#1RITES THE INFRASTRUCTURE PEOPLE Investor Presentation Financial Results: Q3'FY21 & 9M'FY21 Date: 10th February 2021#2Safe Harbor This presentation report is for distribution purpose only under such circumstances as may be permitted by applicable law. This presentation is for information purposes only without regard to specific objectives, financial situations or needs of any particular persons and does not constitute an offer, solicitation, invitation to offer or advertisement with respect to the purchase or sale of any securities of RITES Limited in any jurisdiction and no part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This presentation is not a complete description of the Company. 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RITES assumes no obligation to update or keep current the information contained herein. whether as a result of new information, future events or otherwise. 2#32 Content C 3 Financial Performance - Q3'FY21 & 9M'FY21 4 Order Book Outlook for FY 20-21 18 21 3#4I.Financial Performance - Q3'FY21 4#5On the road to Recovery *434 Cr *422 Cr Q2 Revenue from Operations on the Rise Q3 322 Cr/⚫ Q1 1> Revenue momentum picking up with improved project execution 2> Foreign consultancy income rising steadily 3> Successful completion of buy back LO 5#6Performance in Q3FY21 620 Consolidated 663 -27.5% 449 -27.6% 480 Operating Revenue Total Revenue Decrease in revenue is mainly due to ■Q3FY20 ■Q3FY21 603 -28.0% 434 Standalone 646 -28.1% 465 Operating Revenue Total Revenue . • Export deliveries not scheduled during this quarter (approx impact of ₹90 crore) Disruptions in supply chain and restrictions imposed due to pandemic Export shipments are scheduled for Q4FY21 in Crore 6#7Q3FY21 - Profits with Sustained Margins in Crore Consolidated -28. 198 -25.5% 144 150 -29.8% 147 30.6% 105 Q3FY20 22.6% 30.0% ■Q3FY21 Margins 31.7% 21.9% 214 32.2% -25.7% 159 33.1% I 200 30.2% EBITDA PBT PAT Standalone 187 -27.9% 140 135 28.9% -29.2% 99 21.6% 29.0% 21.3% EBITDA PBT PAT Margins sustained despite reduction in revenue Timely implementation of cost reduction measures helped in sustaining margins Rationalisation of manpower resulted in reduction of manpower cost by 12.4% on YoY basis *EBITDA = PBT + Interest + Depreciation + Amortization 7#8Performance in 9MFY21 1904 Consolidated -35.7% 1224 2120 -36.1% 1356 ■9MFY20 ■9MFY21 Operating Revenue Total Revenue Decrease in revenue is mainly due to 1848 -36.2% Standalone 2069 -36.4% 1315 1178 Operating Revenue Total Revenue • • Export deliveries not scheduled for 9MFY21 (approx impact of 482 crore) Disruptions in supply chain and restrictions imposed due to pandemic • Receipt of final settlement amount 91 crore from a foreign client during 9MFY20 Excluding exports, the YoY fall in operating revenue is 14% in Crore 8#9719 9MFY21 - Profits with Sustained Margins in Crore -37.1% Consolidated 680 -39.9% 452 409 33.9% 32.1% 33.4% EBITDA 30.2% PBT 489 23.1% -38.1% 676 32.7% -37.4% Standalone 645 31.2% 424 -39.9% 465 389 -37.7% 22.0% ■9MFY20 303 290 ■9MFY21 Margins 22.5% 32.3% 29.6% 22.3% PAT EBITDA PBT PAT Margins sustained despite reduction in revenue Timely implementation of cost reduction measures helped in sustaining margins Employee cost was reduced by 9.6% on YoY basis 9#10Segmental Revenue (Standalone) Q3FY21 244 29 2 - 14.3% - 4.1% 159 - 19.2% Q3FY20 285 30 91 196 Consultancy Lease Exports Turnkey Consultancy and turnkey business affected due to slow progress at sites for various reasons No exports were scheduled for Q3FY21; Export shipments are scheduled for Q4FY21 Locomotive leasing income has almost