As reported by ET Infra, Exports is a major stream of revenue and gives the company a good topline margin. RITES has emerged as the lowest bidder for export orders in Mozambique and Zimbabwe. The orders are for 10 locomotives and 300 wagons from Mozambique and nine locomotives and over 300 wagons from Zimbabwe. RITES has also received orders for doing feasibility studies for ropeways, integrated modal stations and multi-modal logistics parks from National Highways Logistics Management Limited
He said that the company received 250 orders last year and 70 orders in the first quarter of the current financial year and 42 (so far) in the second quarter.
The company’s order book at the end of first quarter is Rs 5700 crore of which Rs 2700 crore is from the consultancy business, similar amount from the turnkey segment, Rs 150 crore from the leasing business and Rs 100 crore from the subsidiary — Railway Energy Management Co. Ltd (REMCL).
The export of rolling stock, which stood at about Rs 50 crore is the biggest challenge for the company that continues to grapple with the aftershocks of the pandemic. “During the Covid period we did not get orders for about 2-2.5 years. The revenue which matured post covid were the two pre-Covid orders of Mozambique and Sri Lanka and this year our biggest challenge is to be able to get an order immediately so that it starts generating revenue by the start of the next fiscal,” Mithal added.
The company hopes to target a big chunk of African and Southeast Asian countries as their economies open up post Covid. However, those efforts are expected to bear any fruit only in the next fiscal.
As far as consultancy services are concerned, the company has bagged 42 orders, so far, in the current quarter. The company plans to increase its project consultancy stream of revenue as the segment grew 10% y-o-y and helps the company manage the hit from the exports. “Our niche strength is consultancy and our mission is to be a go-to consultancy company,” he added.
