RITES Expects 17% Revenue Growth On Robust Performance Across Segments
RITES’ revenue growth in 2019-20 will be led by strong performance across all its business segments, CMD Rajeev Mehrotra says.
RITES Ltd. expects revenue to grow by about 17 percent in 2019-20 led by strong performance across all segments of its business, according to its Chairman and Managing Director Rajeev Mehrotra.
“With the performance so far (this fiscal), we’re very firmly moving towards achieving or crossing that target,” Mehrotra told BloombergQuint in an interview. He said all of the company’s five segments—consulting, exports, locomotives, wet leasing, and turnkey contracts—have grown in FY19. “We have upgraded our export revenue forecast to up to Rs 550 crore," he said.
The company’s order book has improved on the back of increased exports, Mehrotra said, adding it’s looking to products in various gauges (the distance between the inner faces of two railway tracks) like cape gauge, broad gauge and meter gauge products. “But looking at the order of gauges being exported, we’re confident that this will also be a driver of growth.”
RITES has emerged as the L1 bidder (lowest bidder) for a cape-gauge country in the advanced stage of an auction, he said.
Global and domestic economic headwinds haven’t dampened RITES’ growth because of its presence across sectors, according to Mehrotra. “Globally, a lot of companies are making larger investments in railways, and highways and airports as well,” he said, adding that RITES completed a light rail metro project in Mauritius this month. “Since we’re present in all these sectors, we are able to generate enough business.”
On Friday, RITES shares rose 1.64 percent to Rs 265.85 on the BSE while the benchmark Sensex gained 0.63 percent to end the day at 39,298.38 points.
