• Upside at top-line is largely due to strong revenue growth in exports as well as Turnkey Projects (TP). The segment revenue of Consultancy business was up by 11% to Rs 248.19 crore with consultancy domestic up by 11% to Rs 233.16 crore and consultancy abroad register a growth of 7% to Rs 15.03 crore. The contribution of Consultancy business to total sales declined to 46% from 67% in corresponding previous period. The export sales jumped to Rs 128.87 crore (or 24% of sales) compared to mere Rs 1.16 crore (or 0% of sales) in the corresponding previous period. The domestic leasing was up by 24% to Rs 29.22 crore (or 5% of sales). The turnkey project was up by 69% to Rs 128.04 crore (or 24% of sales). The power generation was down by 58% to Rs 3.33 crore (or 1% of sales).

• EBIT was up by 36% to Rs 146.30 crore largely driven by export sales and consultancy business. Segment profit of consultancy was up by 15% to Rs 91.08 crore with domestic consultancy EBIT up by 17% to Rs 98.86 crore and consultancy abroad was down by 26% to Rs 5.38 crore. The segment margin of consultancy business expanded by 100 bps to 42%. The segment profit of export jumped to Rs 25.69 crore (compared to just Rs 0.01 crore in the corresponding previous period) facilitated by higher sales and 1900 bps expansion in segment margin to 19.9%. The segment profit of domestic lease despite higher sales was up by 17% to Rs 98.86 crore with its segment margin contract by 330 bps to 44.4%. The segment profit of turnkey projects was up by 994% to Rs 3.61 crore aided by higher sales as well as 240 bps expansion in segment margin to 2.8%.

• The OPM contracted by 250 bps to 24.3% and that is largely due to change in revenue mix. With the contribution of higher margin consultancy business decline compared to corresponding previous period seems have dented the margin.

• The other income was down by 40% to Rs 34.98 crore largely due to higher base as the other income of corresponding previous period was inflated by Rs 25 crore of provisions/liability reversal.

Order book

During Q1FY20, gross order inflow was Rs 473 crore, taking the order book as on 30.06.2019 to Rs 6052 crore.

Other developments

Shareholders have approved issue of Bonus shares in Annual General Meeting held on 30th July 2019 in the ratio of 1:4 (one bonus share for every four shares). Record date for bonus Issue was 11th August 2019.

Management Comment

Commenting on the results, Rajeev Mehrotra, Chairman and Managing Director, said, "I am delighted to share that after a very successful financial year 2019, RITES has continued its growth journey in the first quarter of FY20. All four segments have shown continuous growth in revenue, profitability and as a result, we have been able to maintain healthy sustainable margins."