RITES Ltd, the engineering consultancy arm of Indian Railways, is aiming to increase the ratio of export in total revenue from under 1% now to 20-25% in the next three years and sustain it at that level, chairman and managing director Rahul Mithal told FE.
“In the past 9-10 months, we’ve received orders worth Rs 1,300 crore (largely of exports), which are substantially above the trend in the past four-five years,” Mithal told FE. “Since most of these orders are linked to locomotives and coaches, the revenues will start reflecting in our results from next fiscal year.”
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The navratna PSU’s main focus is now on increasing its footprint in about 12 African countries–such as South Africa, Zimbabwe, and Mozambique–as well as Bangladesh, and South America. “We’re navigating the evolving business scenario, and I think we’ll have a major focus on rolling stocks exports in the near term,” said the Chairman.
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Meanwhile, on the sharp decline in revenue and profits in H1FY25, Mithal said in the current fiscal, RITES is aiming to reach the same levels as that of FY24 in FY25. The decline is on account of the massive hit the company has taken on its consultancy business.
In H1FY25, the company’s total revenue, on consolidated basis, has declined 8.6% on year, to Rs 1,070 crore. And on standalone terms, it has fallen by 8.3% to Rs 1,029 crore. Revenue from consultancy–which has a share of about 50% in total–has declined 8.4% on year in the first half, and by 7.4% in Q2FY25.
“The fall is a consequence of massive decline in quality assurance (QA) business, and not so much from project consultancy,” Mithal said. “But we have received new consultancy orders, and that would add to the numbers starting FY26 onwards…in fact,
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