IRCTC stock falls 5% amidst muted Q4 earnings; margin narrows 220 bps

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) fell up to 4.6 per cent to Rs 1,030.35 per share on the BSE in Wednesday’s intraday deals. This came after the company delivered muted earnings for the January-March quarter of the fiscal year 2023-24 (Q4FY24)

IRCTC registered a two per cent year on year (YoY) rise in its consolidated net profit to Rs 284 crore in Q4FY23, compared to Rs 279 crore in the corresponding period of the previous year. 

It recorded a 19 per cent surge in revenue from operations to Rs 1,155 crore during the March quarter, as opposed to Rs 965 crore in the preceding year. 

The PSU board recommended a final dividend of Rs 4 per share, constituting 200 per cent of the paid-up share capital, with a face value of Rs 2 each for FY24, subject to shareholder approval. 

IRCTC's earnings before interest, taxes, depreciation, and amortisation (Ebitda) experienced an 11.6 percent upswing to Rs 362.4 crore, in contrast to Rs 324.6 crore in the corresponding period last year. 

The margin was recorded at 31.4 per cent in Q4FY24, down 220 basis points from 33.6 per cent in the same quarter of the previous year.

The contribution of internet ticketing to overall revenue dropped to 31 percent from 32.8 percent the previous year and 37.1 percent in FY23. IRCTC's catering business expanded by 34.1 percent to Rs 530.8 crore. 

The shares of the company have zoomed 47.6 per cent in the last six months, whereas the stock has rallied over 60 per cent in the last one year.

At 09:41 AM; the stock of the company was trading 4.49 per cent lower at Rs 1034.05. By comparison the S&P BSE Sensex fell 0.31 per cent. IRCTC is presently trading at a price to earnings multiple of 74.84 times.

IRCTC is an Indian public sector undertaking responsible for offering ticketing, catering, and tourism services in partnership with the state-owned Indian Railways.