IRCTC Q2 Results Preview: Net profit likely to grow 24% but margin pressure may persist

IRCTC Q2 earnings preview | State-run Indian Railway Catering and Tourism Corporation (IRCTC), the only firm authorised by the Indian Railways to manage food services onboard trains and offer online railway ticket booking services, is scheduled to report its quarterly financial results on Tuesday, November 7. IRCTC—a Miniratna central public sector enterprise under the Ministry of Railways—is widely expected to register strong overall growth in revenue driven by its low-margin segments. 

According to Zee Business research, IRCTC is likely to report a consolidated net profit of Rs 281 crore for the July-September (Q2 FY24) period, translating into an increase of 24.3 per cent compared with the corresponding quarter a year ago. The analysts estimate the railway PSU's revenue to grow 27.7 per cent on a year-on-year basis to Rs 1,029 crore. 

IRCTC is estimated to report Rs 357 crore in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter ended September 30, 2023, an increase of 17.2 per cent compared with the year-ago period, according to the research. 

Zee Business analysts estimate the state-run company's margin for the quarter to come in at 34.7 per cent for the fiscal second quarter, shrinking from 37.8 per cent a year ago. 

How IRCTC fared in the June quarter (Q1 FY24)

For the fiscal first quarter, Indian Railway Catering and Tourism Corporation (IRCTC) staged a weaker-than-expected set of numbers. 

Its net profit declined 5.4 per cent on a year-on-year basis to Rs 232.2 crore, including an exceptional loss of Rs 52 crore, while revenue grew 17.5 per cent to Rs 1,002 crore, according to a regulatory filing. 

IRCTC's margin contracted by 340 basis points to 34.3 per cent for the June quarter. 

Zee Business analysts had pegged the company's net profit at Rs 275.4 crore, revenue at Rs 1,025 crore and margin at 34.6 per cent for the first quarter of the financial year. 

IRCTC shares: Past performance 

IRCTC shares finished the September quarter 7.2 per cent stronger, sharply outperforming a 2.4 per cent rise in the headline Nifty50 index. 

As of November 6, IRCTC shares have grown 4.5 per cent so far in 2023 while the Nifty has risen 6.7 per cent. 

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.