IRCTC Q4 Profit Doubles Aided By Strong Growth Across Segments

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Profit soars: The company reported a net profit of Rs 216 crore, a 2X growth in profit year-on-year. Sequentially, profit increased 3%. During the same period last year, the company reported a profit of Rs 106.6 crore. In the December quarter, the company reported a net profit of Rs 208.81 crore.

Rise in Revenue from Operations: Year-on-Year, the revenue from operations was up from Rs 338.7 crore to Rs 690.9 crore in the March quarter, a rise of 104%. Sequentially, the revenue increased by 28%. 

Revenue from different segments: The Internet ticketing segment contributed 42% to the revenue. It recorded revenue of Rs 292.82 crore in Q4FY22 compared to Rs 212.01 crore in the year-ago period. The revenue growth was led by catering which grew approximately four-fold to Rs 266.12 from Rs 67.38 crore in the year-ago period.

The revenue through the sale of Rail Neer climbed to Rs 51.88 crore in Q4FY22 as compared to Rs 27.80 crore in the year-ago period.

EBITDA: EBITDA increased by 92% to Rs 278.5 crore in the March quarter from Rs 145 crore in the year-ago period. EBITDA margin stood at 40.3% in March 2022 compared to 42.8% in Q4FY21.

Dividend: The board has recommended a final dividend of Rs 1.5 per equity share, at a face value of Rs 2 each, for the fiscal year 2021-22.

Management Commentary: "The business activities of the company are gradually coming on track in line with the lifting of restrictions as were imposed by the State and Central Governments,” said the firm.

The share was trading flat on Wednesday afternoon at Rs 691.30 per share.

Brokerage Radar

Brokerage Prabhudas Lilladher has maintained its HOLD rating on IRCTC shares with a DCF-based target price of Rs 648. Despite a beat on the revenue front, the firm's FY23E/FY24E EPS estimates are broadly intact as they have already accounted for positives arising from rail neer expansion and catering price hike. Recommendation of reversal in 2S sitting class to an unreserved category is also baked into the firm's assumptions given the announcement was made in March.