Mumbai: The Indian Railway Catering and Tourism Corporation Ltd (IRCTC) witnessed a notable downturn in its share price during morning trading sessions today, reflecting a decline of more than 5 percent on the National Stock Exchange (NSE). The drop ensued in the wake of IRCTC's unveiling of its fourth-quarter financial results subsequent to the closure of the market on Tuesday.
IRCTC disclosed a net profit of Rs 284 Crore for the fourth quarter, showcasing a subtle 2 percent year-on-year growth. However, this figure encompassed a charge of Rs 7.9 crore, impacting the net profit following adjustments. Despite analysts at Prabhudas Lilladher anticipating a net profit of Rs 306.6 crore, the actual outcome stood at Rs 276.3 crore, thereby falling short of expectations.
Moreover, the company's profit margins also failed to meet forecasts, settling at 23.9 percent in contrast to the projected 27.1 percent. Although earnings before interest, taxes, depreciation, and amortization (EBITDA) surged to Rs 362.4 crore, marking an 11.6 percent increase from the preceding year, the margin concurrently experienced a decline, plummeting to 31.4 percent.
While core catering and internet ticketing businesses spearheaded revenue growth, smaller segments like Rail Neer and Tourism underwent a slower-paced expansion. Rail catering revenues soared by 34.1 percent YoY, reaching Rs 530 crore, whereas internet ticketing revenues ascended by 16 percent to Rs 342 crore.
In light of fiscal year 2024, IRCTC's board of directors sanctioned a final dividend of Rs 4 per share, supplementing an interim dividend previously declared. Presently, trading at 66.1 times the FY25 earnings estimate, analysts at Prabhudas Lilladher advocate a HOLD rating on the stock, with a target price of Rs 825 per share.
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