RITES is in focus as the company emerges as the lowest bidder for two railway projects. They have also received an extension from Metro Express, Mauritius for their Rosehill line.

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Rajeev Mehrotra, CMD of RITES, said, “We see almost a 15 percent increase in the opening orderbook and these are important orders because electrification is top priority for the railways. By December 2023, they need to complete the existing electrification requirements. We see possibly some more electrification orders coming in during this year.”

“Also, Mauritius was an important project, the first metro project that we are doing overseas. Here the client has extended our contract for another 3.50 KM of extension work.”

On revenue growth, Mehrotra said, “These are coming at a margin ranging from 11.4 to 10.49 percent for the electrification projects. The metro work is going to give additional fees of Rs 45 crore, similarly Bangladesh project will give Rs 63 crore. So, in terms of percentage, the last two would be maintaining our normal consultancy margins.”

On EBITDA, he said, “FY20 has around Rs 2,400 crore of operating income. We believe that around 15 percent or maybe a little higher, we will try to record in FY22. FY21 has not been a good year, so I am targeting growth over FY20.”

On cash reserves, he said, “There is no plan to return to shareholders as of now except the dividend, which the board would be considering from time-to-time. This company needs about Rs 400-500 crore as working capital, so we will utilise the cash on planned projects.”

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(Edited by : Dipika)

First Published:Jun 30, 2021 10:31 AM IST