Rites has renewed Memorandum of Understanding (MoU) with Coal India on 03 July 2020 for Project Management Consultancy Services of Rail Infrastructure business, and construction of rapid loading system, coal handling plants and silos. This MOU has been renewed for a period of five years.

While in the past, such MOU enabled RITES to achieve a fee income of around Rs. 100 crore per year, the company is expecting increase in it due to additional scope and several projects expected in the pipeline.

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RITES announced that the Board of Directors of the Company at its meeting held on 30 June 2020, inter alia, have recommended the final dividend of Rs 6 per equity Share (i.e. 60%) , subject to the approval of the shareholders.

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Net profit of Rites declined 4.26% to Rs 139.01 crore in the quarter ended March 2020 as against Rs 145.20 crore during the previous quarter ended March 2019. Sales declined 22.59% to Rs 570.70 crore in the quarter ended March 2020 as against Rs 737.26 crore during the previous quarter ended March 2019.

For the full year,net profit rose 31.22% to Rs 616.10 crore in the year ended March 2020 as against Rs 469.51 crore during the previous year ended March 2019. Sales rose 20.85% to Rs 2474.41 crore in the year ended March 2020 as against Rs 2047.45 crore during the previous year ended March 2019.

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Total consolidated revenue rose 22.1% to Rs 2735 crore and profit after tax rose 29.3% to Rs 633 crore in the year ended 31 March 2020 (FY 2020) over FY 2019. The company's order book as on 31 March 2020 was Rs 6223 crore.

Commenting on the results, Rajeev Mehrotra, Chairman and Managing Director, RITES said rolling stock exports remained the company's strategic growth area duly supported with Government of India's Make in India program.

Commenting on the outlook, Mehrotra said that some uncertainties have emerged in recent times due to Covid-19, which may impact the business operations in FY21 but sufficient order book, diversified business segments and opportunities in infrastructure sector at domestic level as well as abroad are expected to help in quick recovery and future business growth.

RITES is a Miniratna (Category - I) Schedule 'A' Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach.

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