1:1 bonus share & Rs 6,581 crore order book: Railway civil construction company Q2FY25 revenue Rs 562 crore; PAT Rs 83 crore & declares 2nd interim dividend of Rs 1.75/share
The company has a market cap of over Rs 14,000 crore and as of September 30, 2024, its order book stands at Rs 6,581 crore.
Established in 1974, RITES Limited is a leading public sector player in India's transport consultancy and engineering, offering diversified services from locomotive and train manufacturing to consultancy, exports, leasing and turnkey projects across railways, metros, airports, ports, highways, ropeways and urban infrastructure. As India's export arm for rolling stock (except Thailand, Malaysia, and Indonesia), it boasts expertise in various gauges and caters to diverse transportation needs.
Quarterly Results & Half-Yearly Results: For the second quarter of fiscal year 2025 (Q2FY25), the company reported consolidated operating revenue of Rs 541 crore, resulting in an EBITDA of Rs 107 crore, translating to a margin of 19.9 per cent. However, the company's net profit after tax (PAT) declined to Rs 83 crore compared to Rs 110 crore in the same quarter of the previous fiscal year. For the first half of FY25 (H1FY25), the company's total revenue stood at Rs 1,070 crore, down from Rs 1171 crore in H1FY24. EBITDA for the half-year period was Rs 215 crore with a margin of 21 per cent. The company's PAT for H1FY25 was Rs 173 crore, a decrease of 24.3 per cent compared to Rs 230 crore in H1FY24.
Recently, the company has secured a significant contract from the Delhi Metro Rail Corporation Limited (DMRC). The company has received a Letter of Acceptance (LOA) on November 5, 2024, for the "Retrofit Work in RS-1 Trains of DMRC." This domestic contract entails the modernization and upgrade of the DMRC's existing RS-1 trains. The project is estimated to be completed within a timeframe of 3 years from the issuance of the Letter of Award. RITES' share in this contract is approximately Rs 36.36 crore, excluding GST.
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The company has a market cap of over Rs 14,000 crore and as of September 30, 2024, its order book stands at Rs 6,581 crore. The shares of the company ex-traded 1:1 bonus equity share as of Friday, September 20, 2024. The stock has a 52-week high of Rs 413.08 & a 52-week low of Rs 217.68 and has been maintaining a healthy dividend pay-out of 88.3 per cent. The stock has an ROE of 18 per cent and an ROCE of 25 per cent. Investors should keep a close eye on this railway civil construction stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.