RITES slips ~3% after marginal decline in Q4 net profit

The sales rose 11.42% to Rs635.87cr in the quarter ended March 2021 as against Rs570.70cr during the previous quarter ended March 2020.

Jun 17, 2021 03:06 IST India Infoline News Service

RITES
Shares of RITES Ltd were trading lower after net profit declined marginally 0.92% to Rs137.73cr in the quarter ended March 2021 as against Rs139.01cr during the previous quarter ended March 2020.

Commenting on the results, Mr. Rajeev Mehrotra, Chairman and Managing Director, RITES Limited, said, “Given the testing scenario, our focus remained on project delivery & execution which helped us to register Q-o-Q operational revenue growth in every quarter of FY21. Our Q4FY21 results surpassed the Q4FY20, but were not enough to make up for the shortfalls in the first three quarters.”

The sales rose 11.42% to Rs635.87cr in the quarter ended March 2021 as against Rs570.70cr during the previous quarter ended March 2020.

The stock is currently trading at Rs268.20 down by Rs8.15 or 2.95% from its previous closing of Rs276.35 on the BSE. The scrip opened at Rs274.75 and has touched a high and low of Rs275.40 and Rs267.25 respectively.

Commenting on the outlook, Mr. Mehrotra said, “We have the capability to timely deliver orders in hand but post covid normalcy will set the pace for execution. We are also aligned to seize more opportunities for growth in coming years.”

After declaring 2 interim dividends of Rs120cro (Rs5 per share) and Rs96cr (Rs4 per share) for FY21,

The Board of Directors have recommended a final dividend of Rs96cr (Rs4 per share) for FY21 which is 40% of paid-up capital. This dividend will take the dividend payout of the company to 73.6% for the FY21 based on the PAT of FY21.

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