Railway PSU RITES’s 2015-16 net profit up 11%

New Delhi, Sep 16 (IANS) Engineering consultancy company RITES on Friday reported an increase of 10.78 per cent in its net profit for the last fiscal.

According to the company, its profit after tax stood at Rs 339 crore against Rs 306 crore in the previous year.

The total income of the schedule ‘A’ Mini Ratna Enterprise under the Ministry of Railways grew by 11 per cent in 2015-16.

The company’s total income for the last fiscal stood at Rs 1,294 crore.

“RITES achieved these results despite severe competition from domestic and foreign consultancy companies,” the company said in a statement.

Rajeev Mehrotra, Chairman and Managing Director, RITES said that one of the key achievements of the company during the year was the export of broad gauge modern passenger coaches to Bangladesh Railways.

The company had secured an order to supply Bangladesh Railways with 120 broad gauge coaches during last year.

Besides, the company has also bagged a contract for the supply of 18 MG diesel electric locomotives to Myanmar Railways, Mehrotra added.

“In India, RITES has recently secured two major turnkey projects from the Ministry of Railways, for the third line in Pendra Road – Anuppur section of Bilaspur division of South East Central Railway and Gooty – Dharmavaram doubling works for South Central Railway,” the statement pointed out.

“RITES is also involved in mega transportation projects like dedicated freight corridors, metros, high speed rail studies, logistics parks, rail infrastructure and green energy etc.”

The company gave a positive growth outlook.

“With positive scenario for investments in railways and other infrastructure sectors, the company sees high growth in the coming years,” the statement said.

The company announced a dividend payout of Rs 136 crore, which is 136 per cent of the paid up share capital of the company.

“This is the highest ever dividend paid so far by the company. The company has also announced issue of bonus shares to the existing shareholders in the ratio of 1 share for every 2 shares held,” the statement added.

–IANS

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