RITES (RITES) Q4 24/25 earnings summary

Executive summary

• Achieved a record order book of INR 8,900 crores (₹8,877 crore) at FY-end, with over 500 new orders totaling over INR 5,500 crores (₹5,000 crore+) during the year.

• Audited standalone and consolidated financial results for FY 2024-25 were approved, with an unmodified audit opinion from statutory auditors.

• PAT for Q4FY25 rose 9% year-over-year, with EBITDA and PBT up 11.6% and 10.8% respectively, but FY25 saw a decline in revenue and profits due to lower exports and turnkey project execution.

• Board recommended a final dividend of ₹2.65 per share, bringing total FY25 payout to 95.4% of PAT, with three interim dividends totaling ₹4.90 per share.

• Appointment of an additional independent director for a three-year term was approved.

Financial highlights

• FY25 consolidated operating revenue declined 9.6% year-over-year to ₹2,218 crore; standalone revenue at ₹2,095.31 crore.

• FY25 consolidated net profit after tax was ₹423.66 crore, standalone net profit at ₹380.22 crore.

• Q4FY25 standalone PAT was ₹134 crore, up 9.2% year-over-year; EBITDA margin improved to 30.8%.

• Dividend payout ratio for FY25 at 95.4% of PAT.

• CapEx remains minimal, expected to stay below INR 100 crores, reflecting a low CapEx business model.

Outlook and guidance

• Targeting 20% top-line growth and commensurate bottom-line growth for FY 2026, aiming for record-high revenue and profit.

• Exports and turnkey project execution expected to pick up in FY26, supporting revenue and profit recovery.

• EBITDA margin expected to normalize around 20%, with PAT margin at 15-16% for the coming year.

• Export revenue expected to rebound significantly after two years of minimal contribution, with major deliveries to Mozambique and Bangladesh starting in FY 2026.