- IRCTC has posted strong quarterly results, after which its share price increased by 2.5%.
- Its revenue from various segments has increased except other income.
- It has declared a dividend of ₹2 per share with a record date of 18th February 2022.
Indian Railway Catering and Tourism Corporation (IRCTC)’s share price increased by 2.5% to ₹860 apiece on the Bombay Stock Exchange(BSE) after its consolidated net profit more than doubled to ₹208 crores during Q3FY22 from ₹78 crores during the same period last year.
The company’s revenue from operations surged 141% to ₹540 crores from ₹224 crores during the same quarter last year. It reported a net profit of ₹209 crores, up by 168% as compared to ₹78 crores in the corresponding period last year.
Its revenues from the internet ticketing business increased by 118% from ₹143 crores last year to ₹312 crores in the quarter ending 31st December 2021.
IRCTC has declared an interim dividend of ₹2 per share for FY 2021-22. Its board has fixed Friday, 18th February 2022 as the record date for the payment of dividends.
IRCTC’s revenue from catering services has increased by 117% from ₹48 crores last year to 104 crores this year, Q3FY22. Its tourism segment revenue increased from ₹15 crores to 68 crores in Q3FY22. However, its other income fell to ₹16 crores as compared to ₹21 crores during the corresponding quarter last year.
Ravi Singh, VP and Head of Research at Share India Securities said, “The steep surge in net profit is mainly led by contribution from all the segments and low base of last year. The company has also declared an interim dividend and the recent Budget announcement on additional Vande Bharat trains is going to benefit IRCTC share price in long term. At the current juncture, technical setup is suggesting a target of ₹950 levels in the near term.”
Santosh Meena, Head of Research, Swastika Investmart Ltd said that “IRCTC is consolidating for more than 3 months in the range of 780-920 and I think strong results can help it to gain momentum where it may try to break out this range in the coming days whereas it also has a tailwind of post covid normalization. If it manages to close above 920 level then we can expect a rally towards the 980-1000 zone however 860 is an immediate hurdle. On the downside, if it slips below 780 then we can expect any weakness,”
