RITES Q2 income soars by 93% to ₹473 crore
RITES revenue increased to ₹292 crore in the second quarter of the current fiscal
New Delhi: The total income of state-owned railways consultancy firm RITES Ltd shot up by 93% in the second quarter of the current fiscal year, the company said on Tuesday.
“The company has recorded a total income of ₹473 crore in the second quarter of FY19, which is up by 93% over the corresponding time in FY18. The increase was mainly contributed to by increased consultancy and turnkey business which grew by ₹132 crore and ₹104 crore, respectively,” chairman and managing director Rajeev Mehrotra said while announcing the results.
The domestic leasing business of the company also grew by 23%, he said.
The company improved upon its earnings before interest, taxes, depreciation and amortisation (Ebitda) margins from 37.4% in the corresponding period last year to 38.5% this year, while employee cost remained nearly constant.
Its consultancy business contributed about 67% of the operating turnover and income. The company reported an increase in its consultancy business from ₹160 crore in Q2’ FY18 to ₹292 crore in Q2’FY19. Income from construction projects increased significantly to ₹116 crore in Q2’FY19 from ₹12 crore in Q2’FY18.
The company’s order book stood at ₹6,183 crore on 30 September 2018, which is expected to be executed in the next one to three years. This includes export orders of ₹1,284 crore. The export order book is likely to be executed in 2 to 2.5 years. The company will start exporting in the second half of FY19.
“Based on the order book and half yearly performance of the company, I expect the company will achieve the targeted 22% operating revenue growth over last year. I am pleased to announce that the first consignment of DMU (diesel multiple unit) train set for Sri Lanka is being shipped shortly. Also, one prototype locomotive from DLW (diesel locomotive works) is on the way for shipment to Sri Lanka,” Mehrotra said.
The RITES board also approved in-principle investment of ₹50 crore in equity capital of Indian Railway Stations Development Corporation Ltd, a company promoted by Ircon and Rail Land Development Authority. The company plans to provide engineering services for station development projects.
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