RITES Q3 Profit Falls 15% YoY, Revenue Down 16%

29 Jan 2025 , 11:54 PM

Shares of RITES Ltd., a state-run railway company, declined on January 28, 2025, after the company announced its Q3 FY25 results, which showed a decline across all key financial metrics.

The company’s revenue from operations declined 15.7% YoY to ₹575.8 crore, compared with ₹682.9 crore in the same quarter last year.

Net profit came down by 15% YoY at ₹109.4 crore due to lower revenue and increasing cost of operations. EBITDA dropped 30.5% YoY at ₹117.4 crore. EBITDA margin contracted by 440 bps to 24.8%, compared with last year’s.

The company has announced a third interim dividend of ₹1.9 a share for the financial year FY25, which will bring returns to the shareholders even when the company’s financial performances are dismal. The record date for this dividend payment has been declared for Saturday, February 1, 2025. This means that shareholders with shares on this date will be eligible for the dividend.

In September 2024, RITES had announced a bonus issue in the ratio of 1:1 to issue one bonus share for every existing share so as to improve liquidity and enhance shareholder value.