Earnings Review
IRCTC Jul-Sept sales growth at 14-qtr low, PAT up 4.5% YoY
This story was originally published at 21:32 IST on 4 November 2024
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--IRCTC Jul-Sept net profit INR 3.08 bln vs INR 2.95 bln year ago
--IRCTC Jul-Sept revenue INR 10.64 bln vs INR 9.92 bln year ago
--IRCTC to pay INR 4 per share interim dividend
--IRCTC Apr-Sept net profit INR 6.15 bln vs INR 5.27 bln year ago
--IRCTC Apr-Sept revenue INR 21.82 bln vs INR 19.93 bln year ago
--IRCTC Jul-Sept internet ticketing revenue INR 3.71 bln vs INR 3.28 bln
--IRCTC Jul-Sept catering revenue INR 4.82 bln vs INR 4.32 bln year ago
--IRCTC Jul-Sept rail neer revenue INR 902.20 mln vs INR 780.05 mln yr ago
--IRCTC Jul-Sept tourism revenue INR 1.24 bln vs INR 1.58 bln year ago
--IRCTC Jul-Sept internet ticketing EBIT INR 3.01 bln vs INR 2.74 bln yr ago
--IRCTC Jul-Sept catering EBIT INR 615.80 mln vs INR 742.54 mln year ago
--IRCTC Jul-Sept rail neer EBIT INR 89.84 mln vs INR 96.94 mln year ago
By Rajesh Gajra
MUMBAI – Indian Railway Catering and Tourism Corp. Ltd. recorded a weak earnings performance for the quarter ended September. The top line growth for Jul-Sept was not just subdued as compared to the year-ago quarter, but was also the lowest in 14 quarters. The net profit growth was also muted and below that in the previous quarter, but was higher than that in the Jan-Mar quarter.
The net profit of the state-owned company, in which the government holds 62.4% stake, was up just 4.5% on year at INR 3.08 billion in Jul-Sept. The company's revenue from operations increased 7.2% on year to INR 10.64 billion. Sequentially, IRCTC's net profit was nearly flat, while revenue was down 4.8%.
The multifaceted IRCTC offers internet-based ticketing and food catering services to long-distance railway passengers. The company is largely dependent on various contracts with the state-owned Indian Railways. IRCTC operates in four verticals--online ticketing of Indian Railways trains, food catering in trains and restaurants at key railway stations, bottled drinking water sold inside trains and at railway stations, and tourism.
SEGMENTAL PERFORMANCE
IRCTC's earnings performance would have been weaker but for its key segment, internet ticketing, which recorded a near 10% on-year increase in earnings before interest and tax to INR 3.01 billion, and a 13.3% rise in revenue to INR 3.71 billion. Among all verticals, the ticketing segment had the second-highest revenue share of 34.9% in the September quarter.
The revenue of the catering segment, with the highest share of 45.3% in total revenue, rose 11.7% on year to INR 4.82 billion. The catering segment's EBIT, however, fell sharply by 17% on year to INR 616 million in Jul-Sept.
IRCTC's bottled water business under the Rail Neer brand recorded the highest revenue growth among all segments, although the EBIT recorded a decline. Rail Neer sales jumped 15.6% on year to INR 902 million, while its EBIT declined 7% to INR 90 million.
The tourism segment of IRCTC was the worst performer among the four key segments in the quarter ended September. Revenue fell 22% on year to INR 1.24 billion and the segment delivered a loss of INR 30.2 million.
The total EBIT of IRCTC inched up 1.2% on year to INR 3.68 billion. While this was a drag on the company's bottom line, a substantial rise of 55% in interest income from investments to INR 484 million helped offset it partially.
For the first half of the current financial year, IRCTC's net profit rose 16.8% on year to INR 6.15 billion and revenue from operations increased 9.5% to INR 21.82 billion. The company had fared better in the June quarter as compared to Jul-Sept. IRCTC generated cash from operating activities of INR 4.34 billion in Apr-Sep against INR 3.68 billion in the year-ago period.
The board of IRCTC Monday approved an interim divided of INR 4 per share. The company has fixed Nov. 14 as the record date for paying the interim dividend to shareholders. Shares of IRCTC ended Monday at INR 816.20, down 1.9%, on the National Stock Exchange. End
Edited by Tanima Banerjee
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