IRCTC Q2 results, Profit Up by 8.1% y-o-y

Indian Railway Catering and Tourism Corporation (IRCTC) reported a positive financial performance for Q2 FY25, with increases in both revenue and net profit. IRCTC’s total income rose to ₹1,123 crore, reflecting an 8.1% year-over-year (YoY) growth from ₹1,039 crore in Q2 FY24. The company also declared an interim dividend of ₹4 per share.

Key Financial Metrics

Total Revenue: ₹1,123 crore, up 8.1% YoY from ₹1,039 crore.

Net Profit: ₹307.8 crore, a 4.5% increase from ₹294.7 crore in Q2 FY24.

EBITDA: Marginally increased by 1.7% YoY to ₹372.79 crore.

EBITDA Margin: Slight decrease of 190 basis points, now at 35%.

Segment Performance: 

• Catering: Revenue from catering services grew 11.68% YoY to ₹481.95 crore, up from ₹431.52 crore.
• Internet Ticketing: Internet ticketing revenue rose by 13.36% to ₹370.95 crore, compared to ₹327.50 crore in Q2 FY24.
• Tourism: The tourism segment witnessed a decline, with revenue dropping by 27.35% YoY to ₹124.44 crore from ₹158.48 crore.

Management's Take: "Strong growth driven by expansion of tourism medium via trains. Outlook remains positive."

Stock Reaction: IRCTC stock showed minor gains of about 1% in early trading, reaching a high of ₹883.55.

Management Commentary:

The company’s board approved an interim dividend of ₹4 per share (200% of the paid-up share capital), amounting to a total dividend payout of ₹320 crore. The record date for this dividend is set for November 14, 2024. The management is optimistic about the future as in being leader helping the company’s strong growth driven by expansion of tourism medium via trains. Outlook remains stagnantly positive.

Stock Market Reaction

On November 4, IRCTC’s share price closed at ₹816.20 on the BSE, marking a 1.89% decline from the previous trading day. The company’s market capitalization stands at approximately ₹65,296 crore. Following IRCTC's Q2 FY2025 results announcement on November 4, 2024, its stock showed minor gains of about 1% in early trading, reaching a high of ₹883.55. Investors responded positively, partially due to the anticipation of an interim dividend, which will be confirmed later in November with a record date set for November 14, 2024. The company's stock performance has been somewhat mixed over recent months, experiencing a decline in prior quarters but gaining traction post

About the IRCTC

in December 2023, IRCTC announced plans to expand its non-railway catering business across India. It has established hospitality outlets within nine organizations, including the Department of Telecommunications in New Delhi, Calcutta High Court, and UP Secretariat in Lucknow, and aims to commission an additional 15 catering units nationwide.