RITES declares interim dividend of 60 pc amounting to Rs 6 per share

Government-owned RITES Ltd said on Monday its board of directors has declared an interim dividend of Rs 6 per share of Rs 10 each at a rate of 60 per cent of paid-up capital.

The record date for the purpose of payment of dividend is January 10, 2020.

"RITES has demonstrated its capacity to execute across segments and simultaneously able to protect its margins in the H1 of FY20," said Chairman and Managing Director Rajeev Mehrotra.

"We had a strong H1 FY20 where we have seen our standalone revenue going up by 71 per cent and profit-after-tax up by 72 per cent on year-on-year basis. This growth has enabled us to announce a healthy interim dividend," he said in a statement.

Standalone revenue of the company for the first half of FY20 was Rs 1,423 crore and profit after tax was Rs 325 crore. For the FY20 so far, the company's dividend payout ratio stands at 46 per cent (on six month profit after tax).

In FY19, the company generated standalone profit after tax of Rs 445 crore and declared a dividend of Rs 255 crore.

The board of directors also approved investment of Rs 48 crore for acquiring a stake of 24 per cent in Indian Railways Station Development Corporation Ltd. This investment is being done at face value, that is Rs 10 per share, and will provide RITES an opportunity of growth in the emerging field of development of railway stations.

RITES is a mini-ratna category-one schedule-A public sector enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach.

The company has an experience spanning 45 years and has undertaken projects in over 55 countries across Asia, Africa, Latin America, South America and Middle East regions.

RITES Limited is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).

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