MTAR sees PAT jump 47% YoY, Recommends Final Dividend of

 MTAR sees PAT jump 47% YoY, Recommends Final Dividend of
Rs.3/- Consolidated Financial Performance for FY21

- Revenue from operations at Rs. 246.4 Crs up by 15.3%

-  EBIDTA of Rs. 83.1 Crs up by 43.3%; margins at 33.7%

-  PAT of Rs. 46.1 Crs up by 47.1%; margins at 18.7%

MTAR Technologies, precision engineering solutions company engaged in the manufacturing and development of mission critical precision components and critical assemblies catering to nuclear, space, defense and renewable energy sectors has declared its Audited Financial Results for the Quarter & Year ended March 31, 2021.

The Board has recommended Final Dividend @ 30% i.e. Rs. 3/- per share (face value of Rs. 10 each) for the financial year ended March 31, 2021, subject to approval of members at the ensuing Annual General Meeting.

The Revenue from Operations stood at Rs.246.40 crores in FY21 as against Rs 213.80 crores in FY20 up by 15% (y-o-y). Earnings before interest, tax, depreciation and amortization (EBITDA) was substantially up by 43% at Rs 83.1 crore in FY21 as compared to Rs 58 crore in FY20. Profit After Tax also increased considerably by 47% to Rs 46.1 crore as against Rs 31.3 crore in FY20.

The order book stands at Rs 415.90 crore in FY21. The breakup of the same is as follows

1.       Nuclear: 29.2%

2.       Clean Energy: 34.5%

3.       Space & Defense:   36.1%

4.       Others: 0.2%

Commenting on the results and performance for Q4 & FY21, Mr. Srinivas Reddy, Managing Director for MTAR Technologies Limited said: “Despite challenges faced due to Covid-19 pandemic during the year gone by, your Company has been able navigate & has delivered resilient performance for the quarter & year ended FY21. Our revenues stood strong at Rs. 246.4 crs for FY21, a growth of 15% Y-o-Y. Our order book as on 31° March 2021 stood at Rs. 415.9 crs giving us strong revenue visibility for the coming years.

We have been able to penetrate deeper among the existing customers & are witnessing traction from new customers across geographies. Our continuous focus on the markets we operate in has reaped rich benefits with prestigious order wins & are optimistic for future as well.

At MTAR, we are continuously working on expansion of our product portfolio in developing critical hi-precision indigenous components and assemblies across sectors. We are in the process of developing associated technology for roller screws and electromechanical actuators. In addition, we are adding new capabilities by establishing exclusive facilities for precision sheet metal manufacturing and specialised fabrication at our Adibatla plant, which is expected to increase our wallet share from existing customers and add new customers. With our state of art manufacturing facilities, technology & innovation capabilities, execution strength & client stickiness, we believe we are well placed to capture the opportunities in the markets we operate.

With strong order book in hand, we maintain a positive outlook and are optimistic of sustaining the growth momentum. I would also like to thank all the share holders participating in the IPO & showing trust in our company. Moving forward, we also reiterate our confidence to create long-term shareholder value.”

Safe Harbor Statement Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward looking statements to reflect actual results changed assumptions or other factors.

RITES FY20 Revenue up by

RITES FY20 Revenue up by 22.1%, PAT up by 29.3%

Final dividend of Rs 6 per share

RITES Ltd. (NSE: RITES, BSE: 541556), the leading Transport  Infrastructure Consultancy and Engineering firm, announced its standalone and consolidated financial results for the Quarter and Year ended on 31^st March, 2020. 

