RITES Q2 Results Review - Result Inline Estimates, Robust Execution On All Fronts: Axis Securities

Axis Securities Report

RITES Ltd. reported a decent set of Q2 FY23 numbers with revenue of Rs 659 crore (down13% YoY), supported by revenue growth in all segments except exports, Ebitda of Rs 181 crore (down16% YoY, above estimate), and adjusted profit after tax of Rs 140 crore (down 20% YoY, above estimate).

The company registered Ebitda margins of 27.5%in Q2 FY23 (our estimate: 25.5%) as against 29.6% in Q2 FY22. There has been an increase in other income due to increase in exchange variations earnings and dividend from REMC.

RITES booked consultancy sales of Rs 301 crore (up 14% YoY), export sales of Rs 79 crore, leasing of Rs 36 crore (up9% YoY), and turnkey of Rs 239 crore (up 117% YoY).

While the margins of the consultancy segment stood at 47.5%, leasing/export/turnkey projects reported Ebitda margins of 36.3%/22.8%/3.6% respectively.

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