RITES Aims for Export & Consultancy Boost: CMD

RITES, a railway consultancy firm, plans to aggressively pursue export and consultancy contracts in the upcoming fiscal year (2023-24) to offset the decline in revenue from its quality assurance/inspection division within the Indian Railways. According to Rahul Mithal, the company's CMD, RITES experienced a decrease in revenue and net profit during the first quarter of 2023-24 primarily due to the reduction in rates for quality assurance/inspection tenders by Indian Railways. Mithal noted that the new railway inspection rates are approximately one-fifth of the previous rates, resulting in a substantial impact on RITES' earnings, especially since about 60 percent of their quality assurance revenue is derived from railway tenders. RITES, categorized as a Miniratna Schedule ‘A’ Central Public Sector Undertaking under the Ministry of Railways, intends to counter this setback by actively seeking international contracts and focusing on consultancy projects. Mithal revealed that RITES has secured opportunities to provide wagons and locomotives to Mozambique Railways, as well as rolling stock to the National Railways of Zimbabwe. The company also aims to increase its consultancy work, with 70 projects won in the last quarter, 60 of which were for consultancy services. RITES aims to transition into a predominantly consultancy-focused firm, aiming for 50 percent of its revenues to come from this segment. Despite the challenges, RITES maintains its commitment to its capital expenditure for the year 2023-24, aligning with the previous year's investment. Additionally, Mithal expressed optimism about the company's financial recovery and its strategic focus on enhancing its bottom line. See also: RITES, IRFC collaborate for rail innovationRITES invites bids for Package-2 of railway project in Talcher