Hit by COVID-19 pandemic RITES on Tuesday reported a 17 per cent decline in its consolidated profit at Rs 65 crore in the quarter ending June.
The railways' consultancy firm had posted a consolidated profit of Rs 102 crore in the corresponding quarter of previous fiscal, it said in a regulatory filing to the BSE.
Total revenue declined to Rs 379 crore during the quarter under review as against Rs 573 crore in the corresponding period of the previous fiscal.
Total expenditure also declined to Rs 290 crore during the quarter under review as against Rs 420 crore in the year-ago period.
Rajeev Mehrotra, Chairman and Managing Director, RITES Limited said: "Despite pandemic conditions, the results of the company for the quarter are satisfactory. We quickly resumed operations at various locations which enabled us to maintain revenue streams and margins." Commenting on the outlook, Mehrotra said: "Despite tough times, we continued to focus on the inclusive growth of the company and our stakeholders. The slowdown in economic activity, supply chain disruptions and travel restrictions impacted the business performance in the first quarter of FY 2021, however, the financial health of the company remains strong." The company is set to regain momentum with further easing of the restrictions, he said.
Based on the existing order book of Rs 6,157 crore and expected recovery in the business environment in H2, the company may achieve moderate growth in the financial year 2020-21, he added.
The consultancy business continued to provide the highest revenue to the company and achieved a revenue of Rs 185 crore, down by 20.7 per cent over the first quarter of financial year 2020.
"But, the margins in the consultancy segment were maintained at 44.3 per cent. During this period in addition to securing more than 60 new projects/contracts including the enhanced scope of work, RITES Ltd signed an MoU (memorandum of understanding) with Coal India for providing railway infrastructure technical services for five years," it said.
Leasing revenue stood at Rs 24 crore in the first quarter of financial year 2021 as against Rs 29 crore in the first quarter of financial year 2020. The decline was due to suspension of work at certain sites, ports during the lockdown.
"Exports revenue during the Q1 FY21 stands at Rs 0.5 crore against Rs 129 crore in Q1 FY20, as no exports were lined up for Q1FY21. The company has entered into cape gauge markets by securing a contract from Mozambique for export of locomotives and coaches, for which supplies are likely to start in H2 FY21,"it said.
Turnkey revenue during the first quarter of fiscal year 2021 stood at Rs 114 crore against Rs 128 crore in the year-ago period, but the company was able to sustain the margins of 4.5 per cent, it said.
RITES Ltd is a public sector enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach.
The company claims to have undertaken projects in over 55 countries including Asia, Africa, Latin America, South America and Middle East regions.
RITES Limited is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).