IRCTC reports net profit increase amid higher ticket sales

The IRCTC board has announced a Final Dividend of Rs 4 for each share of face for the financial year 2023-24.

Financial Performance

Indian Railway Catering and Tourism Corporation Ltd (IRCTC) reported a net profit of Rs 284 crore for the March quarter of FY24, marking a 2 percent increase from the same period last year. 

This rise is attributed to higher ticket sales. The company’s revenue for the quarter came in at Rs 1,154.8 crore, up 20 percent year-on-year, according to a regulatory filing on May 28.

Analysts’ Expectations and Market Reaction

Despite the growth, IRCTC’s financial performance fell short of analysts’ expectations. 

Prabhudas Lilladher, a leading brokerage firm, had anticipated a net profit of Rs 306.5 crore, reflecting a 21.2 percent year-on-year increase and a 2.5 percent decrease quarter-on-quarter. Additionally, the firm expected net sales to rise by 17.2 percent year-on-year (up 1.1 percent quarter-on-quarter) to Rs 1,130.8 crore.

Dividend Declaration

The IRCTC board has declared a final dividend of Rs 4 per share for the financial year 2023-24, rewarding shareholders amidst the company’s mixed performance.

Market Capitalisation and Stock Performance

As of the latest data from the Bombay Stock Exchange, IRCTC’s market capitalization stands at Rs 87,152 crore. On May 28, shares of IRCTC closed at Rs 1,082.70 apiece on the BSE, reflecting a 1.60 percent decline.

Summary

IRCTC’s modest increase in net profit and significant revenue growth highlight the company’s ongoing expansion, particularly through higher ticket sales. However, the performance lagged behind market expectations, leading to a slight dip in share prices. 

The declared dividend demonstrates the company’s commitment to returning value to its shareholders despite the performance shortfall.