The de-growth in the revenue decrease was mainly attributed by dip in the exports and revenue from quality assurance.

Profit before tax in Q1 FY24 stood at Rs 162.55 crore, down 16.7% from Rs 195.12 crore posted in Q1 FY23.

EBITDA declined 10% year on year to Rs 161 crore during the quarter. EBITDA margin was at 29.6% in Q1 FY24 as against 29.7% recorded in the corresponding quarter previous year.

The consultancy business continues to provide the highest revenue to the company and secured revenue of Rs 270 crore with margins at 44.2%. Leasing revenue stood at Rs 31 crore and turnkey revenue at Rs 165 crore. At Rs 38 crore, the Export segment has shown a dip of 52.1%, however green shoots are visible for sustained revenue from this stream by year-end, said the company.

The company has secured more than 70 orders (including extension of works) worth more than Rs 300 crore in Q1 FY24, thereby maintaining a healthy order book of Rs 5,702 crore as on 30 June 2023.

Rahul Mithal, chairman and managing director, RITES, said, “The Q1 results show movement in the right direction vis-a-vis our envisaged goal for this FY, of being able to reduce the impact of the changed business dynamics on the QA front and downtick of the Export revenue y-o-y by consolidating our Project Consultancy business.”

On the growth prospects, Mithal added, “Building up on this performance further in the coming quarters, we are confident of being able to tap the upcoming opportunities in the Project Consultancy stream and the Export business, in line with our vision for this financial year.”

Meanwhile, the company's board has declared first interim dividend of Rs 3.75 per share for the FY24. The record date for the same is fixed on 7 August 2023.

Separately, the board of directors of the company has approved the appointment of Krishna Gopal Agarwal as an additional director designated as director (finance) and chief financial officer (CFO) of the company from the date of his assumption of charge to the post on or after 1 August 2023.

Further, the firm informed that Bibhu Prasad Nayak will be superannuating from the post of director finance and CFO of the company on 31 July 2023.

RITES, a Miniratna (Category-I) Schedule 'A' public sector enterprise, is a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. As of 30 June 2023, the Government of India held 72.20% stake in the company.

Shares of Rites gained 2.01% to Rs 466.45 on the BSE.