RITES Q1 Results: Shares slip 1% ahead of earnings; will firm report solid numbers? Order book stood at ₹8,877 crore as of Q4 FY25

Shares of the company in the morning trade was trading around 0.8% lower at ₹255.90 apiece on the NSE.

During the previous quarter (March 2025 or Q4 FY25 quarter), RITES' operating revenue (consolidated), excluding other income, stood at ₹615 crore as against ₹643 crore logged in Q4FY24, a dip of 4.3%.

Total revenue was ₹639 crore during the March 2025 quarter as against ₹668 crore in Q4 FY24. EBITDA and PAT stood at ₹189 crore, up by 6.2%, and ₹141 crore, up by 3.4%, with margins of 30.8% and 22.1%, respectively.

Year-on-year, there was a decrease in revenue due to lesser revenue from quality assurance, a downtick in turnkey and almost no exports.

On a standalone basis, operating revenue, excluding other income, stood at ₹587 crore in Q4 FY25 against ₹606 crore seen in Q4 FY24. Total standalone revenue came in at ₹623 crore against ₹639 crore logged in Q4 FY24. EBITDA and PAT, with respective margins of 27.5% and 21.6%, stood at ₹162 crore, up by 11.6%, and ₹134 crore, up by 9.2%.

Financial Performance in FY25

RITES' operating revenue (consolidated), excluding other income, stands at ₹2,218 crore in FY25 as against ₹2,453 crore in FY24. Total revenue stood at ₹2,324 crore as against ₹2,539 crore in FY24.

Year-on-year, there was a decrease in revenue on account of a significant dip in revenue from the exports, QA and turnkey projects.

"However, the pick-up in exports and turnkey is expected during FY26. EBITDA and PAT stand at ₹527 crore and ₹424 crore against ₹650 crore and ₹495 crore, respectively, in FY24. EBITDA and PAT margins stand at 23.8% and 18.2%, respectively," the PSU said in its press release.

Segmental Performance (Standalone)

RTES said the consultancy business continued to provide the highest revenue to the company and achieved the revenue of ₹1,133 crore with margins at 36.3% in FY25.

The slight fall in consultancy revenue is attributable to the dip in quality assurance revenue. Leasing revenue stands at ₹150 crore, maintaining the margins of 35.1%.

Turnkey revenue stood at ₹797 crore and exports at a mere ₹15 crore during the year.

Dividend Details

The PSU said that the Board of Directors recommended the final dividend of ₹2.65 per share, amounting to ₹127 crore. With this, the company’s dividend payout ratio stood at 95.4% of the profits for FY25.

Order Book

RITES secured more than 150 orders (including extension of works) worth more than ₹1,418 crore in Q4 FY25, thereby achieving the highest-ever order book of ₹8,877 crore as of March 31, 2025.

What management said

Rahul Mithal, Chairman and Managing Director, RITES Limited, said, “Concerted efforts this quarter in execution of high-margin projects have helped us achieve our objective of coming as close as possible to our previous financial year’s performance, in line with our business strategy for this year.”

Outlook

On the growth prospects, Mithal said, “With an all-time high order book of ₹8,877 crore and maintaining the trend of ‘one order a day’, we have built a strong platform for the year ahead, aiming for appreciable growth in our revenue.”