RITES Ltd. expects to close the ongoing financial year with an order book of Rs 8,000 crore on the back of export orders and foreign consultancy projects.
“This (September quarter) has been our best quarter so far,” RITES Chairman Rajeev Mehrotra told BloombergQuint in an interview. “Overall, we would have a quantum jump of Rs 500 crore in terms of exports for the year, and we're also looking for a few turnkey and foreign consultancy projects.”
The performance of RITES' foreign consultancy segment was subdued in the second quarter due to a mismatch in billing cycles, said Mehrotra, adding that a Rs 24 crore settlement was payable during the fourth quarter for an ongoing project. “There are enough projects in the pipeline and I'm not concerned about the growth (of foreign consultancy segment) or margin therein.”
RITES Q2 Results 2019-20: Key Higlights (Year-on-Year)
- Revenue rose 68.4 percent to Rs 746.2 crore.
- Net profit up 2.2 times to Rs 232.6 crore.
- Ebitda up 31.4 percent to Rs 195.8 crore.
- Margin at 26.2 percent versus 33.6 percent.
- Total order book stands at Rs 5,833 crore.
On Thursday, RITES shares rose as much as 5.6 percent intraday to an all-time high of Rs 303.75 apiece.
WATCH | Here's Why RITES thinks a fall in margin isn't a point of concern
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