IRCTC Q3 profit more than doubles on low base, train ops revival

Indian Railway Catering and Tourism Corporation Ltd (IRCTC) reported a 170% jump in quarterly net profit for the three months ended December 2021 aided by revival in train operations on a low base.

The catering and tourism arm of the Indian Railways reported its December-quarter net profit at Rs 208.80 crore compared with Rs 78.08 crore a year earlier. For the three months ended September 2021, IRCTC had reported a net profit of Rs 154.82 crore.

The company’s revenue from operations grew 241% year on year to Rs 540.21 crore aided by business growth across all its segments – Catering, Rail Neer, Internet Ticketing, and Tourism – as coronavirus-related restrictions became easier. Revenue was also higher than the July-September 2021 quarter’s Rs 404.93 crore.

IRCTC’s shares ended 0.3% higher on Tuesday, in line with the broader market. The shares have lost a third of their value since touching a 52-week high in October last year but are still trading at more than twice the level of the one-year low that it hit in April 2021.

Other Key Highlights:

1) Catering services expenses rose to Rs 53.29 crore in Q3 from Rs 16.89 crore a year earlier.

2) Catering segment reported revenue for the quarter of Rs 104.65 crore against Rs 48.95 crore a year earlier.

3) Tourism expenses increased to Rs 60.36 crore in Q3 from Rs 13.29 crore.

4) Tourism segment’s revenue jumped to Rs 68.25 crore from Rs 15.46 crore.

5) IRCTC’s EBITDA surged 195% from a year earlier to Rs 279 crore in Q3.

6) The company will pay an interim dividend of Rs 2 per share.