Q1 2025 RITES Ltd Earnings Call Transcript
Key Points
- Order book increased by 11% from March 31 to June 30, with an addition of over INR 1,300 crore in orders across various sectors.
- Received significant export orders, including INR 900 crores from Bangladesh and INR 300 crores from Mozambique.
- Strong performance in securing orders, averaging nearly one order per day over the last two quarters.
- Strategic partnerships with NHAI and DMRC to leverage growth in infrastructure projects.
- Conscious decision to ramp up employee strength to execute the growing order book, with a net addition of about 250 employees.
- Q1 performance was muted, with significant impacts from changes in the inspection of IR business and export business.
- Export revenue dropped from INR 35 crores in Q1 last FY to nearly zero in this Q1.
- Margins in the turnkey segment were lower, with EBIT margins around 1.2% compared to the usual 2.5% to 3%.
- Increased competition in export orders leading to lower margins compared to previous years.
- Employee costs have risen due to the ramp-up in anticipation of new orders, impacting short-term profitability.
Good morning, ladies and gentlemen. I'm Steve, operator for this conference. Welcome to the conference call of RITES Limited this Q1 FY25 results.
We have with us today, Shri Rahul Mithal, Chairman and Managing Director; Shri Gopi Suresh Kumar Director Projects; Shri Anil Vij, Director, Technical; and Shri Bibhu Prasad, Director Finance. (Operator Instructions)
I would now like to hand the conference over to Shri Rahul Mithal, Chairman and Managing Director. Thank you, and over to you, sir.
Good morning. At outset of correction, I think the convener couldn't -- was not updated. I have my full Board with me, my Director of Finance and CFO, Mr. K.G. Agarwal; my Director of Projects, Mr. A.K. Singh; and my Director, Technical; Mr. Deepak Tripathi; and my Company Secretary, Mr. Vishal.
With that, let me start with giving the Safe Harbor statement. The presentation and the press release, which we uploaded on our website and exchanges yesterday and
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