IRCTC Shares Surge as PSU Railway Company Announces Dividend

29 Aug 2023 , 12:40 PM

The shares of Indian Railway Catering and Tourism Corporation (IRCTC) experienced a notable rise in the Monday trading session on August 28,  reaching a 3.02% increase.

The state-owned railway company, IRCTC, recently revealed its plans to issue an additional dividend of Rs 2 per share for the fiscal year 2023.

With the latest dividend installment, the cumulative dividend payout for the fiscal year 2023 stands at Rs 5.5 per equity share with a face value of Rs 2. The announcement regarding this dividend distribution was made during the company’s 24th Annual General Meeting on August 26.

Seema Kumar, Chairman and Managing Director of IRCTC, shared insights during the AGM, expressing optimism about the gradual recovery of the global tourism sector post-pandemic. She noted that India’s tourism industry is witnessing signs of revival. She further highlighted the growth in foreign tourist arrivals in India during FY23 due to the resumption of international flights and the relaxation of COVID-19 regulations.

IRCTC’s cutting-edge e-ticketing system has made impressive strides, capturing a significant 80.99 % share of the reserved tickets booked on Indian Railways in FY23, as stated in an exchange filing on August 26.

Despite the challenges posed by the pandemic, IRCTC’s shares have demonstrated resilience, offering a 5 % return since the beginning of the year. Over the past year, however, there has been a marginal decline of 2 %.

Regarding financial performance, IRCTC reported a 5 % YoY decline in net profit, reaching Rs 232 crore for the April-to-June quarter.

Nevertheless, the company’s revenue exhibited a 19 % YoY increase, reaching Rs 1002 crore during the same period.

The upward trajectory of IRCTC’s shares, coupled with its sustained efforts to innovate and adapt to changing circumstances, underscores its resilience and potential for growth in the dynamic landscape of the rail and tourism sectors.

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