Rites Ltd

#CSStart#

As your Company ‘Marks the Gold’, the 50^th anniversary, I am filled with a sense of pride as I look at the illustrious legacy and the journey that has brought us to this remarkable milestone. Over the past five decades, your Company has grown from humble beginnings to being granted the prestigious Navratna status this year, committed to delivering consistent results and creating value for stakeholders.

Fifty years ago, our founders laid the groundwork for what has become a thriving and resilient organisation and I feel truly humbled as we pay gratitude to the founders and predecessors for their dedication & commitment and the continued trust reposed by all our stakeholders. In the year that went by, your Company achieved a consolidated revenue of

2,539 crore against 2,730 crore in

FY23. The operating revenue, excluding other income, stood at 2,453 crore against 2,628 crore in FY23 mainly due to the impact on two fronts the export revenue, and the opening up of the Indian Railways quality assurance works among four players. The fall in revenue on account of these two high-margin businesses also led to a fall in profits and profit margins. Profit Tax stood at 670 crore as against 774 crore in FY23, and Profit After Tax at 495 crore as against 571 crore in FY23. Identifying these two challenges at the beginning of the financial year itself, we had a three-pronged strategy:

• Leveraging our core strength & expertise, with increased focus on project consultancy & effective execution, your Company achieved highest-ever consolidated consultancy revenue of 1,289 crore in FY24. Turnkey and leasing segments also recorded the highest-ever revenue of 903 crore and 138 crore, respectively.

• Bidding aggressively and competing globally, your Company not only broke the nearly four-year drought of no Export orders but also secured orders exceeding 2,300 crore during FY24. Furthermore, your Company achieved the target of becoming a '1 order a day

Company' by Q3, a milestone we are confident your moving forward.

• Taking the challenge of the changed dynamics of the Quality Assurance business head on, we pursued several possible opportunities and by the end of the year, your Company had a substantial volume of new business with a diverse client base for this vertical. of having expertise across nearly all sectors of Infrastructure Consultancy, a number of important projects were completed this year. Redevelopment of the Ayodhya Dham Railway Station, consultancy services for the Gwalior Airport, Nagpur Metro Phase-I, New Umbergaon-Sachin stretch on Western Dedicated Freight Corridor, Railway Electrification of about 512 RKM, Railway sidings at coal, power and steel plants, Highway projects across the country and abroad, DPR for tunnels between Abu Road and Taranga Hill, DPR for a Multi Modal Logistic Park at Kalinganagar in Odisha, the Sholingpur Ropeway in Tamil Nadu, Comprehensive Mobility Plan for Chandigarh Tricity were a few examples of our varied skill and wide multi- sectoral presence. fi Building on the vision for ‘Green’ Consultancy, the Sustainability Unit expanded its horizon into becoming the ‘Sustainability & Green Mobility Unit,’ focusing on seizing opportunities in this emerging domain. Under the ‘RITES Videsh’ strategic initiative, a focal point for consolidating international business revenue in both Exports and Project Consultancy, projects are being aggressively pursued across continents. The resilience of your Company to the changing market dynamics has encouraged the Board of Directors to recommend

1:1 Bonus Equity Share for shareholders on July 31, 2024. Your Company’s Board of Directors has also recommended 5 per share as a final dividend in dividends totaling 13 per share which have already been paid during the year.

The total dividend of 433 crore at 18 per share, on accrual basis, takes the dividend payout to the highest ever i.e. 95.2% of the profits earned. Your Company’s Subsidiaries & Joint Ventures, REMC Ltd., SRBWIPL and RAPL have contributed ably to the overall performance. During FY24, REMC Ltd. registered the highest-ever total revenue of 153 crore and Profit After Tax of 81 crore, up by 30.9% & 37.6%, respectively, over FY23. It continued playing a pivotal role in Indian Railways’ Net Zero mission facilitating the procurement of 874.5 MUs of green energy this year. SRBWIPL delivered the first private client order of 186 wagons and achieved 296 crore as total revenue and 8.06 crore as profit, giving the dividend amounting to 2.40 crore to its shareholders. RAPL is aggressively pitching to secure orders across sectors in the African region. ‘Changing Lives,’ our CSR initiative, encapsulates a large gamut of endeavours including health, women empowerment, and skill development, with an emphasis on aspirational districts across the country. With a contribution of 13.31 crore towards CSR activities in FY24, your Company underscores its commitment to creating a lasting and holistic impact, enhancing social value.

Guided by a strong value system, your Company also takes pride in being a responsible corporate entity, adhering to laws and regulations, emulating best corporate governance practices, and fostering a culture of compliance, accountability, transparency, and ethical conduct across the organisation. This commitment to the highest degree of compliance and transparency was recognised with the ICAI Award for Financial Reporting and the South Asian Federation of Accountants (SAFA) Award for the Best Presented Annual Report.

As the shift to competitive bidding Company’sUSP across sectors increases, your Company is continuously striving to become more agile, tackling the evolving dynamics with greater effectiveness. And while this presents a challenge, we perceive it as an opportunity to tap new clients. With a focused approach and a commitment to devising strategies to be more competitive and increase our win ratio, the steady influx of fresh orders and an order book of 5,690 crore at the year’s end reinforce our confidence to continue building on our legacy, fuelled by the same passion and purpose that has defined us for half a century.

None of the above achievements would have been possible without the continuous support and guidance of our parent Ministry and our stakeholders, for which we are grateful. As we look to the future, with the trust of our clients, the strength of our capabilities, the dedication of ‘Team RITES,’ and the guidance of our Board, we remain confident in our ability to realise our dream of achieving the global benchmarks of a ‘Go-To Programme Management Consultant’ for infrastructure projects across sectors. As we ‘Dare to Dream,’ what cannot and will not change is our commitment to our core values of: Integrity,

Professionalism and the relentless pursuit of Excellence. With Best Wishes, Rahul Mithal tothe threeinterim