IRCTC Q1 net profit rises 33% to ₹307 cr

Net profit of the Indian Railway Catering and Tourism Corporation (IRCTC) surged by 33% to ₹307.7 crore in Q1 FY25, up from ₹232.2 crore in the same quarter last year, on the back of strong low-margin segment performance, according to the company's exchange filing of its first-quarter financial results.

Revenue from operations for the quarter ended June 30, 2024, reached ₹1,120.15 crore, marking an 11% increase from ₹1,001.79 crore in the same quarter last year. Total income rose by 12% to ₹1,171.56 crore, driven by a 31% increase in other income sources, compared to ₹1,040.99 crore during the same period.

Revenue growth was driven by the catering, Rail Neer and internet ticketing segment. In contrast with internet ticketing, low-margin segments such as catering contributed significantly to overall profitability. The catering segment rose 17% to ₹558.89 crore in the first quarter from ₹477.07 crore in June last year, while Rail Neer grew 16% to ₹111.47 crore from ₹95.93 crore, during the same period. Internet ticketing increased 13% to ₹329.07 crore from ₹290.07 crore. However, the tourism segment, despite many state tours and tirthas, declined by 12% to ₹124.88 crore from ₹142.48 crore.

The uptick in ticketing can also be attributed to the company’s recent initiative of One India - One Ticket. Under this, IRCTC collaborated with DMRC and CRIS permitting Delhi metro passengers to book Delhi Metro Rail QR Code-based tickets from July. The company extended this collaboration with NCRTC enabling NCRTC ticketing service integration on the IRCTC Ticketing platform. The Delhi NCR passengers will now be able to book tickets for up to 8 travellers in a single booking for the Rapid Rail Transit System from the IRCTC platform. The Regional Rapid Transit System (RRTS) also known as Namo Bharat trains are semi-high-speed trains currently partially operational on the Delhi-Ghaziabad-Meerut Corridor. The current corridor is the first of the four rapid rail corridors planned under Phase 1 of the RapidX project managed by the National Capital Region Transport Corporation (NCRTC).

On the expense side, catering costs remained the largest expenditure, rising 18% year-over-year. However, tourism-related expenses decreased from ₹110.15 crore in June 2023 to ₹97.62 crore in June, this year.

The diluted earnings per equity share stood at ₹3.85 up from ₹2.9 in the year-ago quarter.

In July earlier this year, the government upgraded IRCTC to a 'Schedule A' central public sector enterprise.

The IRCTC is the sole entity authorised by the Government of India to provide online railway tickets, catering services for railways, and packaged drinking water at stations and on trains across India. Over time, IRCTC has expanded its offerings to include luxury train tours, hotel bookings, and holiday packages, positioning itself as a key player in the tourism and hospitality sector. As of Q2FY24, the Indian government holds a 62.4% stake in the company, with foreign portfolio investors and domestic institutional investors owning 7.1% and 10.5%, respectively. The remaining 20% is held by individual shareholders.

IRCTC shares closed today at ₹918, down 0.69% from the previous day, after reaching an intraday high of ₹931.45. The company’s market capitalisation stands at ₹73,440 crore.