IRCTC Q3 results declared. Profit rises 22% YoY. Here are other insights

Quarterly results of IRCTC

IRCTC annual jump in net profits

The primary ticketing and tourism vertical for the Indian Railways, IRCTC, declared the third quarter results for the financial year 2023-24. The results were impressive, as the company posted a 23% YoY jump in net profits. Here’s a look at the major highlights of the Q3 results –

  • Net profit 

The company’s net profit rose to Rs.256 crores after the October-November-December quarter of the financial year 2023-24. This was an annual jump of 22% compared to the reported profit of Rs.209 crores in Q3 of the financial year 2022-23. In the last quarter, the net profit was reported at Rs.226 crores, and this quarter’s profit also shows a sequential jump.

  • Revenue

IRCTC reported an impressive 70% YoY jump in its revenue which stood at Rs.918 crores in Q3FY2023-24 compared to Rs.540 crores in Q3FY2022-23. Sequentially, the revenue increased 13% as the figure reported last quarter was Rs.806 crores.

The growth in revenue can be attributed to all the verticals of IRCTC. Here’s a segment-wise breakdown of the revenue –

  • Catering Vertical – 275% YoY growth, from Rs.105 crores to Rs.394 crores
  • Rail Neer Vertical – 55% YoY growth amounting to Rs.79 crores.
  • Tourism Vertical – 79% YoY growth in revenue which stood at Rs.122 crores.
  • Internet Ticketing Vertical – 4% YoY slump in revenue, which fell from Rs.313 crores to Rs.301 crores.
  • Operating profit

IRCTC posted a 16.7% YoY jump in its EBITDA, which grew from Rs.279.2 crores to Rs.325.8 crores. The operating profit margins decreased from 51.7% in Q3FY2022-23 to 35.5% in Q3FY2023-24. The reduction in the operating profit margins was attributed to the increased expenses in catering and tourism verticals.

  • Dividend declaration

The company declared an interim dividend of Rs.3.50 per share for the third quarter of the financial year 2023-24.

IRCTC Share Performance

After IRCTC declared its results, the company’s shares have not shown considerable volatility. Here’s how they have performed as of 16th February 2023 –

IRCTC Share Performance

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A word for investors

IRCTC is a major player in the tourism, ticketing, and catering industry. If you have invested in the company's shares, you can hold onto them until the price rises. For new investors, the investment can prove profitable since the Union Budget 2023 has made a higher budget allocation to railways, which might also result in increased revenues and profits for IRCTC.

That being said, assess the fundamental and technical details of the company, consider your risk appetite and investment horizon, and then make an informed decision.

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