Rs 2.65 Dividend Confirmed: Huge Rs 8877 Cr Order Book & 95% Dividend Payout Ratio In FY25: RITES A Top Buy?

With a wide range of services and a broad geographic reach, RITES Limited, a Navratna Public Sector Enterprise, is a major force in India's transport engineering and consultancy market. With over 50 years of expertise, the organization has worked on projects in more than 55 countries across Asia, Africa, South America, and the Middle East. Despite RITES's poor Q4FY25 performance, the PSU behemoth received over 150 orders totaling over Rs 1418 crore, setting a record-breaking order book of Rs 8877 crore as of March 31, 2025. According to RITES, a leading dividend-paying PSU stock, its dividend payout ratio for FY25 is 95.4% of its profits. For FY25, the Board of Directors recommended a final dividend of Rs 2.65 per share, amounting to Rs 127 crore.

Rites Dividend

The Board of Directors "recommended Final Dividend of Rs. 2.65/- per share (i.e. 26.50%) on 48,06,03,774 equity shares of face value of Rs. 10 /- each of the Company for the financial year 2024-25, subject to approval of the same by shareholders in the ensuing 51st Annual General Meeting of the Company. Upon approval of shareholders, the dividend declared will be paid within thirty (30) days of declaration, subject to deduction of applicable Tax at Source as per the provisions of the Income Tax Act, 1961 and rules framed thereunder," said the PSU company in a stock exchange filing.

Rites Q4 Results

From Rs 136.67 crore in Q4 FY24 to Rs 141.33 crore in Q4 FY25, the company's consolidated net profit jumped by 3.40%. During the quarter ending March 31, 2025, revenue from operations decreased by 4.32%, from 643.25 crore in Q4 FY24 to Rs 615.43 Cr. In Q4 of FY25, the overall expenses were down 7.32% YoY to Rs 447.90 crore. With margins of 30.8%, the company's EBITDA increased 6.2% to Rs 189 crore.

With revenue dropping 9.58% to Rs 2,217.81 crore in FY25 from Rs 2,452.85 Cr in FY24, the company's consolidated net profit on a full-year basis dropped 14.44% to Rs 423.66 crore from Rs 495.20 Cr in FY24.

Mr. Rahul Mithal, Chairman and Managing Director, RITES Limited, said, "Concerted efforts this quarter in execution of high-margin projects has helped us achieve our objective of coming as close as possible to our previous financial year's performance, in line with our business strategy for this year."

Mr. Mithal said, "With an all-time high order book of Rs 8877 crore and maintaining the trend of 'one order a day', we have built a strong platform for the year ahead, aiming for appreciable growth in our revenue."

Rites Share Price Target

"RITES is showing good strength after bouncing from the ₹235 support level. It has crossed key moving averages and is now trading with a positive bias. If the stock manages to stay above ₹245, it can move towards ₹260-₹270 in the short term. Volume is improving, and indicators like MACD and RSI show positive momentum. A close below ₹235 may weaken the setup, so traders should watch that level as a stop-loss," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

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