 crore ( ₹3.5 per share) for 2022 fiscal year. This dividend will take the dividend payout of the company to 82.2% for the FY22 based on the PAT of FY22.

On the growth prospects, Mithal said, “We’ll continue to channelise our energies on leveraging our distinctive brand identity of being a single-window service provider while evolving to be Future Ready. Our endeavour will always be to follow the mantra – Not just more of the same, but much more of the new.”