RITES Q2 consolidated profit down 44% at Rs 132 crore

RITES Ltd on November 10 reported a 44 per cent decline in its consolidated profit at Rs 132.36 crore for the quarter ended September.

The railways' consultancy firm had posted a consolidated profit of Rs 237.20 crore in the corresponding quarter of the previous fiscal, it said in a regulatory filing. Total revenue during the quarter under review declined to Rs 499.66 crore as against Rs 887.85 crore in the year-ago period.

Total expenditure also declined to Rs 325.59 crore as against Rs 563.28 crore for the said period. Rajeev Mehrotra, Chairman and Managing Director, RITES Limited, said, Despite current scenario, Q2FY21 revenue has increased by 33 per cent over the previous quarter. The company continued to focus on project execution, order book consolidation and sustaining margins.

"EBITDA (earnings before interest, taxes, depreciation, and amortization) and PAT (profit-after-tax) stand at Rs 189 crore and Rs 132 crore against Rs 339 crore and Rs 237 crore, respectively, in Q2FY20. EBITDA and PAT margins are sustained and stand at 37.9 per cent and 26.5 per cent, respectively, due to expeditious execution and timely implementation of cost control measures," the company said. With more than 60 new and extension of the orders, company has been able to achieve its highest ever order book of Rs 6,661 crore. The company secured order worth Rs 948 crore during the September quarter, it said.

With its committed workforce and strong order book in hand, company was able to take up implementation of projects wherever normalcy resumed, it added. On outlook, Mehrotra said, The results of the quarter reflect positivity about the recovery in business operations and company is still hopeful of a moderate growth in FY21 in anticipation of further easing of COVID related restrictions.