In This Article:
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Top Line (Revenue): Year-over-year dip of about 15% to 16%.
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Bottom Line (Net Income): Year-over-year dip of about 15% to 16%.
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EBITDA Margin: Sequential growth of about 1%.
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PAT Margin: Sequential growth of about 1%.
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Order Inflow: Over 110 orders totaling 1900+ crore, nearly equivalent to the entire previous fiscal year's 2200 crore.
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Order Book: All-time high of 8,000 crore.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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RITES Ltd (NSE:RITES) achieved a record-breaking order inflow of over INR 1,900 crore in Q3 FY25, nearly equivalent to the entire previous fiscal year's total.
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The company has maintained a consistent strike rate of securing one order per day for four consecutive quarters, resulting in an all-time high order book of INR 8,000 crore.
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RITES Ltd (NSE:RITES) is targeting a 20% top-line growth in FY25-26, driven by revenues from consultancy, export, and turnkey projects.
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The company has successfully diversified its client base in quality assurance, with a shift from 60% Indian Railways to 60% non-Indian Railways clients.
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RITES Ltd (NSE:RITES) has established strategic MOUs in the Middle East, opening up new opportunities for growth in rail infrastructure and logistics.
Negative Points
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Year-over-year, RITES Ltd (NSE:RITES) experienced a 15-16% dip in both top-line and bottom-line performance in Q3 FY25.
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Export margins are expected to be significantly lower than the historical 20% due to competitive global tenders.
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The company's revenue from turnkey projects, which have lower margins, is increasing, potentially impacting overall profitability.
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There has been a delay in the execution of the Bangladesh export order, pushing revenue realization to the next fiscal year.
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RITES Ltd (NSE:RITES) faced a hit of INR 200 crore in top-line revenue over the first nine months of FY25, primarily due to a lack of export revenue and reduced quality assurance and turnkey revenues.
Q & A Highlights
Q: When do you see execution picking up, particularly for Turnkey projects, given the robust order flow? A: The dip year-on-year is due to older turnkey orders nearing completion. Fresh order inflows will start generating revenue from Q4 onwards. We aim for at least a 20% growth in the top line for FY25-26.
Q: What percentage of export orders from Bangladesh and Mozambique will be executed in FY26, and what are the expected margins? A: We have an export order book of about INR 1,300 crore, with at least 40% expected to be realized in the coming fiscal year. Margins for these orders will be lower than the historical 20% due to competitive bidding.