Axis Securities: RITES - Pandemic Weighs On Q1 FY21; Bounce Back Expected In FY22
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Axis Securities Report
RITES Ltd. reported dismal set of numbers for Q1 FY21 courtesy the lockdown due to pandemic Covid-19.
The consultancy revenues dropped by 21% (YoY), leasing revenues were down by around 13% (YoY), exports revenues stood at just Rs. 0.5 crore (versus Rs 129 crore in Q1 FY20) and turnkey revenues were down by 11% (YoY) taking the overall revenues lower by 38% (YoY).
Company reported an Ebitda of Rs 60 crore (down by 55% YoY) and profit after tax of Rs 65 crore (down by 36% YoY).
Despite the dismal performance in this quarter, the company has been able to secure new projects/contracts with enhanced scope of work in consultancy space, made successful entry into cape gauge markets for exports by securing exports order for locomotives and coaches to Mozambique, Africa and has been shortlisted for allotment of line electrification, civil works, signaling and telecommunication works by Indian Railways.
RITES signed an memorandum of understanding with Coal India Ltd. for providing railway infrastructure technical services for five years.
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