RITES Limited : Full Form, Profile, Latest Revenue and Financials Details

In company profile section we would be providing the readers the short description about the superb companies that are listed on the Indian Stock Exchanges. This section will primarily focus on the ambitious overview of the company in terms of its origin, originator, and latest fiscal reports and much more. That will help an ideal investor to understand the core of the company in a better and simpler manner. This week we would be exploring RITES Limited which is Government of India backed company that is involved in integrative consultancy in the fields of transport, infrastructure,and related technologies. Companies Origin & Profile: Brief Company Profile: RITES Limited alias Rail India Technical and Economic Service was established as a public limited company under the Companies Act, 1956 on 26th of April ,1974 in Delhi. It is an public sector enterprise which is having varied services in conveyance and engineering sector across the geographical reach in this field under its hats. The company is ranked no.1 on the basis of net profit and dividend declaration in the technical consultancy solution sector. Inception & Founders: RITES was incorporated as wholly-owned government company, a Miniratna (Category – I) under the aegis of Indian Railways as a Government of India Enterprise. Chairman & Directors: Mr Rajeev Mehrotra is the Chairman and Managing Director of RITES. Customer Segment & Area of Operations: RITES Limited has diversified customer segments in airports, ports, highways and varied conveyance sector which consists of:

• Design, engineering and consultancy services in transport infrastructure sector with focus on railways, urban transport, roads and highways, ports, inland waterways, airports and ropeways;
• Leasing, export, maintenance and rehabilitation of locomotives and rolling stock;
• Undertaking turnkey projects on engineering, procurement and construction basis for railway line, track doubling, 3rd line, railway electrification, up gradation works for railway transport systems and workshops, railway stations, and construction of institutional/ residential/ commercial buildings, both with or without equity participation;
• Wagon manufacturing, renewable energy generation and power procurement for Indian Railways through our collaborations by way of joint venture arrangements, subsidiaries or consortium arrangements.

Its client base is spread across 55 countries in Africa, South East Asia, Middle East and Latin America. Its client mainly consists of National Governments and Other Apex Organizations in international markets and Central Government, State Governments, Public Sector Undertakings, Private Enterprises and Corporations & Industrial establishments in India. Confidence Booster for Investors: The following pointers will uplift the confidence of any stock market analyst. As this highlight the favourable business outcomes for RITES Limited.

• The company has been maintaining healthy dividend payout at 34.93%.
• The company is almost debt free.
• Formidable record of being committed to its clients for the past three decades.

Quick Financial Information(Last Updated on 07/08/2018):  

Market Cap:	Rs 5,627 Cr.
Book Value:	Rs 111.36
ROCE:	14.17 %
Listed on	BSE and NSE
Current ratio	1.53
Current Price:	Rs 275.25
Stock P/E:	18.31
ROE:	15.78 %
Bonus component in equity capital (%)	2.50 %
52 weeks High / Low	289.90 / 190.00
Reported return on net worth (%)	16.26 %
Dividend Yield:	2.36 %
Face Value:	Rs 10

Shareholding Pattern: The table below highlights the approximate shareholding pattern of RITES Limited.

Holder Name's	% holdings
Government	87.40%
General Public	6.22%
Financial Institutions	3.26%
Others	1.26%
FII	1%
Banks and Mutual Funds	0.85%

Peer Comparison: The table below highlights the Top 7 companies in the same business, therefore, giving the easy benchmark for comparing RITES Limited with other 6 companies in the same business.

S.No.	Name	CMP Rs.	P/E	Mar Cap Rs.Cr.	Div Yld %	NP Qtr Rs.Cr.	Qtr Profit Var %	Sales Qtr Rs.Cr.	Qtr Sales Var %	ROCE %
1	Larsen & Toubro	1290.45	21.66	180900.94	1.24	1472	43.15	28283.45	18.78	29.05
2	Jindal Saw	86.15	6.6	2754.68	1.16	95.41	48.99	2284.31	63.51	7.2
3	NBCC	78.3	42.25	14094	1.04	141.65	-18.95	2184.23	-6.89	28.45
4	Punj Lloyd	14.3	1.51	479.9	0	944.08	619.93	1060.2	19.13	-5.75
5	Rites	281.35	18.31	5627	2.36	82.73		549		14.17
6	KNR Construct.	229.9	11.88	3232.79	0.22	79.74	52.09	624.37	29.51	48.05
7	Techno Elec.	284.8	15.59	3209.19	0	33.39	0.42	326.39	-9.82	20.64

Annual & Quarterly Results: Below is the Quarterly Results of RITES Limited.

Particulars	Mar 2018	Dec 2017	Mar 2017
Sales	549	360	419
Expenses	451	224	368
Operating Profit	98	136	51
OPM %	17.89%	37.70%	12.09%
Other Income	39	35	18
Depreciation	7	8	8
Interest	0	0	0
Profit before tax	130	163	61
Tax	47	56	13
Net Profit	83	107	47

Annual Results of RITES Limited.

Particulars	Mar 2017	Mar 2016	Mar 2015
Sales	1,301	1,075	1,011
Expenses	984	729	662
Operating Profit	317	346	349
OPM %	24.35%	32.20%	34.56%
Other Income	207	135	145
Interest	2	1	2
Depreciation	32	32	26
Profit before tax	490	448	467
Tax	135	166	156
Net Profit	355	282	311

Cash Flow statement: Readers will find the cash flow statements of RITES Limited of past 3 years.

Particulars	Mar 2015	Mar 2016	Mar 2017
Cash from Operating Activity	-92	468	525
Cash from Investing Activity	315	-393	-82
Cash from Financing Activity	-63	-93	-176
Net Cash Flow	160	-18	267

Balance Sheet: The below table highlights the balance sheet position for the past 3 years.

Particulars	Mar 2015	Mar 2016	Mar 2017
Share Capital	100	100	200
Reserves	1,570	1,758	1,838
Borrowings	0	0	0
Other Liabilities	1,908	2,397	2,634
Total Liabilities	3,578	4,256	4,672
Fixed Assets	207	264	262
CWIP	10	8	5
Investments	236	274	373
Other Assets	3,124	3,710	4,032
Total Assets	3,578	4,256	4,672

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