RITES Q4FY23 Results: Net Profit Slips 2% to ₹138 Cr, Board Proposes 60% Dividend; Stock Price Dips

 

RITES Ltd, the Miniratna Schedule 'A' Central Public Sector Undertaking under the Ministry of Railways, formerly known as Rail India Technical and Economic Service Limited, has announced its financial results for the fourth quarter. Despite the announcement, the stock price experienced a slight decline of over 1%. The company's net profit for Q4FY23 stood at ₹138 Cr, reflecting a 2% decrease compared to the previous year. In a stock exchange filing, RITES stated that the Board of Directors has recommended a final dividend of 60% (₹6 per share) for the financial year 2022-23, subject to shareholder approval in the upcoming Annual General Meeting.

During the quarter ended March 2023, RITES recorded a decline in revenue from operations, reaching ₹686.81 Cr, representing a decrease of 10.34% YoY. The net income for Q4FY23 amounted to ₹705.63 Cr, down from ₹787.52 Cr in the corresponding quarter of the previous year. Net expenses for the quarter were reported at ₹514.17 Cr, showing a decline of 12.54% YoY. The earnings per share (EPS) for Q4FY23 stood at ₹5.49 compared to ₹5.69 in the same period of FY22.

Analyst A R Ramachandran commented on the Q4 results, noting that below-average performance in terms of both revenue and operating margins contributed to the decline in RITES' stock price. The stock is facing strong resistance at ₹403, and a daily close below the support level of ₹376 may lead to near-term targets of ₹351-313.

RITES Ltd's shares closed at ₹389.25 apiece on the NSE, reflecting a 1.83% decrease from the previous close of ₹396.50 apiece. The stock has achieved a 52-week high of ₹433.00 (on May 8, 2023) and a 52-week low of ₹226.20 (on June 20, 2022). The company has a track record of consistent dividend declarations, with an equity dividend of 170.00% at a face value of ₹10 per share, resulting in a dividend yield of 4.37% at the current share price of ₹389.25. As of Q4FY23, RITES recorded promoters shareholding of 72.20%, FIIs stake of 3.37%, DIIs stake of 15.89%, and a public stake of 8.53%.