IRCTC Q4 Results: Net profits jumped 30%, Rs 2 per share dividend declared

IRCTC, the railway catering and ticketing major recently reported its results for the Jan - Mar ‘23 period. The majority owned Government company witnessed a rise in both revenues and net profits aided by a revival in travel demand post the pandemic years.

After a stellar run in 2021, the IRCTC share price performance has been muted in recent times. In 2023 so far, the IRCTC share price has eased by close to 2% while over the past year it has declined by more than 9%.

So, how did this rail PSU perform in the March quarter? What were the IRCTC revenues reported in the Jan - Mar ‘23 period? Did the IRCTC margins improve? What were the IRCTC profits in the March quarter? What was the IRCTC dividend? Let’s try and decode!

Decoding IRCTC Q4 Earnings

IRCTC revenues:

• IRCTC reported revenues of Rs 965 crores for the Jan - Mar ‘23 period, up 39.7% from the previous year. Growth across all the major revenue segments due to a revival in travel activities in the country led to this revenue jump.
   
• Revenues from the Catering and Ticketing segments contributed the majority of the revenues of the company. Catering revenues for the March quarter were about 396 crores which denotes a jump of 49% from the previous year. However, revenues from the ticketing segment rose by a mere 0.9% yearly to Rs 295 crores in the March quarter.
   
• Interestingly, the revenues from the Rail neer segment witnessed a 34.4% yearly jump to Rs 73.4 crores in the Jan - Mar ‘23 period. Meanwhile, the Tourism revenues saw the sharpest yearly growth at 155% to Rs 138.5 crores for the March quarter. This can be attributed to the holiday and wedding season activities in the country during this particular period.

IRCTC margins: Operating margins at the end of the March quarter stood at 33.6%. This denotes a decline from the previous year’s figure of 40.3%.

However, operating profits rose by 16.5% from the prior year to Rs 324.6 crores in the Jan - Mar ‘23 period.

IRCTC dividend: IRCTC declared a dividend of Rs 2 per share. This is in addition to the interim dividend of Rs 3.5 per share declared in February, 2023.

IRCTC net profits: In the Jan - Mar ‘23 period, IRCTC reported net profits of Rs 279 crores. This denotes a yearly growth of 30.4%.

In the year-ago period, the company clocked net profits of Rs 214 crores.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.