        

       Highlights for FY20 Standalone Financials

      §  Total Revenue up by 23.1% to  Rs 2665 crore, highest ever

§  Achieved growth of 21.9% against targeted growth of 17% in operating revenue

§  Exports increased by 161.6% to Rs 541 crore

§  Profit After Tax up by 34.1% to Rs 596 crore, highest ever

§  Final Dividend of Rs 6 per share recommended by Board of Directors

§  Highest ever annual dividend of Rs 400 crore

     Highlights for FY20 Consolidated Financials

§  Total Revenue up by 22.1% to Rs 2735 crore, highest ever

§  Profit After Tax up by 29.3% to Rs 633 crore, highest ever

§  Order Book as on 31.03.2020 stands at Rs 6223 crore

§  EPS at Rs 24.64 as compared to last year’s Rs 18.78 up by 31.2%

   Highlights for Q4 FY20 Standalone Financials

§  Total Revenue stands at Rs 596 crore as against Rs 765 crore in Q4FY19

§  Profit After Tax stands at Rs 131 crore as against Rs 133 crore in Q4FY19

§  Margins maintained across segments

Highlights for Q4 FY20 Consolidated Financials

§  Total Revenue stands at Rs 614 crore as against Rs 789 crore in Q4FY19

§  Profit After Tax stands at Rs 144 crore as against Rs 150 crore in Q4FY19

§  EPS at Rs 5.56 as compared to last year’s Rs 5.81

Revenue and Profit Growth

Consolidated

RITES total consolidated revenue has gone up by 22.1% to Rs 2735 crore. Similarly, the operating revenue, excluding other income, increased by 20.9% and reached Rs 2474 crore. Consolidated EBITDA and PAT have gone up by 19.6% and 29.3% to `929 crore and Rs 633 crore, respectively, over FY19. This significant growth came with sustained EBITDA and PAT margins which stand at 34% and 23.2% respectively. These margins are the result of strategic focus on order execution and increased human resource productivity.

Standalone

RITES total standalone revenue has gone up by 23.1% to Rs 2665 crore. Similarly, the operating revenue, excluding other income, increased by 21.9% and reached `2401 crore in FY20. EBITDA and PAT have gone up by 21.6% and 34.1% to `867 crore and `596 crore, respectively, over FY19. Consultancy and leasing helped to maintain profit margins and EBITDA and PAT margin stand at 32.5% and 22.4%, respectively during the year. Key performance was in Exports which saw a jump of 161.6%. Consultancy revenue remained almost flat because of various reasons including disruption in March’20 and certain foreign projects suffered due to lockdown in those countries. Other than exports, leasing and turnkey also saw high growth of 16.5% and 18.7% respectively.

Q4FY20 (standalone)

Q4FY20 total revenue stands at `596 crore as against `765 crore in Q4FY19. Revenue moderated during the quarter due to lockdown and major exports shipments were already completed till Q3FY20. Similarly, the operating revenue, excluding other income, stands at `553 crore in FY20. EBITDA and PAT margin stand at 31.9% and 22%, respectively which remained intact on better margins from consultancy.

Performance of our Subsidiary and JV

Revenue from our subsidiary REMCL has remained almost flat amounting to `81 crore against `83 crore in the previous financial year. PBT has shown a slight growth of 0.6% with `50 crore against `49 crore in FY19. Revenue from this subsidiary got impacted in Q4FY20 due to low demand from railways during lockdown and maintenance work for wind mills.

Our wagon manufacturing Joint Venture, SRBWPL, has achieved a profit of `16 crore with revenue of `265 crore during FY20. The wagon manufacturing joint venture has produced and rehabilitated 1066 wagons during the last financial year.

Commenting on the results, Mr. Rajeev Mehrotra, Chairman and Managing Director, RITES Limited, said, “Notwithstanding the challenging business environment, I am pleased to share that our company has demonstrated sustained growth momentum across the segments during FY20 and again surpassed the revenue and profitability targets. Rolling stock exports remained our strategic growth area duly supported with Govt of India’s Make in India program. We achieved a major success by securing an export order of `706 crore from Mozambique for cape gauge locomotives and coaches. We plan to develop products for standard gauge countries too. ”

Dividend

After declaring 2 interim dividends of `150 crore (`6 per share) and `100 crore (`4 per share) for FY20, Board of Directors have recommended a final dividend of `150 crore (`6 per share) for FY20 which is 60% of paid-up capital. This dividend will take the dividend payout of the company to 67% for the FY20 based on the PAT of FY20 and it will make it the highest ever annual dividend declared by the company.

Growth Outlook for FY21

Commenting on the outlook, Mr. Mehrotra said, “The Company has successfully surpassed the guidance for FY20. 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.”