Shares of RITES Ltd., the state-run railway company, experienced a decline on Wednesday following the announcement of its June quarter results. Despite declaring a bonus issue and a dividend payout, the company reported lower revenue and profits.
Bonus Shares and Dividend Announcement
– Bonus Shares: RITES will issue one bonus share for every share held by shareholders as of the record date. This is the company’s second bonus issue, with the previous one in 2019 being one bonus share for every four shares held.
– Dividend: The company has declared a first interim dividend of ₹2.5 per share. The record date for this dividend is August 8, 2024. The record date for the bonus issue will be announced later.
Q1 Financial Performance
– Net Profit: ₹90.4 crore
– Change: Declined by 24.4% from ₹119.6 crore in the same quarter last year
– Revenue: ₹486 crore
– Change: Decreased by 10.8% from ₹544.3 crore in the previous year
– EBITDA: ₹105.8 crore
– Change: Dropped by 34.5% from the previous year
– EBITDA Margin: 21.8%
– Change: Narrowed by 800 basis points from 29.8% in the same quarter last year
Stock Market Reaction
– Current Trading Price: ₹740.85
– Change: Declined by 1.9% following the earnings announcement
– Year-to-Date: The stock has risen 47% in 2024 and 60% over the last 12 months
Summary Table
| Metric | Value | Change |
|---|---|---|
| Net Profit | ₹90.4 crore | -24.4% year-on-year |
| Revenue | ₹486 crore | -10.8% year-on-year |
| EBITDA | ₹105.8 crore | -34.5% year-on-year |
| EBITDA Margin | 21.8% | -800 basis points year-on-year |
| Bonus Shares | 1:1 ratio | One bonus share for each share |
| Dividend | ₹2.5 per share | First interim dividend declared |
| Current Trading Price | ₹740.85 | -1.9% post-earnings announcement |
| Year-to-Date Performance | +47% | 2024 growth |
| 12-Month Performance | +60% | Growth over the last year |
Despite the disappointing financial results, the bonus issue and dividend payout aim to reward shareholders. T
