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

For more useful articles on trading, investing and market knowledge, visit our Knowledge Center section.
(Note: Investment is subjected to market risks, please go through the detailed research and analysis before investing).

Leave A Comment?