IRCTC Q2 Results Review - Business To Normalise In CY23, New Investment To Drive Growth: Dolat Capital
IRCTC believes that finally tourism segment seems out from Covid related impact, is confident to deliver strong performance in H2.
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Dolat Capital Report
Indian Railway Catering and Tourism Corporation Ltd. reported 5.5% QoQ decline in revenues which was led by weakness in passenger traffic due to lean passenger travel season impacting revenues across business segments.
IRCTC's operating profit margin stood at 35.5% (our estimate: 35.2%) down by 52 bps QoQ, was better than estimate on favorable revenue mix towards ticketing segment.
Profitability mix would deteriorate hereon with stable ticketing revenues while other segments (low margin) would flourish.
Repricing on licence fees post assessment of lean period info would drive catering revenues in H2. While improved outbound movement would drive revenue growth in luxury tourism and tours business in H2.
Stability in ticketing volumes post 2S volume normalisation, would mean improved growth performance hereon.
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