IRCTC Reports 30% Profit Jump, Plans Subsidiary for I-Pay Business

8 Nov 2023 , 02:17 PM

IRCTC’s shares showed a slight decline on November 8, despite strong financial results for the quarter ending September 2023. The company reported a 30% year-on-year increase in net profit, reaching Rs 294.67 crore, primarily attributed to higher ticketing and catering sales.

The railway firm’s revenue also rose by 23% YoY, totaling Rs 995.31 crore. IRCTC holds exclusive authorization from the Indian government for providing online railway tickets, catering services, and packaged drinking water at railway stations and trains in India.

The company has expanded its services to encompass a wide array of tourism and hospitality offerings, including luxury train tours, hotel bookings, and holiday packages. Sales from state teertha surged by 119% YoY to Rs 64.84 crore in the reported quarter.

The catering segment, the second-largest revenue contributor, witnessed a 29% increase in sales, reaching Rs 431.5 crore. Sales for the tourism segment jumped by 39% to Rs 96.55 crore.

In addition to reporting Q2 earnings, IRCTC’s board approved the establishment of a wholly-owned subsidiary (WOS) for the IRCTC I-Pay business, pending approval from relevant authorities.

The company also announced an interim dividend of Rs 2.50 per equity share with a face value of Rs 2 each for the financial year 2023-24, equivalent to 125% of the paid-up share capital, amounting to Rs 160 crore.

The record date for the dividend has been set for November 17. In a recent development, Devyani International partnered with IRCTC to bid for railway food court contracts as part of the government’s initiative to modernize railway stations. IRCTC is the largest provider of catering services to the Indian Railways.

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