RITES Shares Trade 6% Lower After Q3 Result

RITES share price, a transport infrastructure consultancy and engineering firm faced a 6% decline on NSE on 2 February. This dip followed the release of the company's Q3FY24 financial results. In a regulatory filing, RITES disclosed an operating revenue of ₹683 crore for the quarter ending December 2023, a slight increase from ₹677 crore in the corresponding period of the previous fiscal year. EBITDA for Q3FY24 stood at ₹171 crore and the net profit for the period reported ₹129 crore compared to ₹148 crore in the previous fiscal.

Order Book and Dividend Declaration

During Q3FY24, RITES secured over 100 orders amounting to more than ₹612 crore, contributing to an impressive order book totaling ₹5,496 crore. Rahul Mittal, Chairman and Managing Director of RITES Ltd expressed the company's commitment to aggressive growth across sectors capitalizing on the infrastructure development capex push. RITES declared a third interim dividend of ₹4.75 per share totaling ₹114 crore for the quarter the record date for dividend payment is set for 9 February 2024.

Business Segment Performance

Consultancy Business: Consultancy segment contributing the highest revenue at ₹302 crore recorded a growth of 5.6% with a margin of 40.4%.

Turnkey and Leasing Segments: Both segments generated their highest ever quarterly revenue with leasing revenue at ₹37 crore and turnkey revenue at ₹256 crore. Margins for leasing stood at 40.2%.

Exports Revenue: While export revenue for the quarter was ₹58 crore, RITES anticipates a boost in export revenue in FY25 citing agreements for the supply of locomotives to CFM Mozambique and emerging as the L1 bidder for a tender with Bangladesh Railways.

Government Stake & Stock Performance

Rahul Mithal highlighted the company's strategic direction emphasizing sequential progress aligned with their FY objectives. As of 31 December 2023 Government of India holds a 72.20% stake in RITES. RITES classified as a Miniratna (Category-I) Schedule 'A' public sector enterprise, remains a key player in India's transport consultancy and engineering sector with diversified services and geographical reach.

RITES shares bounced back a bit from the morning slump and are now trading at ₹678.50, down 3.49% at the time of writing. Despite today’s dip the stock has been on a solid rise up 35.35% in the past month, 47.08% in the last 6 months and a whopping 104.53% over the past year.