Last update:
IRCTC 4th quarter results announcement
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) fell nearly 5%. What should I do now?
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) fell about 5% on May 29 after its fourth-quarter revenue and profit missed Street estimates.
Railway PSU stocks fell 5.16 per cent to the day's low of Rs 1,027.15 on NSE in morning trade.
On Tuesday, IRCTC, the only company approved by the Indian Railways to manage on-train food services and provide online rail ticket booking services, posted a consolidated net profit of Rs 284.2 crore for the quarter ended March 31, compared to the previous year. This is a 1.9% increase compared to the previous year. -On an annual basis. IRCTC's quarterly revenue rose to Rs 1,154.8 crore from Rs 965 crore a year ago, according to filings with the regulator.
IRCTC's earnings before interest, taxes, depreciation and amortization (EBIDTA) for the quarter stood at Rs 402.96 billion, up 3.4% year-on-year, with EBIDTA margin at 34.89% compared to 36.8% in the same quarter last year.
The decline in margins is due to the increased contribution of other sectors such as restaurants and tourism, which have lower margins compared to online reservations.
The PSU Board of Directors has recommended a final dividend of Rs 4 per share, equivalent to 200% of the paid-up capital, at face value of Rs 2 in FY24, subject to shareholder approval.
Margins were 31.4% in the fourth quarter of fiscal 2024, down 220 basis points from 33.6% in the year-ago quarter.
The contribution of internet ticketing to overall revenue decreased to 31% from 32.8% in the previous year and 37.1% in FY23. IRCTC's catering business grew 34.1 per cent to Rs 530.8 crore.
The company's stock price is up 47.6% over the past six months, while over the past year the stock is up more than 60%.
IRCTC is an Indian public sector enterprise responsible for providing ticketing, catering and tourism services in collaboration with the state-run Indian Railways.
Prabhudas Lilladher maintained a 'hold' rating on the stock with a target price of Rs 825. The stock is currently trading at 66.1 times the brokerage's FY25E EPS estimates.
“We will provide more details following our call with analysts,” PL said in the note.
disclaimer:Disclaimer: The expert views and investment tips contained in this News18.com report are the opinions of the experts and not the opinions of the website or its management. Users are advised to check with certified professionals before making any investment decision.