RITES (RITES) Q4 14/15 earnings summary

Executive summary

• FY15 delivered record PBT of ₹456.10 crore, up 18% YoY, while operating revenue declined 7% to ₹1,015.17 crore, mainly on lower export sales. Consultancy and leasing growth partly offset the export decline.

• Improved order book, planned railway investment and expansion into turnkey workshop projects, wagon manufacturing and renewable energy supported the stated growth outlook.

Financial highlights

• Total revenue was ₹1,166.02 crore vs ₹1,246.23 crore; operating revenue was ₹1,015.17 crore vs ₹1,093.46 crore, and expenditure fell to ₹709.92 crore from ₹860.14 crore.

• PBT rose to ₹456.10 crore from ₹386.09 crore; PAT increased to ₹306.14 crore from ₹263.61 crore; EPS was ₹30.61 vs ₹26.36.

• Consultancy and leasing income rose 31% to ₹775.91 crore from ₹592.98 crore; other income was ₹150.85 crore vs ₹152.77 crore.

Outlook and guidance

• The five-year railway investment plan of ₹8.5 lakh crore was expected to create significant opportunities in network expansion, high-speed rail, rolling stock and manufacturing.

• An improved order book and positive infrastructure investment outlook underpinned confidence in meeting growth targets; domestic locomotive leasing and turnkey railway-workshop upgrades were described as growing revenue streams.

• The 26 MW Jaisalmer wind project was underway; Railway Energy Management Company had begun procuring 50 MW from Damodar Valley Corporation, with stated annual railway power-cost savings of about ₹100 crore.