The Indian Railway Catering and Tourism Corporation Limited (IRCTC) reported its Q1FY24 results, which had an impact on its stock performance. Here are the key highlights from their announcement:
- Profit Decline: IRCTC reported a 7% year-on-year (YoY) decline in profits to Rs 231 crore for the quarter ended June 2023. The decline was attributed to exceptional losses and lower operating margins.
- Revenue Growth: Despite the decline in profits, the company’s revenue from operations saw a significant jump of 17.5% to Rs 1,001.8 crore in Q1FY24 compared to the same quarter last year.
- Segment Performance:
- Catering Revenue: The catering segment’s revenue increased by 35% YoY to Rs 471 crore.
- Internet Ticketing Revenue: Revenue from the internet ticketing business declined by 4% to Rs 290 crore.
- Tourism Revenue: Revenue from the tourism business spiked by 58% to Rs 130 crore.
- EBITDA Growth and Margin: Earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter grew by 6.9% to Rs 343 crore. However, the EBIDTA margin declined to 34.2% from 37.6% in the same quarter last fiscal.
- Stock Performance: Shares of IRCTC declined around 1% on August 10, following the announcement of its Q1FY24 results. As of 9:40 am, the stocks were trading lower at Rs 637.85, down nearly 2% from the previous day’s close.
IRCTC was established in 1999 with the goal of upgrading, professionalizing, and managing catering and hospitality services at railway stations, on trains, and other locations. Additionally, IRCTC aims to promote domestic and international tourism. The company’s financial performance in Q1FY24 showed mixed results across its different business segments.
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