News

Published: August 13, 2024
Updated: August 13, 2024

IRCTC Q1 Results Preview: Net Profit Expected to Rise 6.7% YoY

Earnings Expectations

Indian Railway Catering and Tourism Corporation Ltd (IRCTC) is set to announce its Q1FY25 results, with analysts expecting a 6.7% year-on-year (YoY) increase in net profit to Rs 303.30 crore. Sales are expected to rise 11.2% YoY to Rs 1,114.20 crore, driven by growth in ticketing, catering, and tourism revenue.

Segment-Wise Performance

Prabhudas Lilladher expects IRCTC's online ticket booking figure to reach 11.6 crore, resulting in ticketing revenue of Rs 320 crore for the quarter. Catering revenue is expected to increase 7% YoY to Rs 510 crore, while tourism business is seen growing at 11% YoY.

EBITDA and Margin Expectations

EBITDA for the quarter is seen coming in at Rs 393.40 crore, with a margin of 35.30%, up 107 basis points YoY. The brokerage maintains a 'Reduce' rating with a target price of Rs 811, assigning a multiple of 47.5 times over FY26E EPS.

Travel Environment and Hospitality Trends

The domestic brokerage notes that the overall travel environment was sluggish during the June quarter, with severe heat waves and general elections impacting recreational spends. Hospitality occupancy levels declined in May 2024, indicating a slowdown in demand.

IRCTC's Q1 results are expected to show a modest increase in net profit, driven by growth in ticketing, catering, and tourism revenue. However, the sluggish travel environment and hospitality trends may impact the company's performance. Investors are advised to consult with a qualified financial advisor before making any investment decisions.