Rites' consolidated net profit fell 44.19% to Rs 132.36 crore on 41.18% drop in revenue from operations to Rs 438.91 crore in Q2 September 2020 over Q2 September 2019.
The consolidated revenue in Q2FY21 was impacted on account of export deliveries not scheduled during this quarter and final settlement amount of Rs 91 crore from a foreign client during Q2 FY20. EBITDA during the quarter dropped 44.24% to Rs 189 crore as against Rs 339 crore in Q2 FY20. EBITDA margin stood at 37.9% due to expeditious execution and timely implementation of cost control measures.
The profit before tax (PBT) fell 46.20% to Rs 175.36 crore in Q2 September 2020 as against Rs 325.95 crore in Q2 September 2019. The Q2 result was declared during trading hours today, 10 November 2020.
Rites has recorded more than 60 new and extension of the orders. The company has achieve its highest ever order book of Rs 6661 crore. It has secured order worth Rs 948 crore during this quarter. With committed workforce and strong order book, the firm was able to take up implementation of projects wherever normalcy resumed.
Commenting on the Q2 results, Rajeev Mehrotra, the chairman and managing director (MD) of Rites, said: "Despite current scenario, Q2FY21 revenue has increased by 33% over the previous quarter. The company continued to focus on project execution, order book consolidation and sustaining margins."
Mehrotra stated: "The results of the quarter reflect positivity about the recovery in business operations and company is still hopeful of a moderate growth in FY21 in anticipation of further easing of COVID-19 related restrictions."
Shares of Rites rose 0.04% to Rs 243.05 on BSE.
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 30 September 2020, the Government of India held 72.02% stake in the company.
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