RITES Q1 Review - Execution To Pick Up: IDBI Capital

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IBDI Capital Report

RITES Ltd.'s Q1 FY22 profit after tax came 39%/ 46% lower than our / consensus estimate.

This is led by lower revenue on exports and turnkey segment.

RITES expects execution of export to pick up from Q2 FY22 but turnkey segment execution is delayed by client to FY23E.

Order inflow was strong and Q1 FY22 order book at Rs 69 billion equals four times trailing twelve months and is one of the highest for the company.

Company also secured orders of new railway line projects worth Rs 40 billion in Q2 FY22.

RITES has announced an interim dividend of Rs 2 for FY22. We have modeled total dividend of Rs 18 for FY22E (payout of 72%).

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