IRCTC Results: Profits rise 167% due to low base

IRCTC is the catering and tourism arm of the Indian Railways and has given excellent returns to investors since its IPO launch in 2019. The Q3 results are out, and let us look at how the company performed in the January to March period.

Profit soar- The company reported a net profit of Rs 208.81 crore, a 167.4% rise year-on-year, and a 32% rise sequentially. During the same period last year, the company reported a profit of Rs 78.08 crore. In the September quarter, the company reported a net profit of Rs 158.57 crore.

Rise in Revenue from Operations - Year-on-Year, the revenue from operations was up from Rs 224.37 crore to Rs 540.21 crore in the December quarter, a rise of 141%. Sequentially, the revenue increased by 33.40%. 

Revenue from different segments - The Internet ticketing segment contributed 58% to the revenue. It recorded more than double growth in the December quarter with total revenue of Rs 312.86 crore. In Q3FY21, the revenue from this segment was Rs 143 crore only.

Catering is the second largest segment for IRCTC, and its contribution increased from Rs 48.95 crore to Rs 104.65 YoY in the December quarter.

EBITDA - EBITDA increased by 195% to Rs 279.17 in the December quarter from Rs 94.65 crore in the year-ago period. EBITDA margin stood at 51.6% in December 2022 compared to 42.1% in Q3 December 2022.

Dividend - The board of directors has declared an interim dividend of Rs 2 per share for the financial year 2021-22, and has fixed February 18 as the record date for its payment.

IRCTC Q3 Review

The company has reported an excellent set of numbers both in topline and bottomline. However, it is important to mention that it is on a low-base. Last year the numbers were on the lower side because of a pandemic. Pandemic has caused significant disturbance and slowdown of economic activity. However, the business activities are going gradually on track in line with the lifting of restrictions as were imposed by the State and Central governments.

ICICI Direct has a SELL call on Indian Railway Catering & Tourism Corporation (IRCTC)with a target price of Rs 758. The share price closed 0.38% higher at Rs 838.75 per share.