IRCTC posts Q1 profit at Rs 82 cr, board approves 1:5 stock split

After the announcement of the stock split decision, the scrip surged to an all time high of Rs 2,728

IRCTC, the tourism and catering arm of Indian Railways, on Thursday reported a net profit of Rs 82 crore for the June quarter. The company had posted a loss of Rs 24 crore in the year-ago period and a profit of Rs 103 crore the March quarter.

Revenue from operations rose 85.4 per cent to Rs 243 crore as compared to Rs 131 crore in the last year quarter.

Further, IRCTC's board has approved the proposal for a split of 1 share at a face value of Rs 10 each into 5 equity shares at a face value of Rs 2 each. This is subject to the approval of Ministry of Railways.

The company said it is being done to enhance the liquidity in the capital market, to widen shareholder base and to make the shares affordable to small investors.

After the announcement of the stock split decision, the stock was up almost 3.6 per cent from a low of Rs 2,605 in morning trade to hit an all time high of Rs 2,728. The scrip was last trading 4.7 per cent higher at Rs 2,693 on NSE. 

Segment wise, revenue from the catering segment fell 37 per cent to Rs 56 crore from Rs 89 crore in the year-earlier period.

Internet ticketing revenues rose more than 300 per cent to Rs 149 crore, while that from the tourism category more than doubled to Rs 7 crore.