RITES Q2 earnings: Net profit falls 25%, board declares interim dividend

Shares of RITES Ltd were trading on a flat note in the afternoon session today after the railway firm reported a weak set of Q2 earnings. RITES reported a 25% fall in net profit to Rs 82.50 crore in the last quarter against Rs 110.17 crore in the corresponding quarter of the previous fiscal. Revenue from operations slipped 7% to Rs 540.86 crore in Q2 against Rs 582.36 crore in the corresponding quarter of the previous fiscal.

Earnings per share (EPS) fell to Rs 2.10 in the September 2024 quarter against Rs 1.52 in the corresponding quarter of the previous fiscal. Additionally, the Board of Directors declared 2nd interim dividend of Rs 1.75 per share (face value of ?10 per share) for the financial year 2024-25.

RITES Ltd stock was trading flat at Rs 294.25 on Wednesday against the previous close of Rs 294.65 on BSE. The stock has gained 17.16 per cent this year and risen 31 per cent in one year.

Market cap of the firm stood at Rs 14,141 crore on BSE.

Shares of RITES are trading lower than the 5-day, 20-day, 30 day, 50-day, 100-day, 150 day and 200-day moving averages. Total 0.95 lakh shares changed hands amounting to a turnover of Rs 2.82 crore in the current session on BSE.

Additionally, the PSU announced securing a significant order from Delhi Metro Rail Corporation Limited (DMRC) for retrofit work on RS-1 trains.

The contract was given via a letter of acceptance (LOA) received on November 5, following RITES emerging as the lowest bidder in a DMRC tender issued on September 26.

The contract, valued at Rs 36.36 crore (excluding GST), is expected to be completed within three years from the LOA issuance. The retrofit work focuses on making modifications and upgrades to improve the performance and longevity of DMRC’s RS-1 trains.

RITES Limited, a subsidiary of Indian Railways, provides engineering services. The company offers transport infrastructure consultancy, railway inspection, rolling stock leasing and maintenance, airport construction management, industrial and electrical engineering, and other related services.