RITES Q1 results: Profit falls 26% to Rs 96 crore in Q1

RITES is a Miniratna Schedule 'A' Central Public Sector Undertaking under the Ministry of Railways.

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Transport infrastructure consultancy and engineering firm RITES Ltd on July 28 said its profit after tax (PAT) decreased by 26 percent to Rs 96 crore in the April-June quarter. It had posted a PAT of Rs 129 crore in the year-ago quarter.

The company's operating revenue, excluding other income, stood at Rs 503.7 crore in the quarter under review, down 13 percent from Rs 578.33 crore in the year-ago quarter.

The decline in revenue is largely attributed to a fall in export earnings and a decrease in quality assurance revenue, the company said in a statement.

The company also said that the fall in its net profit can be attributed to a decrease in revenue.

RITES also said that the fall in revenue from its turnkey segment was due to the impact of bad weather on execution in certain regions. It witnessed a nearly 44 percent decline in revenues from its turnkey segment during Q1FY2024.

Revenues from the company's export segment also slumped by 52 percent on-year during the quarter, while revenues from its lease and consultancy segment declined by 8.5 percent and 5 percent, respectively.

The company's operating margin during the quarter fell significantly to 25 percent compared to 27 percent during the same period a year ago.

The operating margin of its export segment fell to 11.1 percent from 25.4 percent a year ago. Similarly, the operating margin from the lease segment also witnessed a fall to 37 percent from 41 percent a year ago.

The operating margin from RITES' consultancy and turnkey segment was recorded at 44.2 percent and 2.4 percent, respectively, a decline from 45.2 percent and 3.9 percent, respectively, in the year-ago period.

Back in November, RITES Chairman & Managing Directors Rahul Mittal had told Moneycontrol that RITES will find it difficult to maintain profit margin going forward.

RITES is a Miniratna Schedule 'A' Central Public Sector Undertaking under the Ministry of Railways.