Indian Railway PSU RITES cited decrease revenue after tax and whole revenue in FY24 as in contrast to FY23 due to a significant dip in revenue from export phase and quality assurance business.
| Photo Credit: H Vibhu
Indian Railway PSU RITES cited decrease revenue after tax and whole revenue in FY24 as in contrast to FY23 due to a significant dip in revenue from export phase and quality assurance business. The firm expects to flip the tide by amping up it’s export business because it gears up for supplying 200 coaches, an order price ₹915 crore to Bangladesh Railway.
In an unique interplay with The Hindu, Rahul Mitthal, Chairman and Managing Director, RITES Limited mentioned that exports revenue stands at a mere Rs 6 crore throughout Q4FY24 on account of low provides. “Signing of agreements for supplying ten locomotives to Mozambique and 200 passenger coaches to Bangladesh Railway, revenue from the export stream is expected to pick up from second half of FY25,” he added.
On May 20, RITES signed a formal contract settlement with Bangladesh Railway to provide 200 railway coaches. “While coaches are quicker to make, locomotives are heavier pieces of equipment than coaches and take longer to manufacture. Final designs and approvals are underway. We have to freeze the designs and get prototypes approved before starting mass manufacture,” Mr. Mitthal mentioned.
While the export order for Bangladesh is being funded by European Investment Bank, an export order that RITES was supposed to land with National Railways of Zimbabwe has been delayed. “The order will go through, subject to Zimbabwe securing funding. We had signed a MoU with Zimbabwe and have been constantly be in touch with them to convert it into formal LoA,” Mr. Mitthal mentioned.
On the India Middle East EU Corridor (IMEC) entrance, Mr. Mitthal mentioned that following the G20 announcement for establishing commerce hyperlinks between India, Middle East and Europe, and the intergovernmental framework settlement signed between India and UAE subsequently in February, feasibility assessments alongside the hall have began.
“One port each from India and UAE are being identified to prepare a proof of concept (PoC) for establishing ease of movement, executing digitisation while moving cargo on an alternate route. It is like a confidence building measure, and the PoC can be replicated along other legs of the corridor,” Mr. Mitthal mentioned.
Among the ports that might be linked on the west coast of India are Mundra (Gujarat), Kandla (Gujarat), and Jawaharlal Nehru Port Trust (Navi Mumbai). In the Middle East, at the least 5 ports have been shortlisted to be linked to the Indian ports which embrace Fujairah, Jebel Ali, and Abu Dhabi in the UAE in addition to Dammam and Ras Al-Khair ports in Saudi Arabia.It is to be famous that aside from government-owned ports, each Mundra port in India and Haifa port in Israel are privately managed by the Adani Group, and have been highlighted in proposal paperwork that The Hindu had accessed.
RITES working revenue (consolidated), excluding different revenue, stands at ₹2453 crore in FY24 as in opposition to ₹2628 crore in FY23. Total revenue stands at ₹2539 crore as in opposition to ₹2730 crore in FY23. RITES working revenue (consolidated), excluding different revenue, stands at ₹643 crore in Q4FY24 as in opposition to ₹687 crore in Q4FY23, a dip by 6.3%.
After a hole of 4 years, RITES has obtained export orders price ₹1200 crore, however how the revenue realisation from these orders pan out stays to be seen, as execution timelines in supplying the export orders in railways could take wherever between two to three years or extra.
Q4FY24 revenue of RITES stands at ₹668 crore as in opposition to ₹706 crore in Q4FY23.
Current quarter’s revenue after tax (PAT) of ₹137 crore is barely lesser than Q4FY23 PAT which stood at ₹139 crore.
The firm has secured greater than hundred orders (together with extension of works) price greater than ₹940 crore in Q4FY24, persevering with to be a ‘one-order-a-day’ firm, Mr. Mitthal mentioned. “Q4 ended with a healthy order book of ₹5690 crore,” he added.
