RITES (RITES) Q3 24/25 earnings summary

Executive summary

• Achieved a record order book of ₹7,978 crore as of December 31, 2024, with 110+ new orders worth over ₹1,900 crore in Q3FY25, nearly matching the previous full year's total and tripling Q2 inflows.

• Board approved unaudited results for Q3 and nine months ended December 31, 2024, and declared a third interim dividend of ₹1.90 per share, totaling ₹4.90 per share for the period.

• Celebrated 50 years of operations and received a Certificate of Merit at the SAFA Best Presented Annual Report Awards.

• Signed MoUs with NISE for QA services in renewable energy and with SAIL for rail connectivity works; strategic MoUs and office openings in the Middle East to tap into IMEC corridor and regional opportunities.

• Financials reviewed by the Audit Committee and independent auditors with no material misstatements noted.

Financial highlights

• Q3FY25 consolidated revenue was ₹575.76 crore, up from ₹540.86 crore in the previous quarter, but down from ₹682.89 crore in Q3 FY24; net profit after tax was ₹109.39 crore, up from ₹82.50 crore in Q2, but down from ₹128.78 crore in Q3 FY24.

• Standalone Q3FY25 revenue rose to ₹592 crore, up 6.9% sequentially; PAT increased to ₹95 crore, up 10.5% from Q2FY25.

• Nine-month comparison shows an 11% decline in top line and a 25% decline in PAT, attributed to lower export, quality assurance, and turnkey revenues.

• Margins moderated due to lower revenue from exports, QA, and consultancy abroad.

• Other income included a one-time insurance claim settlement of ₹18.50 crore.

Outlook and guidance

• FY24 top line is expected to close with less than a 10% decline, and PAT with less than a 20% decline year-over-year.

• FY25 is targeted for at least 20% top line growth, with EBITDA margins around 20% and PAT margins at 15%-16%.

• Revenue growth expected from new turnkey projects and increased leasing activity; Q4 is projected to be the strongest quarter, continuing sequential improvements.

• Export segment recovery delayed due to geopolitical factors; consultancy margins under pressure from competition.