Rites reported its earnings for the quarter ended June on Wednesday afternoon.

What Happened: The railway company’s consolidated net profit came in at ₹90 crore, down 24% from the ₹119 crore posted in the same quarter last year. The revenue from operations for the quarter stood at ₹485 crore, down 12% from the ₹544 crore posted in the corresponding quarter of the previous year.

The numbers are lower than Axis Securities estimates. The brokerage firm estimated the company’s revenue to be at ₹533 crore. The company’s profit after tax was expected to come in at ₹100 crore.

Shares of the company slumped sharply after the results came out.

The company also approved a bonus issue in the ratio of 1:1. This means for every share held, investors would get another additional share. The share price would be adjusted accordingly. The process is expected to be completed within two months from the date of approval of the board of directors. The PSU also announced a ₹2.50 per share interim dividend. The record date for dividend payment is August 8.

Price Action: RITES’ share price was down 2.78% to trade at ₹733.95 on Wednesday afternoon.

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