RITES Limited , a leading transport infrastructure consultancy and engineering company, reported flat results for the first quarter, while maintaining a positive outlook for the future. The company's Chairman and Managing Director, Rahul Mithal, shared insights during an investor conference call.

Order Book and Revenue Outlook

RITES reported an order book of INR 8,800.00 crore, with approximately INR 3,500.00 crore added from over 300 orders in the last two quarters. Mithal emphasized that the company is now focusing on expeditious execution, with revenue flow expected to start in the latter part as orders move from the design phase to execution.

Segment Performance

The consultancy segment showed a 7% growth, contributing to an 8% increase in EBITDA. This growth in high-margin consultancy orders has helped offset challenges in other areas.

Export Orders

RITES has commenced export deliveries, with two locomotives shipped to Mozambique in early July. Revenue recognition for these exports is expected in the following quarter. The company is also working on a significant order from Bangladesh, with the first rake of 20 coaches aimed for delivery before the end of the fiscal year.

Financial Guidance

Despite flat Q1 results, RITES maintains its guidance to surpass the previous year's performance. The company aims for:

• EBITDA margins around 20%
• PAT margins around 15%

Cash Position

As of the end of Q1, RITES reported:

Future Prospects

1. Turnkey Projects: RITES expects turnkey segment contribution to remain around 30% of total revenue. The company emphasizes that these are primarily consultancy-based projects rather than EPC construction.

2. REMCL (Railway Energy Management Company Limited): RITES sees potential for at least 20% scalability in REMCL over the next year, driven by open access for power procurement in more states and green energy initiatives.

3. Export Orders: The company is working on modifying Indian Railways' spare diesel locomotives for export to African countries, opening up potential for over 100 locomotives.

4. Quality Assurance: This segment has shown improvement, with two-thirds of revenue now coming from non-Indian Railways clients.

Dividend Outlook

As a debt-free company with low CAPEX requirements, RITES aims to maintain its high dividend payout ratio, which has been around 95% in recent years.

Mithal concluded, "The focus now is on expeditious execution so that this young order book starts generating revenue, whether it is from the export vertical or the consultancy or turnkey. By the later part of the fiscal year, we should see a sequential improvement and a substantial improvement on an annual basis, surpassing last year's figures."

RITES Limited continues to leverage its expertise in transport infrastructure consultancy while exploring new avenues for growth in exports and green energy initiatives.

RITES Limited , a leading transport infrastructure consultancy and engineering firm, has announced its financial results for the first quarter, showcasing robust performance and a healthy order book. The company has also set an ambitious target to secure more than one order per day as part of its growth strategy.

Financial Highlights

For Q1, RITES reported consolidated revenue from operations of ₹489.74 crore, marking a slight increase from ₹485.76 crore in the corresponding quarter of the previous year. The company's profit after tax (PAT) stood at ₹90.89 crore, showing a marginal improvement from ₹90.44 crore in the same period last year.

Strong Order Book

One of the key highlights of RITES' performance is its substantial order book, which stands at ₹8,790.00 crore as of June 30. This impressive figure underscores the company's strong market position and provides long-term revenue visibility.

Business Segment Performance

RITES has reported growth in its consultancy and leasing business segments:

Consultancy Segment

• Remains the highest revenue contributor
• Achieved a revenue of ₹262.00 crore
• Maintained robust margins of 32.20%

Leasing Segment

• Generated a revenue of ₹43.00 crore
• Maintained healthy margins of 38.40%
• Operates a fleet of 88 locomotives

Export Momentum

The company is maintaining export momentum, which is expected to provide long-term revenue visibility and support its overall growth trajectory. Notably, the export of locomotives to Mozambique has commenced in Q2, indicating positive developments in the company's international business.

Management Commentary

Mr. Rahul Mithal, Chairman and Managing Director of RITES Limited, commented on the results, stating, "The results have been flat, underscoring the need for expeditious execution, with our Order Book being young; having secured about 300 orders totalling to ₹3,500.00 crore in the last 2 quarters."

Growth Strategy

A RITES company executive outlined the organization's goal to secure more than one order per day as part of its growth strategy. This target represents a significant improvement compared to the previous year's performance and aligns with the company's ambition for substantial growth.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹1.30 per share, amounting to ₹62.50 crore. The record date for dividend payment is set as August 12.

Future Outlook

Looking ahead, Mr. Mithal expressed optimism about the company's growth prospects, saying, "While maintaining the trend of now more than 1 order a day, concerted efforts will be made for steady sequential growth, aiming for a substantial improvement over last year."

RITES' strong order book, growth in key business segments, focus on export opportunities, and ambitious order acquisition target position the company well for future growth in the infrastructure and engineering consulting sector.