IRCTC posts moderate profit growth in Q2 FY25, declares Rs 4 interim dividend

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) are expected to attract market attention following the announcement of its Q2 FY25 results. The company reported a four per cent increase in consolidated net profit, reaching Rs 308 crore for the quarter ending September 2024, compared to Rs 295 crore in the same period last year. Revenue from operations also grew by seven per cent year-on-year (YoY), standing at Rs 1,064 crore, up from Rs 992 crore.

The IRCTC board has approved an interim dividend of Rs 4 per share (face value Rs 2), with November 14 set as the record date to determine eligible shareholders.

Despite a rise in revenue and profits, IRCTC’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw only a marginal increase, growing to Rs 373 crore from Rs 367 crore in the same quarter last year. EBITDA margins slightly declined to 35.05 per cent.

On a quarter-on-quarter (QoQ) basis, net profit remained flat at Rs 308 crore, while revenue dipped by five per cent from the previous June quarter.

Breaking down the quarterly revenue by segment, IRCTC’s catering division saw a robust 12 per cent increase, generating Rs 482 crore against Rs 432 crore a year ago. The internet ticketing segment posted strong gains, reporting Rs 371 crore, up from Rs 327 crore last year. The tourism division also showed growth, with revenue climbing to Rs 90 crore from Rs 78 crore in Q2 FY24.

IRCTC’s Rail Connect app, a popular choice for railway ticketing, has played a significant role in maintaining ticketing revenues as it continues to be a primary booking platform. Looking ahead, the company is working on integrating its services with the upcoming Indian Railways ‘super app, which is anticipated to simplify ticketing and other railway services.

Ahead of the results, IRCTC shares fell two per cent on Monday, closing at Rs 815 on NSE.