Rites - Q4 FY20 Results
CMP: 266 (As on 02-07-2020)
Total revenue from operations 570 Cr
737 Cr (-22.69%) YoY | 619 Cr (-7.91%) QoQ
Year ending revenue: 2,474 Cr Vs. 2,047 Cr (20.84%)
Net Profit of 143.9 Cr
150.3 Cr (-4.62%) YoY 150.04 Cr (-4.29%) QoQ
Year ending Net profit: 633 Cr Vs. 490 Cr (29.18%)
EPS (in Rs.) 5.56
5.81 YoY |5.86 QoQ
Year ending EPS: 24.64 Vs. 18.78
View: Average result and slightly below expectation. YoY and QoQ revenue and profit both have declined.
Business Updates & Highlights:
Q4FY20 EBITDA was around INR 163.5 Cr Vs. 181.7 Cr in Q4FY19 therefore declined by 10.1% in YoY. EBITDA margin is around 28.7% Vs. 24.6% in YoY.
FY20 EBITDA was around INR 661 Cr Vs. 576.2 Cr in FY19 therefore up by 14.7% in YoY. EBITDA margin in FY20 was around 26.7% Vs. 28.1% in FY19.
Company is primarily operating into three main segment viz. Consultancy (domestic) – 50%, Export sales – 10% and Turnkey construction – 29.8%. YoY topline growth for Consultancy (dom.) – 13%, Export sales – (42.8%) and Turnkey construction – (35%).
YoY bottom line growth for consultancy (dom.) – (8.3%), Export sales – (74%) and Turnkey construction – (47.5%)
The Company has signed shareholder agreement on 21st May, 2020 for acquiring 24% stake in Indian Railway Stations Development Corporation (IRSDC) for INR 48 crore (4.80 crore equity share of 10/- each), with Rail Land Development Authority (RLDA) and IRCON International being the other equity
Partners.
The Board of Directors have proposed final dividend of INR 6 per share (face value of 10 per share) and further company has paid two interim dividends of 10.00 per share (face value of 10 per share) for financial year 2019-20
Financial
ROE and ROCE is around INR 31.8% and 20% respectively and book value per share is around INR 166 and share is currently trading at 1.8x of its book value. Company is currently trading at annualized PE of 11 which is good as per Industry benchmark. Promoter holding (Govt. of India) is around 72% in the company which is strong but stable. FIIs and mutual fund hold around 2.9% and 4.9% in the company. Cash and cash equivalent from operating activities as of March 2020 is around INR 268 Cr Vs. 134 Cr as of March 2019 (Very Positive). The good thing is company is virtually debt free and realization is also fair.
Position: Share support price is INR 230. Long term investor should continue with the company.
Share View: Share price high 331 (52 week) and now 266. RITES Limited is an engineering consultancy company, specializing in the field of transport infrastructure. Established in 1974 by the Government of India, the company's initial charter was to provide consultancy services in rail transport management to operators in India and abroad.
Opportunities: RITES Limited is a Miniratna (Category-I) Schedule `A' Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India having diversified services and geographical reach. Margin improved and strong cash flow in YoY. Debt free company with monopolistic business. The Company has significant presence as a transport infrastructure consultancy organization in the railway sector.
Risk: Q1 and Q2 FY21 topline may also impacted due to ongoing pandemic.
Sources:
Various publications
Disclaimer: The
information provided herein is based on publicly available information and
other sources believed to be reliable, but involve uncertainties that could
cause actual events to differ materially from those expressed or implied in
such statements. The document is given for general and information purpose and
is neither an investment advice nor an offer to sell nor a solicitation. While
due care has been exercised while preparing this document, we do not warrant
the completeness or accuracy of the information. We will not accept any
liability arising from the use of this material. The recipient of this material
should rely on their investigations and take their own professional advice.
Follow, Like, subscribe and
share
"Your Trust, Our
Financial Expertise."
Infyture, Investment For Your Future
Contact: +91-7990271953
// 8347871052
Website: http://infyture.wordpress.com
No comments:
Post a Comment
Please do not Enter any Spam Link in Comment Box