IRCTC Q2 Results: Profit Rises On Higher Catering, Tourism Segment Sales
Profit rose aided by higher contributions from the low-margin catering and tourism segments.
Indian Railway Catering and Tourism Corp. Ltd.’s second-quarter profit rose, aided by greater rail travel and higher contribution from catering and tourism segments.
The consolidated net profit of the company rose 43% to Rs 226 crore in the quarter ended September, as compared to Rs 158.6 crore last year, according to its exchange filing.
IRCTC Q2 FY23 Highlights (Consolidated YoY):
Revenue rose 99% to Rs 805.8 crore, against Rs 404.9 crore over the same period last year.
Ebitda rose 44% to Rs 304.9 crore versus Rs 211.5 crore last year.
Ebitda margin stood at 37.8%, compared with 52.2% last year.
The sharp drop in margin is because profitability came from catering and tourism, which are low-margin segments.
Catering and tourism segment’s contribution to topline increased to 41.5% and 8.6%, respectively, in the quarter from 17.6% and 6.7% in the comparable period last year.
The contribution of high-margin internet ticketing segment fell to 37% from over 65% last year.
The cooked meal service, halted during the pandemic to curb the spread of the virus, was resumed earlier this year. Hence, there was an increase in the catering sales, the company said.
Shares of the company ended 1.5% higher before the results were announced, against a 0.1% fall in the Nifty 50.