RITES (RITES) Q4 09/10 earnings summary

Executive summary

• Operating turnover rose 3.4% YoY to ₹555.99 crore and PBT rose 10.65% to ₹165.65 crore; PAT increased to ₹111.95 crore from ₹94.28 crore.

• Total income declined to ₹623.26 crore from ₹672.20 crore, reflecting prior-year Iraq interest income of ₹48.87 crore and exchange gain of ₹25.51 crore.

• New contracts secured were ₹973 crore; the year’s major wins included a Saudi railway operations and maintenance contract and expansion into domestic locomotive leasing.

Financial highlights

• Consultancy fees increased to ₹399.01 crore from ₹332.73 crore; operating expenditure declined to ₹457.61 crore from ₹522.51 crore.

• Other income fell to ₹67.27 crore from ₹134.50 crore, including lower Iraq interest and exchange variation; interest on bank deposits increased to ₹45.92 crore from ₹25.04 crore.

• Net worth increased to ₹695 crore from ₹610 crore; cash and bank balances rose to ₹1,116.16 crore from ₹812.20 crore.

Outlook and guidance

• Infrastructure investment under India’s Eleventh Plan, including planned spending of over ₹20 lakh crore, was expected to support demand across transport infrastructure services.

• Growth priorities included expanding rolling-stock leasing, workshop modernization, high-horsepower locomotive exports, PPP projects, high-speed rail and metro design capabilities.

• Business in hand at year-end was ₹973 crore; partial supply of Sri Lanka DMU train sets was expected during 2010-11.