IRCTC's profits ran like a superfast express, now raining dividends on investors

 

IRCTC Share: The government-owned company's net profit rose 30.4 percent to Rs 279 crore in the fourth quarter. Which was Rs 214 crore in the same period last year. The revenue of the company has also increased by 39.6 percent

There is good news for IRCTC investors. IRCTC on May 29 reported a 30.4 percent rise in standalone net profit at Rs 279 crore for the quarter ended March 31, 2023. In the year-ago period, the Tourism and Ticketing Branch of Indian Railways had collected Rs. 214 crore net profit was reported. The company's revenue increased by 39.6 percent to Rs. 965 crores. Which in the same quarter period of last financial year was Rs. 691 crores.

The company's earnings excluding interest, taxes, depreciation and amortization or EBITDA rose 16.5 percent in the March quarter of the current financial year to Rs. 324.6 crores. Which in the last financial year was Rs. 278.5 crore and margin stood at 40.3 percent (YOY) against 33.6 percent

On the other hand, the revenue of the catering segment increased by 49 percent year-on-year to Rs 396 crore, which was Rs 266 crore in the March quarter last year. Revenue from the Rail Neer segment grew by 33 percent to Rs. 73 crores. Which in last year's period Rs. 55 crores. While the business of Internet ticketing last financial year was Rs. 293 crores to Rs. 295 crores.

Board Announces Final Dividend- The Board of IRCTC has also recommended a final dividend of Rs 2 per equity share of face value of Rs 2 for the financial year 2022-23. Shares of IRCTC closed up 3.40 percent at Rs 645.60 on BSE on May 29 ahead of the earnings announcement.

Internet ticketing gained momentum during the Corona epidemic. While in the financial year 2023 there is a revival through catering and tourism. The removal of the 2S category impacted the ticketing business, particularly in the second half.

According to Money Control's Pro Research team, the relatively low share of the Internet ticketing business with extremely high margins was hampering overall margins for the company. Quarter 4 saw a sequential decline in operating margin of 190 basis points and a margin decline of over 10 percent for the year. Going forward we expect the non-ticketing business to act as a key driver of growth for IRCTC.