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Business Standard
17-05-2025
- Business
- Business Standard
Focus on exports, diversification to boost revenue growth: RITES CMD
Proactive efforts to secure export orders for rolling stock and diversify the client base have helped improve our revenue outlook for the coming years, RITES Ltd Chairman and Managing Director Rahul Mithal said. A Navratna public sector undertaking and leading transport and engineering consultancy company, RITES this week reported a 4.3 per cent decline in its consolidated operating revenue in the March quarter to Rs 615 crore compared to Rs 643 crore in the year-ago quarter. Net profit rose by 3.4 per cent year-on-year to Rs 141 crore in the quarter. Mithal told PTI that the company's rolling stock export business was impacted due to a lack of fresh orders from many of its erstwhile African and South Asian clients during the pandemic and post-pandemic periods. He added that the Quality Assurance segment also faced challenges as Indian Railways fixed four entities, for the first time, for the Quality Assurance work through an open tendering process, impacting both the volume and margins substantially. However, according to him, the export outlook improved after nearly three years when we secured an export order from Mozambique for the supply of 10 locomotives - the first such order won through global competitive bidding -- driven by sustained and focused outreach to prospective countries. "The aggressive outreach has also helped us in securing one export order in each quarter during FY25. As on March 31, 2025, RITES' export order book stands at Rs 1,360 crore. As an export order takes at least 15-24 months to materialise (from receipt of the order to conversion in revenue), you will see the impact on revenue from FY26," Mithal said. The major export orders as of March 31, 2025, with RITES are Bangladesh order for 200 passenger coaches at Rs 900 crore, Mozambique's order for 10 locomotives at Rs 300 crore and South Africa's orders (three orders each for 3 locomotives) at approx. Rs 150 crore. So far as QA business is concerned, according to Mithal, the company brought in a significant change in its approach to address the challenge arising from a policy shift involving the inclusion of three additional players for the QA services of Railways -- TuV India Pvt. Ltd, Bureau Veritas India Pvt. Ltd. and Intertek India Pvt. Ltd. He stated that RITES started diversifying its QA client base into new areas such as renewables (solar), PM Vishwakarma Yojana, power transmission & distribution, states' Jal Jeevan Mission & Public Health Engineering Departments, vendor assessment (GeM), Independent Safety Assessment and international business among others, thus having a big chunk of multi-sectoral business. "From the outset of FY25, we emphasised the execution of domestic consultancy projects, especially the high-margin consultancy projects, which helped us in limiting the dip in operating revenue and profits YoY," Mithal said. "Further by way of aggressive outreach, we also consolidated our order book by maintaining the trend of 'one order a day company', securing more than 500 orders worth Rs 5,500 crore in the year and ending the year with an all-time high order book of Rs 8,877 crore," he added. Outlining the way forward for the coming year, Mithal said, "This twin-pronged focused business strategy of improved execution and aggressive order inflows has given us the platform to aim for an all-time high revenue in FY26. We will also continue to maintain our strike rate of 1 order a day and get further export orders.
Time of India
17-05-2025
- Business
- Time of India
RITES eyes revenue growth through export focus, quality assurance & business diversification: CMD
RITES Ltd , a Navratna public sector undertaking and a leading transport and engineering consultancy company, is banking on increased export orders and diversification of its Quality Assurance (QA) business to drive revenue growth in the coming years, according to its Chairman and Managing Director, Rahul Mithal. In a statement to PTI, Mithal said, 'Proactive efforts to secure export orders for rolling stock and diversify the client base have helped improve our revenue outlook for the coming years.' The remarks come in the backdrop of the company reporting a 4.3 per cent year-on-year decline in consolidated operating revenue for the March quarter of FY25 to Rs 615 crore, compared to Rs 643 crore in the same quarter last year. Despite the drop in revenue, net profit rose by 3.4 per cent year-on-year to Rs 141 crore during the quarter. Mithal attributed the decline in rolling stock exports to a lack of new orders from traditional markets in Africa and South Asia during and after the pandemic. In addition, the QA segment saw a dip in volume and margins after Indian Railways , for the first time, engaged four entities—including TuV India Pvt. Ltd, Bureau Veritas India Pvt. Ltd, and Intertek India Pvt. Ltd—for QA services through an open tendering process. However, the outlook for exports has started to improve. