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Highlights
- Sales over the Year and quarter: The company’s sales declined by -6.34 % over the year, decrease in net sales/revenue by -5.8 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 29.81 %. Marginal increase in other income during this quarter, up by 30.15%.
- Profit over the Year and quarter: Challenges in sustaining profitability for RITES Limited. Profit dropped by -1.6 % Year to Year, RITES Limited’s profitability increased by 6.13 % in this quarter.
- EPS over the Year and quarter: EPS declined by -4.37 % Year to Year. EPS increased by 5 % in previous quarter. Positive impact on shareholders.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 686.81 Cr | Rs. 682.89 Cr | Rs. 643.25 Cr | -5.8 % | -6.34 % |
| Expenses | Rs. 495.55 Cr | Rs. 513.98 Cr | Rs. 464.94 Cr | -9.54 % | -6.18 % |
| Operating Profit | Rs. 191.26 Cr | Rs. 168.91 Cr | Rs. 178.31 Cr | + 5.57 % | -6.77 % |
| OPM % | 27.85 % | 24.73 % | 27.72 % | + 2.99 % | -0.13 % |
| Other Income | Rs. 18.82 Cr | Rs. 18.77 Cr | Rs. 24.43 Cr | + 30.15 % | + 29.81 % |
| Interest | Rs. 2.32 Cr | Rs. 1.88 Cr | Rs. 0.48 Cr | -74.47 % | -79.31 % |
| Depreciation | Rs. 16.63 Cr | Rs. 14.96 Cr | Rs. 15.57 Cr | + 4.08 % | -6.37 % |
| Profit before tax | Rs. 191.13 Cr | Rs. 170.84 Cr | Rs. 186.69 Cr | + 9.28 % | -2.32 % |
| Tax % | 27.33 % | 24.88 % | 26.79 % | + 1.91 % | -0.54 % |
| Net Profit | Rs. 138.89 Cr | Rs. 128.78 Cr | Rs. 136.67 Cr | + 6.13 % | -1.6 % |
| EPS in Rs | Rs. 5.49 | Rs. 5 | Rs. 5.25 | + 5 % | -4.37 % |
Today, we’re looking at RITES Limited’s financial performance for the Q4(Mar 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -6.34 %. However, it did see a marginal slip of -5.8 % from the previous quarter. Expenses decreased slightly by -9.54 % quarter-on-quarter, aligning with the annual decline of -6.18 %. Operating profit, while down -6.77 % compared to last year, faced a quarter-on-quarter increase of 5.57 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -0.13 %, but an expansion of 2.99 % sequentially. Other income rose by 30.15 % compared to the last quarter, despite an annual growth of 29.81 %. Interest expenses dropped significantly by -74.47 % from the previous quarter, yet the year-over-year decrease remains at a moderate -79.31 %. Depreciation costs climbed by 4.08 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -6.37 %. Profit before tax declined annually by -2.32 % but saw an increase from the preceding quarter by 9.28 %.
Tax expenses as a percentage of profits decreased slightly by -0.54 % compared to last year, with a more notable quarter-on-quarter increase of 1.91 %. Net profit fell by -1.6 % year-on-year but experienced a 6.13 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -4.37 % but a quarterly rise of 5 %. In summary, RITES Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 686.81 Cr | Rs. 682.89 Cr | Rs. 643.25 Cr | -5.8 % | -6.34 % |
| Expenses | Rs. 495.55 Cr | Rs. 513.98 Cr | Rs. 464.94 Cr | -9.54 % | -6.18 % |
| Operating Profit | Rs. 191.26 Cr | Rs. 168.91 Cr | Rs. 178.31 Cr | + 5.57 % | -6.77 % |
| Net Profit | Rs. 138.89 Cr | Rs. 128.78 Cr | Rs. 136.67 Cr | + 6.13 % | -1.6 % |
| EPS in Rs | Rs. 5.49 | Rs. 5 | Rs. 5.25 | + 5 % | -4.37 % |
In reviewing RITES Limited’s 2024(Q4) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -6.34 % year-on-year, although there was a slight dip of -5.8 % from the previous quarter. Expenses decreased by -6.18 % compared to the previous year, with a decrease of -9.54 % quarter-on-quarter. Operating Profit dropped by -6.77 % annually, and saw a 5.57 % increase from the last quarter.
Net Profit showed yearly decrease of -1.6 %, and experienced a 6.13 % increase from the previous quarter. Earnings Per Share (EPS) fell by -4.37 % annually, however rose by 5 % compared to the last quarter. In essence, while RITES Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
