IRCTC Soars on Strong Q3 Results, Announces Interim Dividend

Introduction:

Indian Railway Catering and Tourism Corporation (IRCTC) has suggested a stable performance for Q3 FY25, with consolidated net profit growing 13.7% 12 months-on-12 months (YoY) to ₹341.09 crore. The surge in profitability comes on the returned of a 9.79% boom in revenue from operations, which reached ₹1,224.66 crore for the quarter, up from ₹1,116.21 crore in Q3 FY24. This boom has helped IRCTC’s inventory climb with the aid of 1.53%, final at ₹762.75.

Key highlights from the earnings report:

Profitability Growth: Profit before tax (PBT) stood at ₹456.55 crore, reflecting a 12.35% increase compared to ₹406.36 crore in Q3 FY24, showcasing continued operational efficiency.

Revenue Breakdown: IRCTC’s diversified business model showed robust growth across several segments:

Catering: Revenue from catering services grew 9.26% YoY to ₹554.81 crore, driven by increased demand and operational scale.

Rail: The rail segment posted a 15.03% rise, contributing ₹96.36 crore to the total.

Tourism: The tourism segment surged by 16.13% YoY to ₹223.73 crore, reflecting growing interest in domestic travel and tours.

IRCTC Q3 FY25 Results: Strong Profit Growth and Interim Dividend Announcement:

Internet Ticketing: Online ticketing revenue rose 5.49% YoY to ₹353.72 crore, benefiting from higher volumes of bookings.

Cost Structure: Total expenses increased by 11.41% YoY to ₹824.65 crore, with a significant rise in catering expenses (up 17.88% YoY) and tourism expenses (up 9.67% YoY).

However, cost of materials consumed was lower by 10.64%, providing some margin relief.

Interim Dividend: The company declared an interim dividend of ₹3 per share, reinforcing its commitment to providing value to shareholders. The record date for the dividend is set for February 20, 2025.

IRCTC Reports 13.7% Profit Growth in Q3 FY25, Declares ₹3 Interim Dividend:

Key Takeaways:

IRCTC’s strong financial results underscore its continued recovery and expansion across its core business segments, particularly catering, tourism, and internet ticketing. The company’s solid earnings growth and the dividend announcement reflect a healthy balance of reinvestment in operations and shareholder returns.

As the travel and tourism sectors continue to rebound post-pandemic, IRCTC stands poised for sustained growth in the coming quarters.

Conclusion:

The market reaction to the earnings release is positive, with shares reflecting the market’s confidence in the company’s strong fundamentals and future prospects.

FAQ:

1. What were IRCTC’s Q3 FY25 financial results?
IRCTC reported a consolidated net profit of ₹341.09 crore for Q3 FY25, marking a 13.7% year-on-year (YoY) growth. The company’s revenue from operations increased by 9.79% to ₹1,224.66 crore during the same period.

2. What was IRCTC’s Profit Before Tax (PBT) in Q3 FY25?
IRCTC’s Profit Before Tax (PBT) for Q3 FY25 stood at ₹456.55 crore, reflecting a 12.35% increase from ₹406.36 crore in Q3 FY24.

3. How did IRCTC’s expenses perform in Q3 FY25?
The company’s total expenses increased by 11.41% YoY to ₹824.65 crore. Catering services expenses rose by 17.88%, tourism expenses grew by 9.67%, while manufacturing and direct expenses increased by 7.9%.

4. What was the revenue breakdown by segment?
In Q3 FY25, IRCTC’s revenue from different business segments was as follows:

Catering: ₹554.81 crore (up 9.26% YoY)
Rail: ₹96.36 crore (up 15.03% YoY)
Tourism: ₹223.73 crore (up 16.13% YoY)
Internet Ticketing: ₹353.72 crore (up 5.49% YoY)

5. Has IRCTC declared any dividends for FY25?
Yes, IRCTC’s board declared an interim dividend of ₹3 per share for the financial year 2024-25. The record date for the dividend is set for February 20, 2025.

6. How did IRCTC’s stock perform following the Q3 results?
Following the strong earnings report, IRCTC’s stock rose by 1.53%, closing at ₹762.75 per share.

7. What factors contributed to IRCTC’s growth in Q3 FY25?
IRCTC’s growth can be attributed to increased demand across its segments—particularly catering, tourism, and rail services. The company has seen a rise in travel bookings and catering services, supported by improved operations and strategic initiatives.

8. How is IRCTC positioned for future growth?
IRCTC’s strong financial results and diversified business model position it well for future growth. The growing demand for tourism and rail services, alongside the rebound in travel post-pandemic, provides a favorable outlook for the company in the upcoming quarters.

9. What does IRCTC do?
IRCTC, or Indian Railway Catering and Tourism Corporation, is a public sector undertaking that provides a wide range of services including ticketing, catering, and tourism services for Indian Railways.

10. When is the record date for IRCTC’s dividend?
The record date for the interim dividend of ₹3 per share is set for February 20, 2025.

Disclaimer

The information provided on www.Barawakar.com is for informational purposes only and does not constitute financial advice. Stock trading is inherently risky, and users agree to assume full responsibility for their trading decisions, including any loss of capital. While we strive for accuracy, we do not guarantee the completeness or reliability of the information presented.

Users should conduct their own research and consult with a qualified financial advisor before making any investment decisions. www.Barawakar.com disclaims all warranties and is not liable for any damages arising from the use of this website. By using this site, you agree to these terms.

For any question, please contact us