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like They Lost Their Money - Learn From Their Lesson Expertinspector Click Here Undo 'The export outlook improved after nearly three years when we secured an export order from Mozambique for the supply of 10 locomotives – the first such order won through global competitive bidding – driven by sustained and focused outreach to prospective countries,' he said. Mithal noted that RITES has since managed to secure one export order in each quarter of FY25. As of March 31, 2025, the company's export order book stands at Rs 1,360 crore. He explained that export orders typically take 15–24 months to convert into revenue, meaning the financial impact will be more visible from FY26 onwards. Key export orders currently include: A Rs 900 crore order from Bangladesh for 200 passenger coaches A Rs 300 crore order from Mozambique for 10 locomotives Approximately Rs 150 crore worth of orders from South Africa for three separate contracts, each involving three locomotives In response to the evolving QA landscape, RITES has significantly reoriented its strategy by expanding its QA services beyond traditional railway projects. Mithal said the company has diversified into sectors such as renewables (solar), the PM Vishwakarma Yojana, power transmission and distribution, the Jal Jeevan Mission, Public Health Engineering Departments, vendor assessment through GeM, Independent Safety Assessment, and international assignments. "From the outset of FY25, we emphasised the execution of domestic consultancy projects, especially the high-margin consultancy projects, which helped us in limiting the dip in operating revenue and profits YoY," Mithal noted. He further highlighted the company's strong order book, stating, 'By way of aggressive outreach, we also consolidated our order book by maintaining the trend of 'one order a day company', securing more than 500 orders worth Rs 5,500 crore in the year and ending the year with an all-time high order book of Rs 8,877 crore.' Looking ahead, Mithal said RITES is well-positioned for growth. 'This twin-pronged focused business strategy of improved execution and aggressive order inflows has given us the platform to aim for an all-time high revenue in FY26. We will also continue to maintain our strike rate of 1 order a day and get further export orders,' he said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
17-05-2025
- Business
- Time of India
Focus on exports, diversification of Quality Assurance business to drive revenue growth: RITES CMD
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Proactive efforts to secure export orders for rolling stock and diversify the client base have helped improve our revenue outlook for the coming years, RITES Ltd Chairman and Managing Director Rahul Mithal said. A Navratna public sector undertaking and leading transport and engineering consultancy company, RITES this week reported a 4.3 per cent decline in its consolidated operating revenue in the March quarter to Rs 615 crore compared to Rs 643 crore in the year-ago quarter. Net profit rose by 3.4 per cent year-on-year to Rs 141 crore in the told PTI that the company's rolling stock export business was impacted due to a lack of fresh orders from many of its erstwhile African and South Asian clients during the pandemic and post-pandemic added that the Quality Assurance segment also faced challenges as Indian Railways fixed four entities, for the first time, for the Quality Assurance work through an open tendering process, impacting both the volume and margins according to him, the export outlook improved after nearly three years when we secured an export order from Mozambique for the supply of 10 locomotives - the first such order won through global competitive bidding -- driven by sustained and focused outreach to prospective countries."The aggressive outreach has also helped us in securing one export order in each quarter during FY25. As on March 31, 2025, RITES' export order book stands at Rs 1,360 crore. As an export order takes at least 15-24 months to materialise (from receipt of the order to conversion in revenue), you will see the impact on revenue from FY26," Mithal major export orders as of March 31, 2025, with RITES are Bangladesh order for 200 passenger coaches at Rs 900 crore, Mozambique's order for 10 locomotives at Rs 300 crore and South Africa's orders (three orders each for 3 locomotives) at approx. Rs 150 far as QA business is concerned, according to Mithal, the company brought in a significant change in its approach to address the challenge arising from a policy shift involving the inclusion of three additional players for the QA services of Railways -- TuV India Pvt. Ltd, Bureau Veritas India Pvt. Ltd. and Intertek India Pvt. stated that RITES started diversifying its QA client base into new areas such as renewables (solar), PM Vishwakarma Yojana, power transmission & distribution, states' Jal Jeevan Mission & Public Health Engineering Departments, vendor assessment (GeM), Independent Safety Assessment and international business among others, thus having a big chunk of multi-sectoral business."From the outset of FY25, we emphasised the execution of domestic consultancy projects, especially the high-margin consultancy projects, which helped us in limiting the dip in operating revenue and profits YoY," Mithal said."Further by way of aggressive outreach, we also consolidated our order book by maintaining the trend of 'one order a day company', securing more than 500 orders worth Rs 5,500 crore in the year and ending the year with an all-time high order book of Rs 8,877 crore," he the way forward for the coming year, Mithal said, "This twin-pronged focused business strategy of improved execution and aggressive order inflows has given us the platform to aim for an all-time high revenue in FY26. We will also continue to maintain our strike rate of 1 order a day and get further export orders."
Yahoo
16-05-2025
- Business
- Yahoo
RITES Ltd (NSE:RITES) Q4 2025 Earnings Call Highlights: Navigating Revenue Dips with Record ...
