Friday, June 24, 2022

IRCTC shares recover as the Q2FY’22 profit surges to Rs 158.5 crore

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New Delhi: IRCTC shares saw a green swing on Monday after the railways' PSU announced its second-quarter financial result. IRCTC reported a massive net profit for the quarter ended September 2021 from continuing operations of Rs 158.5 crore, up 386 percent. PAT in the same period last year was Rs 32.6 crore. Profit in the first quarter of this financial year stood at Rs 82.5 crore. IRCTC's revenue from operations for the second quarter surged 357% to Rs 405 crore as compared to Rs 88.5 crore year-on-year (YoY). The PSU's tax expense rose significantly to Rs 213 crore from Rs 46.6 crore on a like-to-like basis.

The result had a positive impact on IRCTC share prices. IRCTC shares closed at Rs 856 apiece (NSE) which is 1.22 percent up from Friday's close at Rs 845.

IRCTC's revenue from the internet ticketing segment, which now is known to everyone as convenience charges, saw a significant jump to Rs 265 crore against Rs 58.2 crore in the corresponding period last year. The easing of COVID restrictions and rapid vaccination across the country resulted in improved mobility across states. The same was clearly visible in the catering segment as the revenue in the said segment increased to Rs 71.4 crore from Rs 17 crore during the quarter under review. Other segments also registered massive growth in the July-September period as compared to last year. The catering segment was the second-largest contributor to the company’s revenues.

“The company does not foresee any adverse impact on the supply chains as and when the business is resumed fully wherever the operations were curtailed or have remain suspended on account of present pandemic," IRCTC informed in an exchange filing.

The PSU reported an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs 227.7 crore and EBITDA margins of 54% in this quarter. The net margins for IRCTC stood at 37.7 percent.

IRCTC has the status of a monopoly company as it is the only company authorised to manage catering services on trains and major static units at railway stations. IRCTC shares turned ex-split on Thursday after the board had approved a 1:5 stock split on August 12, to help enhance liquidity in the capital market and expand IRCTC's shareholder base.

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