RITES declines after Q3 PAT slips 30% YoY to Rs 105 cr

RITES fell 3.36% to Rs 246.25 after the PSU company's consolidated net profit declined 29.8% to Rs 105.31 crore on 27.51% decline in revenue from operations to Rs 449.29 crore in Q3 FY21 over Q3 FY20.

RITES said decline in revenue was on account of export deliveries not scheduled during the quarter (approximate impact of Rs 90 crore) and restrictions imposed due to pandemic.

Profit before tax fell 28.17% to Rs 143.78 crore in Q3 FY21 over Q3 FY20. EBITDA tumbled 25.7% to Rs 159 crore in Q3 FY21 from Rs 214 crore in Q3 FY20. EBITDA margin stood at 33.1% in Q3 FY21.

Commenting on the results, Rajeev Mehrotra, chairman and MD of RITES said, "Working towards post-pandemic economic growth, the company has maintained its focus on project execution, sustaining margins, and consolidation of order book."

The company's order book stood at Rs 6534 crore as of 31 December 2020, which provides revenue visibility for two to three years.

Further commenting on outlook, Mehrotra said, "The emphasis on infrastructure development in the Union Budget 2021-22, National Rail Plan and National Infrastructure Pipeline will help drive the growth of the sector, thus providing us opportunities to achieve double-digit growth in FY22 and beyond."

RITES is a Miniratna (Category - I) Schedule 'A' Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. As of 31 December 2020, the Government of India held 72.2% stake in the company.

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