Rs 8,790 crore order book: Railway company approves final dividend of Rs 2.65/share

At its 51st Annual General Meeting, RITES Limited announced a final dividend of Rs 2.65 per share for the financial year 2024-25. This final dividend, combined with three interim dividends of Rs 4.90 per share already paid, brings the total dividend for the year to Rs 7.55 per share, or a total payout of Rs 363 crore. The company's dividend payout ratio for the year reached 95.4% of its earnings.

Despite a decrease in revenue, RITES remained profitable in FY25, reporting a Profit After Tax (PAT) of Rs 424 crore, down from Rs 495 crore in the previous fiscal year. The company's total consolidated revenue for FY25 was Rs 2,324 crore, a decline from Rs 2,539 crore in FY24. The consultancy business was the primary revenue driver, contributing Rs 1,133 crore, while the turnkey and leasing segments generated Rs 797 crore and Rs 150 crore, respectively.

Earlier, the company secured two separate contracts from NTPC Limited. The first is a rate contract valued at an indicative Rs 78.65 crore, for the leasing of diesel locomotives to various NTPC power plants across India. The second is a specific 24-month contract valued at Rs 25.30 crore for the Mouda Super Thermal Power Project, which covers comprehensive services like maintenance for Signal & Telecom (S&T) and track, as well as the operation of the Merry-Go-Round (MGR) and Dry-Unloading (DU) systems.

About the Company

Established in 1974, RITES Limited is a leading public sector player in India's transport consultancy and engineering, offering diversified services from locomotive and train manufacturing to consultancy, exports, leasing and turnkey projects across railways, metros, airports, ports, highways, ropeways and urban infrastructure. As India's export arm for rolling stock (except Thailand, Malaysia, and Indonesia), it boasts expertise in various gauges and caters to diverse transportation needs.

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The stock has a 52-week high of Rs 370.50 per share & a 52-week low of Rs 192.30 per share and has been maintaining a healthy dividend pay-out of 98 per cent. The company has a market cap of over Rs 12,000 crore and as of June 30, 2025, its order book stands at Rs 8,790 crore. The stock has an ROE of 15 per cent and an ROCE of 21 per cent. The stock is up by 37 per cent from its 52-week low of Rs 192.30 per share.

Disclaimer: The article is for informational purposes only and not investment advice.