RITES Limited — PPTs, 14-05-2025: Investor Presentation

1. Financial Highlights:

RITES recorded standalone revenue of ₹623 Cr in Q4FY25, up 5.2% QoQ, with PBT at ₹182 Cr (+10.8% QoQ). PAT rose 11.6% QoQ to ₹134 Cr, supported by improved consultancy execution and recognition of deferred fees. However, FY25 revenue declined ~8-9% YoY due to slower export and turnkey project execution; PAT fell 22.1% YoY to ₹380 Cr. EBITDA margin contracted to 19.6% from 22.8%. The balance sheet remains strong with net worth steady at ₹2,533 Cr and a 95.4% dividend payout ratio.

2. Strategic Initiatives & Growth Drivers:

Priority is shifting toward consultancy services and exports to counter turnkey segment softness. The MAITRI IT platform was launched to boost cross-border trade, enhancing international reach. Leasing segment expanded modestly with the locomotive fleet rising to 88 units. Upcoming turnkey projects are at the design stage, hinting at revenue recovery in FY26. Continued focus on digital transformation and sustainability drives future growth.

3. Business Developments:

RITES secured over ₹5,000 Cr in new orders during FY25, lifting the order book to a record ₹8,877 Cr. Major wins include turnkey projects in coal mining and railway sidings, locomotive repairs, and feasibility studies for high-speed rail corridors. MoUs were signed with DP World, C-DAC, and CWPRS Pune to strengthen technological and operational capabilities.

4. Market Position & Competitive Advantage:

The company’s leadership is underpinned by a strong and diversified order book across consultancy, turnkey, leasing, and export segments. Deep government ties and reputed clientele ensure steady project inflow. A skilled workforce of 1,800+ engineers combined with low attrition (3.1%) supports execution quality and client trust.

5. Investor Implications:

Strong order book growth and rising consultancy exports offer positive growth potential. Margin pressures and timing of turnkey project execution warrant close attention. The substantial dividend payout reflects commitment to shareholder returns. Digital initiatives and global expansion could unlock medium-term upside. Monitoring FY26 turnkey ramp-up and export momentum will be key for earnings recovery.