Indian Railway Catering and Tourism Corporation Ltd (IRCTC) recently released its financial report for the first quarter of FY2024. The results present a blend of both highs and lows across various segments, painting an intricate financial canvas for the company.
The corporation observed a standalone net profit of Rs 232.21 crore for Q1 FY2024, reflecting a decline of 5.42% from Rs 245.52 crore recorded during the same quarter of the previous year. Contrasting this decline, the company’s revenue exhibited a robust growth of 17.4% year-on-year, soaring to Rs 1001.78 crore from Rs 852.59 crore during the corresponding quarter in the prior fiscal year.
While the after-tax profit showed a sequential decrease, declining 17% from the Rs 279 crore observed in the March quarter of FY2023, the revenue from operations displayed a positive momentum. This sector marked a 4% quarter-on-quarter surge from the Rs 965 crore of the preceding quarter.
Taking a closer look at individual sectors, the catering arm stood out with a noteworthy year-on-year growth of 35%, accumulating Rs 471 crore. In tandem, the Rail Neer segment reflected a promising 10% increase, generating Rs 96 crore.
However, the journey wasn’t as smooth for all segments. The internet ticketing business, for instance, experienced a marginal drop of 4%, culminating in revenue figures of Rs 290 crore, slightly lower than the Rs 302 crore reported in the same period the previous year.
But as they say, every cloud has a silver lining. The tourism sector of IRCTC emerged as the bright spot, registering a stellar 58% rise to achieve Rs 130 crore, leapfrogging the prior year’s figure of Rs 82 crore.
In terms of the company’s operational profitability, the EBITDA climbed by 6.9% year-on-year, reaching Rs 343 crore, with a maintained EBITDA margin of 34.2%.
To bolster its technological infrastructure, IRCTC’s board sanctioned an investment for the procurement of Hardware & Software. This decision, aimed at refreshing the NGeT System, is coupled with a 24×7 helpdesk. Estimated at Rs 78 crore, this investment also encompasses a three-year warranty support.
Further enhancing its corporate governance, the company has inducted M/s N K Bhargava & Co., renowned chartered accountants, as its internal auditor for the fiscal years 2023-24 and 2024-25.
On the stock market front, the announcement day proved favorable for IRCTC, with its shares registering a rise, closing 0.89% higher at Rs 648.30 on the NSE.
As the fiscal year progresses, all eyes will be on IRCTC, keenly observing its strategies and performance trajectory given the company’s instrumental role in shaping India’s railway and tourism landscapes.
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