The shares of this monopoly firm in the railway service sector fell 5% and touched an intraday low of Rs 1,028 after the company’s margins dropped to 24% in Q4FY24.
At 1:26 p.m., On Wednesday’s trading session, the shares of Indian Railway Catering and Tourism Corporation Ltd (IRCTC) were trading at Rs 1,045 a piece, down by 3.41 percent on the Bombay Stock Exchange. The company has a market capitalization of Rs 83,692 crores.
The company’s stock prices fluctuated when they announced their financial results for Q4 FY23-24 and FY24. This information was disclosed in recent filings with the stock exchanges.
Taking a look into the company’s financial performance, Indian Railway Catering and Tourism Corporation Ltd reported a consolidated net profit that increased by 2.07 percent from Rs 278.44 crores in Q4FY23 to Rs 284.03 crores in Q4FY24. Additionally, its revenues increased by 19.65 percent from Rs. 965 crore in Q4FY23 to Rs. 1,154 crore in Q4FY24.
On a YoY basis, the company reported consolidated net profits which increased by 10.25 percent from Rs 1,008 crores in FY2023-24 to Rs 1,111 crores in FY2022-23. Also, its revenues increased by 20.57 percent from Rs. 3,541.47 crores in FY2022-23 to Rs. 4,270.17 crores in FY2023-24.
The net profit margins of the company have declined to 24.6 percent in Q4FY23-24 from 28 percent in Q4FY23-24. The shares of this company generated a return of 60.68 percent over the past year and 48.12 percent over the past 6 months.
Recent shareholding pattern as of March 2024 shows that 62.40 percent were for promoters, 16.79 percent for the public, 8.08 percent for foreign institutional investors, and 12.73 percent for domestic institutional investors.
The Board of Directors of the Company has recommended a final dividend of 4.00 per share (face value of 2 per share) for the financial year 2023-24. This is in addition to the interim dividend of 2.50 per share declared in the month of November 2023, thereby making the total dividend for financial year 2023-24 to 6.50 per share on the face value of 2 per share.
Headquartered in New Delhi, Indian Railway Catering and Tourism Corporation Ltd is a leading monopoly company in India that is authorized by the government to provide online railway tickets, catering services, and packaged drinking water.
IRCTC is a monopoly stock as it has exclusive rights to sell rail tickets online. In addition to this, it also has a monopoly in the catering business as no other entity has the authorization to sell food and beverages on the train.
Written by Zahal
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