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 Year ended on 31st March, 2020.
Revenue and Profit Growth Consolidated
RITES total consolidated revenue has gone up by 22.1% to Rs 2,735 crore. Similarly, the operating revenue, excluding other income, increased by 20.9% and reached Rs 2,474 crore. Consolidated EBITDA and PAT have gone up by 19.6% and 29.3% to Rs 929 crore and Rs 633 crore, respectively, over FY19. This significant growth came with sustained EBITDA and PAT margins which stand at 34% and 23.2% respectively. These margins are the result of strategic focus on order execution and increased human resource productivity.
Standalone
RITES total standalone revenue has gone up by 23.1% to Rs 2,665 crore. Similarly, the operating revenue, excluding other income, increased by 21.9% and reached Rs 2,401 crore in FY20. EBITDA and PAT have gone up by 21.6% and 34.1% to Rs 867 crore and Rs 596 crore, respectively, over FY19. Consultancy and leasing helped to maintain profit margins and EBITDA and PAT margin stand at 32.5% and 22.4%, respectively during the year. Key performance was in Exports which saw a jump of 161.6%. Consultancy revenue remained almost flat because of various reasons including disruption in March’20 and certain foreign projects suffered due to lockdown in those countries. Other than exports, leasing and turnkey also saw high growth of 16.5% and 18.7% respectively.
Q4FY20 (standalone)
Q4FY20 total revenue stands at Rs 596 crore as against Rs 765 crore in Q4FY19. Revenue moderated during the quarter due to lockdown and major exports shipments were already completed till Q3FY20. Similarly, the operating revenue, excluding other income, stands at Rs 553 crore in FY20. EBITDA and PAT margin stand at 31.9% and 22%, respectively which remained intact on better margins from consultancy.
Performance of our Subsidiary and JV
Revenue from our subsidiary REMCL has remained almost flat amounting to Rs 81 crore against Rs 83 crore in the previous financial year. PBT has shown a slight growth of 0.6% with Rs 50 crore against Rs 49 crore in FY19. Revenue from this subsidiary got impacted in Q4FY20 due to low demand from railways during lockdown and maintenance work for wind mills.
Our wagon manufacturing Joint Venture, SRBWPL, has achieved a profit of Rs 16 crore with revenue of Rs 265 crore during FY20. The wagon manufacturing joint venture has produced and rehabilitated 1066 wagons during the last financial year.
Commenting on the results, Mr. Rajeev Mehrotra, Chairman and Managing Director, RITES Limited, said, “Notwithstanding the challenging business environment, I am pleased to share that our company has demonstrated sustained growth momentum across the segments during FY20 and again surpassed the revenue and profitability targets. Rolling stock exports remained our strategic growth area duly supported with Govt of India’s Make in India program. We achieved a major success by securing an export order of Rs 706 crore from Mozambique for cape gauge locomotives and coaches. We plan to develop products for standard gauge countries too. “
Dividend
After declaring 2 interim dividends of Rs 150 crore (Rs 6 per share) and Rs 100 crore (Rs 4 per share) for FY20, Board of Directors have recommended a final dividend of Rs 150 crore (Rs 6 per share) for FY20 which is 60% of paid-up capital.
This dividend will take the dividend payout of the company to 67% for the FY20 based on the PAT of FY20 and it will make it the highest ever annual dividend declared by the company.