RITES Q2FY25 Results: 16.5% Revenue Growth, ₹6581 Cr Order Book, and ₹1.75 Dividend

RITES Ltd, India’s top Transport Infrastructure Consultancy and Engineering firm, released its financial results for the quarter ending on September 30, 2024, showing solid growth in revenue and sustained high orders.

Key Highlights

In Q2, RITES Ltd. achieved a 16.5% increase in standalone revenue, which rose from ₹475 crore in the previous quarter to ₹554 crore. The company maintained a significant order book of ₹6581 crore and secured over 90 new orders worth ₹729 crore during the quarter, reinforcing its consistent trend of winning one order per day.

Dividend Payout

RITES announced a second interim dividend of ₹1.75 per share, with a high payout ratio of 97.9%, rewarding shareholders with substantial returns.

Q2 FY25 Consolidated Financial Overview

• Operating Revenue: The company’s operating revenue stood at ₹541 crore.
• EBITDA and Margins: RITES posted an EBITDA of ₹107 crore, with an EBITDA margin of 19.9%.
• Profit After Tax (PAT): PAT was ₹83 crore, compared to ₹110 crore in the same period last year (Q2 FY24).

H1 FY25 Consolidated Financial Overview

For the first half of FY25, RITES reported total revenue of ₹1070 crore, down slightly from ₹1171 crore in H1 FY24. EBITDA reached ₹215 crore, with a healthy margin of 21.0%. PAT was recorded at ₹173 crore, compared to ₹230 crore in the first half of the previous year, showing a moderate decline year-on-year.

RITES Ltd. Financial Performance in Q2 FY25

RITES Ltd. reported its financial performance for the second quarter of FY25, showing some decreases in revenue due to various external factors but maintaining profitability through its strong consultancy and leasing segments.

Consolidated Financials

For Q2 FY25, RITES’ consolidated operating revenue (excluding other income) was ₹541 crore, down 7.1% from ₹582 crore in Q2 FY24. Total consolidated revenue reached ₹562 crore compared to ₹609 crore in the same quarter last year. The company’s EBITDA stood at ₹107 crore with a margin of 19.9%, while PAT was ₹83 crore with a 14.7% margin. The decline in revenue was primarily due to reduced income from quality assurance and a slowdown in turnkey execution because of heavy monsoons.

Standalone Financials

In standalone terms, operating revenue (excluding other income) was ₹510 crore, down from ₹549 crore in Q2 FY24. Total standalone revenue came in at ₹554 crore, lower than ₹601 crore in the previous year. RITES’ EBITDA for the standalone segment was ₹80 crore with a margin of 15.7%, while PAT was ₹86 crore, reflecting a 15.5% margin. Both EBITDA and PAT decreased year-on-year from ₹111 crore and ₹117 crore, respectively.

Order Book Status

The company continues to maintain a healthy order flow, securing over 90 new orders (including contract extensions) worth more than ₹729 crore in Q2 FY25. As of September 30, 2024, RITES’ order book stood strong at ₹6581 crore, highlighting its sustained demand and growth potential.

On November 7, 2024, RITES Ltd’s share price opened at ₹533.75 and touched the day low of ₹289.55 at 10:34 AM.

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