RITES Q2 net profit up by 112% at INR 237 crore

RITES Q2 report

Total Revenue for the quarter up by 85.8% at INR 888 crore.

RITES Ltd., the leading Transport Infrastructure Consultancy and Engineering firm, reported its standalone and consolidated financial results for the Quarter and Half Year ended on 30th September, 2019.

Highlights for Q2FY20 Standalone Financials

• Total Revenue up by 88.2% to `874 crore
• Operating Revenue up by 70.8% to `726 crore
• Profit Before Tax up by 91.6% to `317 crore
• Operating Profit up by 34.2% to `170 crore
• Profit After Tax up by 115% to `233 crore
• EPS at `9.31 as compared to previous period `4.33

Highlights for Q2FY20 Consolidated Financials

• Total Revenue up by 85.8% to `888 crore
• Operating Revenue up by 68.5% to `746 crore
• Profit Before Tax up by 88.5% to `326 crore
• Operating Profit up by 33.5% to `184 crore
• Profit After Tax up by 112% to `237 crore
• EPS at `9.3 as compared to previous period `4.31

Commenting on the results, Rajeev Mehrotra, Chairman and Managing Director, RITES Limited said “I am glad to share that 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. Our focus on exports has been productive and we are seeing steady upward momentum from clients.”

Revenue and Profit Growth for Q2FY20

Standalone

RITES total standalone revenue has gone up by 88.2% to `874 crore. Similarly, the operational revenue, excluding other income, has increased by 70.8% and reached `726 crore in Q2FY20. EBITDA and PAT have gone up by 88.1% and 115% to `328 crore and `233 crore respectively over Q2FY19. Operating Profits, excluding other income, has shown a growth of 34.2% over Q2FY19. EBITDA and PAT margin stand at 37.5% and 26.6% respectively.

Consolidated

RITES total consolidated revenue has gone up by 85.8% to `888 crore. Similarly, the operational revenue, excluding other income, has also shown a substantial growth of 68.5% and reached `746 crore in Q2FY20. Consolidated EBITDA and PAT have gone up by 84.0% and 112.0% to `339 crore and `237 crore respectively over Q2FY19. Operating Profits, excluding other income, has shown a growth of 33.5% over Q2FY19. EBITDA and PAT margin stand at 38.2% and 26.7% respectively.

Performance of standalone segments

Consultancy business has provided revenue of `255 crore against `284 crore in Q2FY19. The lower revenue is largely due to prolonged monsoon affecting project management consultancy fee and some projects not reaching their billing stages. The consultancy business has been able to register gross profit margin of 44.5%.

Leasing business has shown a growth of 23.8% over Q2FY19 with revenue of `30 crore as against revenue of `24 crore. The growth in leasing business has come with the sustained profits margins of 42.3%. The company has initiated process for acquiring 10 more locomotives for leasing business, which will take the number of locomotives to 70.

Exports revenue during the Q2FY20 stands at `262 crore against Q2FY19 exports of `1 crore. The supply of 6 DEMUs have been completed by the end of the 2nd quarter. The exports gross profit margin has been 26.1% during the quarter. The company has decided to develop a prototype cape gauge passenger coaches.

The revenue from turnkey construction projects has also increased by 53.7% over Q2FY19 and stands at `179 crore.

Other income has increased from `39 crore to `148 crore showing a growth of 278% in Q2FY20 over Q2FY19. This income includes receipt of final settlement amount of `91 crore from a foreign client during Q2FY20.

Performance of H1FY20

RITES total standalone revenue has gone up by 71.0% to `1423 crore in H1FY20. Similarly, the operational revenue, excluding other income, has increased by 69.3% and reached `1245 crore in H1FY20. EBITDA and PAT have gone up by 57.6% and 72.0% to `479 crore and `325 crore respectively over Q2FY19.

Further commenting on performance, Mr. Mehrotra said “Through the first half of FY20, RITES has provided a good mix of growth & profitability. These results are an indicator that we are on track to achieve our performance guidance for FY20.”