Significant exports orders lined up to boost revenues, says RITES

RITES reported a 40 percent fall in Q2FY21 revenues while led a nearly 44 percent drop in net profit during the quarter. However, cost saving on supplies and services led to an improvement in margins.

With significant export orders lined up, the company is optimistic on the fourth quarter of fiscal 2021.

“I am still optimistic provided the situation doesn’t worsen on account of COVID. We have good exports lined up which were actually scheduled to be shipped December onwards, there is a delay about a month. So we hope to see all our exports lined up for this year to take place in Q4FY21 which could give us Rs 550-650 crore of revenues. That will be a significant game changer for current year’s optimism,” said Rajeev Mehrotra, CMD, RITES.

“We still believe a moderate growth is possible, he added.

While giving new order outlook Mehrotra said, “We have got orders from railways, highways, metros, and reconstruction of institutional building in last quarter so the capex program is now looking up. We are also looking at some major orders by December itself.”