Ritco Logistics completes Q2 FY23 on a Strong Note

Performance Highlights: Q2 FY23 vs Q2 FY22

- Total Income of Rs.191.21 Crores, growth of 29.8% y-o-y
- EBITDA of Rs.13.44 Crores, growth of 19.5% y-o-y
- EBITDA growth in absolute numbers though a marginal decline in %
- PAT of Rs.6.4 Crores, growth of 48.4% y-o-y
- PAT margin at 3.3%, growth of 14.3% y-o-y

Commenting on the performance, Mr. Manmohan Pal Singh Chadha, Chairman, said: "Q2 FY23 started on a strong note with robust pick-up in the economic and business activities after a subdue first quarter due to the impact of second wave of Covid-19. Strong recovery in demand and supply was visible with the onset of the festive season. The Index for Industrial Production registered a month-on-month growth and similarly the E-way bill generation also registered a growth of 41% Q-o-Q and 19% Y-o-Y." Our growth for the quarter was propelled by strong recovery in business activities of our key customer industries and SMEs.

Our EBITDA for the quarterstood at Rs.13.44crores, a growth of 19.5% y-o-y with margins of 7.03%. The margins were slightly lower compared to Q2 2022 due to increase in employee costs as we are building teams for our newly launched services and on account of lower depreciation. However, we expect margins to improve in the coming quarters with pick up in utilization levels. Profit after Tax stood at Rs.6.4 crores, a growth of 48.4% y-o-y

Given the robust demand environment and increasing enquiries from our clients, our senior management team remain committed to enhance Ritco Logistics value proposition by expanding its service offerings while maintaining an asset light model. We are delighted to announce that we have launched Rail Container service offering which provides high value services at lower cost compared to surface transportation and so far, we have received positive response from our customers. Though these new services are at a nascent stage, we remain confident that the contribution is expected to improve in the medium term. Looking ahead, the recently launched 'PM Gati Shakti National Master Plan' by our Prime Minister for multimodal infrastructure connectivity to economic zones which is designed to include projects under the existing Bharatmala, Sagarmala, Udaan, expansion of railway network, inland waterways is expected to aid in seamless movement of goods and improve the ease of doing business. These new initiatives coupled with strong pick-up in economic activities, ongoing festive season, increasing demand from the rural areas due to longer than expected monsoons, increasing vaccination and declining Covid cases, will drive demand in the upcoming quarters. We remain confident in our ability and on our superior product offerings to capitalize on the new opportunities and deliver sustainable growth.

Shares of Ritco Logistics Ltd was last trading in BSE at Rs. 174.90 as compared to the previous close of Rs. 167.55. The total number of shares traded during the day was 204 in over 13 trades.

The stock hit an intraday high of Rs. 174.90 and intraday low of 165.70. The net turnover during the day was Rs. 34991.00.

Source : Equity Bulls

Keywords

RitcoLogistics INE01EG01016 Q2FY23 H1FY23 ResultUpdate