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 March 31, 2021.
Commenting on the results, Rajeev Mehrotra, Chairman and Managing Director, RITES Limited, said, “Given the testing scenario, our focus remained on project delivery & execution which helped us to register Quarter to Quarter operational revenue growth in every quarter of FY21. Our Q4FY21 results surpassed the Q4FY20, but were not enough to make up for the shortfalls in first three quarters.”
Revenue and profit growth
Q4FY21 total revenue is up by 6.1 per cent to Rs 632 crore as against Rs 596 crore in Q4FY20 and has shown a QoQ growth of 36.2 per cent. Revenue improved due to growth in consultancy, exports and turnkey. Similarly, operating revenue, excluding other income, is up by 12 per cent to Rs 619 crore in Q4FY21. EBITDA, excluding other income, and PAT has shown a growth of 17.3 per cent and 2.4 per cent respectively and sustained margins at 27.8 per cent and 21.3 per cent respectively. During the quarter, exports started for cape gauge locomotives to Mozambique and coaches to Sri Lanka and as a result, exports have shown a YoY growth of 54.5 per cent. However, revenue from some consignments which were ready for shipment is spilling over to Q1FY22. Consultancy and leasing remained almost flat and seen revenue reaching towards the pre-COVID levels.
FY21 (consolidated)
FY21 total consolidated revenue stands at Rs 2005 crore against Rs 2735 crore in FY20. Similarly, the operating revenue, excluding other income, stand at Rs 1860 crore against Rs 2474 crore in FY20. The decrease is attributable to a decrease in exports by Rs 448 crore, disruptions in the supply chain and restrictions imposed due to pandemic and one-time settlement income of Rs 91 crore during FY20. Excluding exports, the fall in operating revenue is 8.7 per cent. EBITDA (excluding other income) and PAT stands at Rs 505 crore and Rs 444 crore, respectively, against Rs 668 crore and Rs 633 crore respectively in FY20. EBITDA and PAT margins are sustained at 27.2 per cent and 22.2 per cent respectively due to timely cost reduction measures.
FY21 (standalone)
Similarly, standalone revenue also got impacted due to disruptions in the supply chain and restrictions imposed due to pandemic and total standalone revenue now stands at Rs 1947 crore against Rs 2665 crore in FY20. EBITDA (excluding other income) and PAT stands at Rs 460 crore and Rs 424 crore, against Rs 602 crore and Rs 596 crore respectively in FY20. In consultancy and turnkey, the margins were maintained at 44.2 per cent and 3.8 per cent however exports and leasing margins moderated to 19 per cent and 35.6 per cent respectively, due to fewer exports and reduced locomotive requirement in H1FY21.
Dividend
After declaring two interim dividends of Rs 120 crore (Rs 5 per share) and Rs 96 crore (Rs 4 per share) for FY21, the Board of Directors has recommended a final dividend of Rs 96 crore (Rs 4 per share) for FY21 which is 40 per cent of paid-up capital. This dividend will take the dividend payout of the company to 73.6 per cent for FY21 based on the PAT of FY21.
Performance of our subsidiary and JV
Revenue from our subsidiary REMC Ltd stands at Rs 69 crore against Rs 81 crore in the previous financial year. Profit after tax stands at Rs 24 crore against Rs 35 crore in FY20. Consultancy revenue from this subsidiary got impacted due to less traction power requirement by railways during FY21, however, power generation revenues are up by 46.9 per cent to Rs 16 crore in FY21.In FY21, our wagon manufacturing joint venture, SRBWPL, revenue and profit stands at Rs 161 crore and Rs 2.5 crores against Rs 265 crore and Rs 15.5 crores respectively in FY20. In our Joint Venture IRSDC, revenue and profit stand at Rs 39 crore and Rs 5 crores respectively against Rs 50 crore and Rs 5 crores in FY20.
Growth outlook for FY21
Commenting on the outlook, Mehrotra said, “We can deliver orders in hand in a timely manner but post-COVID normalcy will set the pace for execution. We are also aligned to seize more opportunities for growth in coming years.”