Transport infrastructure consultancy and engineering firm RITES Ltd on October 31 said its profit after tax (PAT) decreased by 21.5 percent to Rs 110.17 crore in the July-September quarter, against Rs 140.20 crore in the year-ago quarter.
The company's operating revenue, excluding other income, stood at Rs 582.36 crore in the quarter under review, down 11.6 percent from Rs 659.08 crore in the year-ago quarter.
The decline in revenue was largely attributed to a fall in export earnings and a decrease in quality assurance revenue, RITES 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 6.4 percent decline in revenues from its turnkey segment during Q2FY2024 to Rs 223.68 crore compared to Rs 238.56 crore in the same period a year ago.
Revenues from the company's export segment also slumped by 99 percent on-year during the quarter to barely Rs 72 lakh when compared to Rs 78.8 crore in the same period a year ago, while revenues from its lease and consultancy segment declined by 11.8 percent on year to Rs 31.32 crore.
The company's operating margin during the quarter fell significantly to 25.8 percent compared to 28.56 percent during the same period a year ago.
The operating margin from the domestic consultancy segment witnessed a fall to 46.51 percent from 49.35 percent a year ago.
The operating margin from RITES' turnkey segment also fell to 0.98 percent from 3.61 percent in the year-ago period.
Back in August, RITES Chairman & Managing Directors Rahul Mittal had told Moneycontrol that the company will aggressively bid for export and consultancy orders in 2023-24 in order to make up for the fall in revenues from the Indian Railways' quality assurance/inspection division.
RITES is a Miniratna Schedule 'A' Central Public Sector Undertaking under the Ministry of Railways.
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