Following the release of the organization’s June quarter results on Wednesday, shares of the state-run railway company RITES delivery authorised Ltd. decreased. Even though the corporation approved a bonus issuance of shares, the stock dropped.
For each share that owners own as of the official date, RITES will issue a single bonus share. This is the second time the business has been giving away shares. RITES awarded one extra share for each four shares that stockholders owned in 2019.
In addition to the bonus problem, RITES has announced a first interim a delivery authorised, which will be paid at a rate of ₹2.5 per shares, with August 8, 2024, set as the record date.
The official closing date for the share bonus delivery authorised will be announced soon. RITES reported a 24.4% decrease in net profit to ₹90.4 crore for the June quarter. The net profit of ₹119.6 crore was reported by the company for the same quarter in the previous year.
In addition, RITES revealed a 10.8% decline in its top line from 544.3 crore to 486 crore in the same period last year.
For the quarter, earnings before interest, tax, depreciation, and amortisation (EBITDA) decreased by 34.5% compared to the same period previous year to ₹105.8 crore. At the same time, margins shrank by 800 basis points to 21.8% from 29.8%.
The performance of the following RITES delivery authorised segments over the quarter is listed: Revenue from the domestic consulting sector decreased by 5.3% to ₹255.5 crore. Revenue from abroad consultancy fell by 53.6% to ₹15.9 crore.
Moreover, export delivery authorised dropped to ₹4.96 billion, an 87% annual decline. Domestic leasing delivery authorised increased to ₹33.7 crore, or 9.4%. Turnkey building projects for domestic companies saw a 3.8% increase, totalling 170.7 crore. Revenue from the production of power fell 23.1% to ₹5 crore from the previous year.
Following the earnings announcement, RITES shares delivery authorised closed 5% lower at ₹717.5. The stock has increased by 45% in 2024 thus far. The stock is up 60% in the past 12 months.
First published at 1:59 PM IST on July 31, 2024. Visit CNBC-TV18 to view our comprehensive market coverage, company announcements, and real-time stock market updates. Additionally, watch CNBC-TV18, CNBC Awaaz, and CNBC Bajar live while on the go!
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Is RITES a wise purchase:
Five analysts are the ones who started covering RITES. One analyst has rated it as a buy, while two analysts give it an enthusiastic buy recommendation.
What does a 5-1 ratio of bonus shares mean:
When a company offers a 5:1 bonus share, for example, it indicates that the shareholder will receive 1 bonus share for every 5 shares held in their Demat account as of the day of recording. That means you will get 20 bonus shares if you currently own 100 of the shares of that company.
What will be RITES’s last dividend in 2024:
RITES has issued a shareholder dividend of 180.00%, or Rs 18 per share, for its fiscal year ending in March 2024. With the share price of Rs. 667.15 currently, this translates into a 2.7% yield for the dividend. For the past five years, the company has regularly distributed dividends and has a strong dividend track record.
Is the RITES share increasing:
The Letter of Intent to conduct consultancy work on building a hospital in Amravati, Maharashtra, was received by the organisation last week. According to reports, the project will cost roughly ₹321.3 crore. RITES’s stock is currently trading 6.2% higher at ₹708.9. As of right now in 2024, the stock has increased 40%.