IRCTC shares fall marginally despite Q2 net profit, revenue jump; stock up 5% YTD
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IRCTC is the largest provider of catering services to the Indian Railways
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) were trading mildly in red on November 8 despite the company reporting a healthy set of numbers for the quarter ended September 2023. Its net profit jumped 30 percent on-year to Rs 294.67 crore due to higher ticketing and catering sales. The railway firm’s revenue rose 23 percent YoY to Rs 995.31 crore.
At 10:18 am, IRCTC shares were trading marginally lower at Rs 677.20 on the National Stock Exchange. So far in 2023, the stock has risen around 5.58 percent.
IRCTC is the only entity authorised by the Indian government to provide online railway tickets, catering services to railways, and packaged drinking water at railway stations and trains in India. It has expanded its services to include a wide range of tourism and hospitality offerings, such as luxury train tours, hotel bookings, and holiday packages.
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IRCTC’s sales from state teertha surged 119 percent on-year to Rs 64.84 crore in the quarter under review. The catering segment, which is the second-largest revenue contributor, witnessed a 29-percent rise in sales at Rs 431.5 crore, while the sales for the tourism segment jumped 39 percent to Rs 96.55 crore in the reported quarter.
Along with Q2 earnings, IRCTC board approved the formation of a wholly-owned subsidiary (WOS) for IRCTC I-Pay business, subject to the approval of registrar of companies and other appropriate authorities.
It also declared an interim dividend of Rs 2.50 per equity share of face value of Rs 2 each for the financial year 2023-24. This is 125 percent of the paid-up share capital amounting to Rs 160 crore. November 17 has been fixed as the record date for the dividend.
Also Read | IRCTC Q2: Net profit rises 30.36% to Rs 294.67 crore, revenue up 23.51%
Earlier this month, Devyani International, which operates brands like KFC, Pizza Hut, and Costa Coffee in India, joined hands with IRCTC to bid for railway food court contracts.
IRCTC is the largest provider of catering services to the Indian Railways, and this move, which will take the form of a joint venture between the two companies, came as a part of the government’s plan to modernise railway stations.
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