RITES expects subdued FY24 on export challenges
RITES, a state-owned enterprise, is navigating a complex landscape and is focused on a strategy that aims to weather the impending headwinds and drive growth across various sectors of its operations.
RITES, a prominent player in transport infrastructure consultancy and engineering, is concerned about challenges in the export markets.
In an interview with CNBC-TV18, Rahul Mithal, the Chairman and Managing Director (CMD) of RITES said that the strategy for this year is to hold steady, diversify, and strive to achieve the same levels as in FY23 in terms of top-line, bottom-line, and margins.
He further said that the company is also working on securing new export orders, expanding its client base in the inspection sector, and focusing on substantial growth in the project consultancy business.
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He continued, “All three are progressing sequentially on track, and this FY would be a period of trying to hold on to FY23 and I see a substantial growth happening in Q1 onwards as these three strategies start generating revenue.”
Mithal also addressed the evolving business landscape, noting a gradual shift from clients operating in a nomination mode to competitive bidding. RITES is adapting to this shift and is actively pursuing diversification and client expansion. Mithal highlighted,
"We are engaged in 13 different verticals, providing consultancy services across various infrastructure sectors. We are encouraged by the healthy trend of securing approximately 78 orders this quarter, averaging around 0.85 orders per day. Our target is to achieve one order per day, and I believe it's attainable in the coming quarters."
On October 31, RITES disclosed its financial results for the quarter ending in September 2023. The company posted a 21.4% decline in after-tax profit, totalling ₹110.17 crore for the period. In the same quarter the previous year, the firm had reported a profit of ₹140.2 crore.
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(Edited by : Shweta Mungre)
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