IRCTC Q3 Results: Profit Beats Estimates On High Catering Revenue, Ticketing Sales Fall
IRCTC's Q3 revenue rose 70% to Rs 918 crore, against the Rs 850.3 crore forecast.
Indian Railway Catering and Tourism Corp.'s third-quarter earnings rose due to greater contribution from catering, tourism and packaged drinking water segments.
The consolidated net profit of the company rose 22% to Rs 255.5 crore in the quarter ended December, according to its exchange filing. That compares with Rs 237-crore consensus estimate of analysts tracked by Bloomberg.
IRCTC Q3 FY23 Highlights (YoY):
Revenue rose 70% to Rs 918 crore, against the Rs 850.3 crore forecast.
Ebitda grew 17% to Rs 326 crore, compared with estimates of Rs 317 crore.
Ebitda margin stood at 35.5% as against 51.7% last year and estimate of 37.3%.
The sharp drop in margin is because the contribution of catering, which is a low-margin segment in comparison to internet ticketing, rose in the overall sales.
The catering segment’s contribution to the top line increased to 43% in the quarter, from 19% over the same period in the previous fiscal.
The cooked meal service, halted during the Coronavirus pandemic, was resumed last year.
The contribution of the high margin internet ticketing segment fell to 33% from 59% last year. Sales in the segment declined 4% year-on-year to Rs 301 crore.
Shares of the company traded 0.7% higher, as compared to a 0.1% rise in the benchmark Nifty at 2:54 p.m.