Revenue Dip: 8% decrease for the fiscal year. Profit After Tax (PAT) Dip: 14% decrease for the fiscal year. Order Inflow: Over 150 orders totaling INR 1,400 crores in Q4. Order Book: All-time high of nearly INR 9,000 crores (INR 8,900 crores). Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. RITES Ltd (NSE:RITES) achieved an all-time high order book of nearly INR 9,000 crores by the end of FY25. The company maintained a strike rate of more than one order a day and one export order per quarter. RITES Ltd (NSE:RITES) aims for a 20% growth in top-line revenue and a commensurate growth in the bottom line for FY26. The company has diversified its Quality Assurance (QA) business, contributing significantly to revenue and profit. RITES Ltd (NSE:RITES) has a strong dividend payout ratio, maintaining around 95% in recent years. RITES Ltd (NSE:RITES) experienced an 8% dip in revenue and a 14% dip in PAT for FY25. Margins are expected to settle at lower levels, with EBITDA margins around 20% and PAT margins around 15-16%. The company faces increased competition in its leasing business, impacting margins and profits. Export revenue was nil in the previous year, indicating a need for recovery in this segment. The consultancy business is shifting towards more competitive bidding, potentially affecting margins. Warning! GuruFocus has detected 6 Warning Signs with NSE:RITES. Q: Can you clarify the timeline for the delivery of locomotives to Mozambique and coaches to Bangladesh? A: Rahul Mithal, Chairman and Managing Director, explained that deliveries for the 10 locomotives to Mozambique and 200 coaches to Bangladesh are on track to start by the end of Q1 or early Q2 of FY26. Revenue realization will occur upon shipment, and the company aims to maximize deliveries within the fiscal year. Q: What is the revenue guidance for FY26, and what will be the revenue mix? A: Rahul Mithal stated that RITES Ltd aims for a 20% growth in the top line and a commensurate increase in the bottom line for FY26. The company has an order book of INR 8,900 crores, with a mix of consultancy, turnkey, and export orders. Export revenue is expected to rebound significantly after a two-year gap. Q: How sustainable are the current margins, and what is the outlook for future margins? A: Rahul Mithal noted that while Q4 margins were high, the overall FY25 EBITDA margin was about 23%, and PAT margin was 18%. For FY26, the expected EBITDA margin is around 20%, and PAT margin is 15% to 16%, reflecting the competitive nature of the order book. Q: Can you provide an update on the consultancy business and its future prospects? A: Rahul Mithal highlighted that consultancy remains a core strength, with a focus on competitive bidding. The company expects continued growth in consultancy revenue, supported by recent orders and a diversified portfolio across infrastructure sectors. Q: What is the status of the RITES and DNV JV in the Assurance business? A: Rahul Mithal explained that the QA business has diversified significantly, contributing INR 40-50 crores to revenue and profit. The company has expanded its QA inspection vertical, securing a majority of non-railway QA business, and aims to continue this growth trajectory. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Mint
14-05-2025
- Business
- Mint
RITES Q4 Results: Navratna PSU posts 5% YoY rise in PAT to ₹133 crore, declares 26.50% dividend. Details here
RITES Q4 Results: Navratna public sector undertaking, RITES Limited on Wednesday, May 14, posted a 5% increase in consolidated profit (attributable to the shareholders) to ₹ 132.71 crore for the quarter ended March 31 of the financial year 2024-25 (FY25). The profit figure stood at ₹ 126.10 crore in the corresponding quarter last fiscal. Its revenue from operations dipped over 4% to ₹ 615 crore in the quarter under review, compared with ₹ 643 crore posted in the same period a year-ago. Year-on-year decrease in revenue is attributed to lesser revenue from quality assurance, a downtick in turnkey and almost no exports, the company said. Segment-wise, the company saw an increase in revenue from consultancy during the March 2025 quarter. It stood at ₹ 362 crore, compared with ₹ 335 crore posted in the same quarter last year. However, revenue from turnkey construction projects declined to ₹ 202 crore from ₹ 259 crore on a YoY basis. EBITDA in the March 2025 quarter stood at ₹ 189 crore, up by 6.2% YoY, with margins of 30.8%. The company secured the highest-ever order book of ₹ 8,877 crore, with 150-plus orders worth ₹ 1,418 crore bagged in Q4. Rahul Mithal, Chairman and Managing Director, RITES Limited, said, 'Concerted efforts this quarter in execution of high-margin projects has helped us achieve our objective of coming as close as possible to our previous financial year's performance, in line with our business strategy for this year.' On the growth prospects, Mithal said, 'With an all-time high order book of ₹ 8877 crore and maintaining the trend of 'one order a day', we have built a strong platform for the year ahead, aiming for appreciable growth in our revenue.' The railway company's board also recommended a final dividend, along with the Q4 results. The PSU firm declared a dividend of ₹ 2.65 per share (i.e. 26.50%) on equity shares of face value of ₹ 10 for the financial year 2024-25. The dividend payment is subject to approval by shareholders in the ensuing 51st Annual General Meeting of the Company. "Upon approval of shareholders, the dividend declared will be paid within thirty (30) days of declaration, subject to deduction of applicable Tax at Source as per the provisions of the Income Tax Act, 1961 and rules framed thereunder," RITES said. RITES share price jumped sharply following the Q4 earnings announcement. PSU railway stock hit the day's high of ₹ 248.90, rising as much as 6.75% in intraday trade today. The stock finally settled at ₹ 243.40, up 4.40%. In the last one year, however, RITES share price has declined 27%. On a five year basis, its returns stand at 110%.