recovered to pre-covid levels in Crore 10#11Segmental Profitability Profit Margins 45.5% 39.8% 3.0% Q3FY21 111 12 -1 5 Gross Profits -16.2% +12.3% -22.3% Q3FY20 133 10 19 6 Consultancy Leasing Exports Turnkey Profit Margins 46.5% 34.0% 21.3% 3.1% Margins sustained in all segments except exports which are scheduled for Q4FY21 Cost control measures helped in sustaining consultancy & turnkey margins *Gross profits does not include Rs. 22 crore of unallocable expenses in Crore ||#12REMC Ltd Performance in Q3FY21 in Crore -9.9% 18 17 19 -9.6% 17 13 Operating Revenue Total Revenue -10.2% -13.2% _ 10 -13.8% 7 ས 19 EBITDA PBT PAT Consultancy revenue got impacted due to less traction power requirement by Railways Power generation through wind mill shown a growth of 39.7% over 9MFY20 Q3FY20 ■ Q3FY21 12#13= A Employee Productivity Continuous rationalization of manpower to improve productivity Senior Management with an avg. experience of 33+ years Experts in Engineering, Science, Finance, Economics etc. with a mix of regular, deputationists and contract employees Approx 1,400 regular skilled engineers/ professionals #) # REVENUE PER EMPLOYEE (STANDALONE) CAGR: 19.3% 0.67 0.83 0.47 0.49 0.41 FY 16 FY17 FY18 in Crore 0.44 FY19 FY20 9MFY21 No. of Employees Status 31.12.2019 31.12.2020 Regular 1985 1939 Deputation 171 134 Contract 1130 932 Total 3286 3005 13#142. Order Book 14#15Order Book Consultanc Turnkey 37% Y 38% Order Book (as on 31.12.2020) Rs. 6534 Crore REMCL 1% Consultancy Exports Rs. 2503 Crore Rs. 1424 Crore Lease Turnkey Rs. 126 Crore Rs. 2411 Crore REMC Ltd Rs. 70 Crore Exports 22% Leasing 2% Pvt & Others 29% Govt & PSU 71% * Order book also includes US Dollar denominated projects and conversion to INR of such projects has been done at the time of award of the contract * REMCL's orders book is annualised based on the last quarter's procurement contracts and wind power generation after considering Covid-19 Impact 15#16Consultancy Major Projects Secured during Q3FY21 in Crore RITES secured more than 60 projects/contracts including enhanced scope during Q3FY21. Project Scope Amount Client Expected Completion Project Management Agency for Planning, Design & Construction of Various Buildings 54.20 Indian Institute of Technology, Delhi 2025 Project Management Consultancy for Feeder line Gevra Area 22.79 South Eastern CoalFields 2022 Final Alignment design including Aerial LiDar Survey for Delhi-Ahmedabad High Speed Rail Corridor Project Management Consultancy for New Railways Siding, Laxman Project, Gevra EPMC for construction of residential Complex FSR & DPR for Ashoka Railways Siding CCL Detailed Design Consultancy Services for power supply and distribution services to Surat Metro Phase-I 14.55 National High Speed Rail Corporation Ltd 2021 12.43 South Eastern CoalFields 2022 3.70 Oil India Limited 2023 3.60 Central CoalFields 2021 5.82 Gujarat Metro Rail Corporation Ltd 2022 16#173. Outlook for FY20-21 17#18Business Outlook 01 02 03 Impact on earnings and profits of 9MFY21 due to Covid Adequate order book for execution for 2-3 years Pick-up in tendering activities and focus on mega domestic & international projects and exports 04 Pandemic resurgence in many countries is a cause of concern 05 National Rail Plan & National Infrastructure Execution improving; Export 01 shipments scheduled for 02 Q4FY21 Focus on execution while maintaining margins Order inflow picked up, further consolidation in order book expected 03 04 General business environment improving specially in India 05 Positive long-term business outlook Pipeline to provide definitive direction 18#19Thank You 19