RITES Ltd. reported a mixed set of June-quarter earnings, with higher revenue and net profit offset by a decline in operating margins.
The state-run engineering consultancy posted a consolidated net profit of Rs 87.2 crore, up 8.9% year-on-year from Rs 80.1 crore. Revenue from operations rose 8.7% to Rs 532 crore, compared with Rs 490 crore in the corresponding quarter last year.
RITES Q1 Results - Cons, YoY
- Net profit up 8.9% at Rs 87.2 crore vs Rs 80.1 crore YoY
- Revenue up 8.7% at Rs 532 crore vs Rs 490 crore YoY
- EBITDA up 0.4% at Rs 115 crore vs Rs 114 crore YoY
- EBITDA margin at 21.5% vs 23.3% YoY
Operating performance remained largely flat. EBITDA edged up 0.4% year-on-year to Rs 115 crore from Rs 114 crore. However, EBITDA margin narrowed to 21.5% from 23.3% a year ago, indicating pressure on operating profitability despite higher revenue.
The Q1results suggest that while RITES continued to deliver steady top-line growth, rising costs weighed on margins during the quarter.
Shares of RITES became volatile after the Q1 results, trading around 1.19% lower at Rs 216.70 apiece, as of 1:50 pm.
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