RITES announced its Q1 results on July 31, 2024, highlighting a 10.76% decrease in revenue YoY, bringing it down to ₹485.76 crore from ₹544.35 crore. The profit also saw a significant decline of 26.84%, falling to ₹79.02 crore from ₹108.01 crore YoY.

On a quarter-on-quarter basis, revenue dropped by 24.48%, and profit decreased by 37.34%, reflecting a challenging business environment.

Operating Income and Expenses

The Selling, General & Administrative (SG&A) expenses showed a slight decrease of 0.7% QoQ but increased by 3.32% YoY, indicating a rise in operational costs.

Operating income witnessed a substantial decline of 43.04% QoQ and 37.13% YoY, pointing to reduced operational efficiency.

Earnings Per Share (EPS)

The Earnings Per Share (EPS) for Q1 stood at ₹3.29, reflecting a 26.73% decrease YoY. This drop in EPS highlights the company's lower profitability during the quarter.

Market Performance and Analysts' Ratings

Despite the challenging financial results, RITES delivered a 3.35% return in the last week and 42.34% YTD return. However, it recorded a -3.79% return in the last 6 months, indicating some volatility in the stock performance.

The company's market capitalization is ₹18,135.44 crore, with a 52-week high/low of ₹825.95/₹432.3. As of August 1, 2024, the analyst coverage includes 1 Sell, 1 Hold, 1 Buy, and 2 Strong Buy recommendations, with the overall consensus being a Buy.

Financial Summary

Period

Q1

Q4

Q-o-Q Growth

Q1

Y-o-Y Growth

Total Revenue

₹485.76 Cr

₹643.25 Cr

-24.48%

₹544.35 Cr

-10.76%

SG&A Expenses

₹141.12 Cr

₹142.11 Cr

-0.7%

₹136.59 Cr

+3.32%

Depreciation/Amortization

₹14.41 Cr

₹15.57 Cr

-7.45%

₹16.07 Cr

-10.33%

Total Operating Expense

₹394.39 Cr

₹482.84 Cr

-18.32%

₹399.01 Cr

-1.16%

Operating Income

₹91.37 Cr

₹160.41 Cr

-43.04%

₹145.34 Cr

-37.13%

Net Income Before Taxes

₹114.98 Cr

₹186.69 Cr

-38.41%

₹162.55 Cr

-29.26%

Net Income

₹79.02 Cr

₹126.1 Cr

-37.34%

₹108.01 Cr

-26.84%

Diluted Normalized EPS

₹3.29

₹5.25

-37.33%

₹4.49

-26.73%

Conclusion

RITES faced significant financial challenges in Q1FY25, with considerable declines in revenue and profit both year-on-year and quarter-on-quarter. The decrease in operating income and EPS highlights the tough market conditions. Despite these hurdles, the company has demonstrated resilience with notable YTD returns. Investors should monitor the company closely and consider the mixed analyst ratings in making investment decisions.

Also READ : Elgi Equipments Q1 Results: 20.44% Profit Increase Year-on-Year Amid Quarterly Decline

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX & Upstox.