Indian Railway Catering and Tourism Corporation (IRCTC) remained in focus on Friday after the monopoly reported a growth in its quarterly revenue and net profits numbers.
In Q3FY23, the company reported a total revenue of Rs 918.06 Crores, an increase of 70 percent YoY from Rs 540.21 Crores and 14 percent QoQ from Rs 805.8 Crores.
Their net profit in the period was at Rs 255.53 Crore compared to Rs 208.81 Crore in the same period the year ago, registering a growth of 22 percent. In the previous quarter, their profits were at Rs 226.03 Crore.
Along with its results, the board of the company has also declared the payment of an interim dividend. The company will pay a dividend of 175% of its face value of Rs 2 amounting to Rs 3.5 per share. The record date for the purpose has been set as February 9th, 2023.
Indian Railway Catering and Tourism Corporation is a Mini Ratna central public sector enterprise and is a wholly owned subsidiary of Indian Railways, Government of India. It provides ticketing, catering, and tourism services for the Indian Railways.
The company has a market capitalization of Rs 51,632 Crore and a dividend yield of 0.54%. Compared to the sector PE of 79.76 the monopoly company has a TTM PE of 57.71 and thus can be considered to be an undervalued stock.
The President of India, a promoter entity, holds a 62.40 percent stake in the company, and the largest insurer in the country, Life Insurance Corporation of India holds a 7.42 percent stake.
Written by Anoushka Roy
