IRCTC Q3 Preview: Profit likely to rise 19%; revenue may increase 18%; firm may benefit from govt's railway expansion plan

IRCTC Q3 Preview: Zee Business research estimates IRCTC to report a 19 per cent rise in consolidated profit after tax (PAT) and 17.6 per cent jump in revenue from operations as Indian Railway Catering and Tourism Corporation reports its December quarter results on Tuesday (February 13, 2024). 

The research team estimates the company to report Rs 305 crore profit in the quarter under review, which will be a 19 per cent jump from Rs 255.50 crore on a year-on-year (YoY) basis.

Street is expecting IRCTC's revenue from operations to go up by 17.60 per cent to Rs 1080 crore in the December quarter from Rs 918 crore in the same quarter last fiscal year. 

Analysts expect the company's EBITDA for the December quarter to go up to Rs 380 crore, a 17  per cent increase from the Rs 325.80 crore the company reported in the year-ago period.

The research team estimates IRCTC's margin to slip to 35.2 per cent in the quarter under review from 35.5 per cent YoY.
 

What more investors can expect from IRCTC's Q3 results 

Analysts expect that IRCTC's income growth in the December quarter is possible due to good performance in its lower margin business.

The company is expected to deliver a good performance in its catering and tourism business.

The analysts expect that the government's focus on railway expansion will provide long-term benefits to the company.

The research team also says that IRCTC's December quarter results will get support due to the addition of new ODI Bharat train and Tejas train.

It suggests investors keep an eye on the company's catering and taking income as well as on its Rail Neer expansion plan.