IRCTC Q1 Results Highlights: Net Profit Surges 33% to ₹308 Cr

IRCTC posted a net profit of ₹308 crore for the first quarter of the 2024-25 fiscal year, reflecting a 33.3% growth. The company’s revenue increased by 11.8% to ₹1,120.15 crore.

IRCTC Q1 Results Highlights

• The Indian Railway Catering and Tourism Corporation Ltd (IRCTC) reported a net profit of ₹308 crore for the first quarter of the 2024-25 fiscal year, marking a 33.3% increase compared to the same period last year, driven by higher ticket sales.
• On August 13, IRCTC shares were trading 0.3% lower at ₹922.05 each on the BSE, having declined by about 8% over the last three months.
• The company's revenue rose by 11.8% to ₹1,120.15 crore, as per a regulatory filing on August 13. Despite exceeding analyst expectations for its bottom line, the company narrowly missed predictions for its top line.
• Prabhudas Lilladher had anticipated a net profit of ₹306.5 crore and projected net sales to reach ₹1,130.8 crore.
• For the quarter ending March 31, 2024, IRCTC reported consolidated sales of ₹1,154.8 crore and a net profit of ₹284.18 crore.
• As of the latest data, IRCTC's market capitalization stands at ₹73,340 crore, according to the Bombay Stock Exchange (BSE). 
• The company's earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter stood at ₹428.55 crore, reflecting a nearly 30% increase. The EBITDA margin was 38.3%, up from 33% in the previous year.
• The decline in margin is attributed to the increased contribution from lower-margin segments such as catering, state teertha, and tourism, compared to the higher-margin internet ticketing segment.
• The share of internet ticketing in overall revenue decreased slightly to 28.5% from 29% in the previous year. As of the second quarter of FY24, the Indian government holds a 62.4% stake in the company, while foreign portfolio investors and domestic institutional investors own 7.1% and 10.5%, respectively. The remaining 20% is held by regular shareholders.

According to Moneycontrol's Pro Research team, IRCTC's valuation has outpaced its fundamentals despite the growth potential in the railways and tourism sectors and its unique monopoly position.

"We are waiting for a correction before adopting a more constructive stance," the team noted.

About IRCTC

IRCTC remains the sole entity authorized by the Indian government to provide online railway tickets, catering services on trains, and packaged drinking water at railway stations across India.

Over the years, the company has expanded its offerings to include a diverse range of tourism and hospitality services, including luxury train tours, hotel bookings, and holiday packages.