IRCTC Q2 Results Sneak Peek: The state-run railway ticketing and catering services provider, Indian Railway Catering and Tourism Corporation (IRCTC) is scheduled to release its financial results for the second quarter of FY25 today.
The interim dividend for FY25 will also be discussed by the IRCTC board today. The business has set Thursday, November 14, 2024, as the Record Date for figuring out whether stockholders are eligible to receive the aforementioned interim dividend, should the Board of Directors declare it.
For the quarter that ends in September 2024, analysts anticipate that IRCTC will report a small increase in both sales and profit.
Experts forecast that IRCTC’s Q2 operating revenue will increase by more than 4% year over year (YoY) to approximately ₹1,170 crore and that the company’s net profit will increase by almost 7% YoY.
“In addition to financial results, the company is expected to declare an interim dividend for FY 2024-25, providing further incentive for investors. This announcement is anticipated to be a focal point of the 142nd meeting of the Board of Directors, scheduled for the same day,” said Anshul Jain, Head of Research at Lakshmi Shree Investments and Securities.
Analysts predict that IRCTC will record a 2% YoY increase in Q2 EBITDA at the operating level, while the EBITDA margin is predicted to experience compression.
Key things to watch out for in IRCTC Q2 Results:
Market players will be monitoring the effects of the company’s recent initiatives, such as the lowering of the Advance Reservation Period (ARP) and the launch of a ticket booking feature for Regional Rapid Transit Systems (RRTS) Trains on the IRCTC Platform, in addition to the IRCTC Q2 results.
IRCTC announced last month that the Advance Reservation Period (ARP) would be shortened from 120 days to 60 days. It did clarify, though, that the number of trains operating each day has not changed, therefore the capacity of the reserved tickets will remain the same.
“As such, there will be no impact on Internet Ticketing revenue of IRCTC through convenience fees charged on e-tickets booked through its platform,” IRCTC said.
“IRCTC has introduced several initiatives aimed at enhancing its service offerings and boosting revenue. Notably, the Advance Reservation Period (ARP) for ticket bookings has been reduced from 120 days to 60 days. This change is designed to alleviate long waiting lists, particularly during busy festive seasons, without affecting the number of trains or the company’s internet ticketing revenue,” Anshul Jain said.
Furthermore, a major step toward enhancing the travel experience for passengers has been taken with IRCTC’s collaboration with the National Capital Region Transport Corporation (NCRTC) under the “One India – One Ticket” project. According to him, the goal of this partnership is to improve convenience for passengers nationwide by streamlining the ticketing procedures for Indian Railways and Regional Rapid Transit Systems (RRTS).
IRCTC Share Price
This year, IRCTC’s stock price has stayed negative, dropping more than 10% in a single month and more than 15% in three. The stock price of IRCTC has dropped more than 19% in the last six months and more than 6% so far this year.
IRCTC shares were down 1.64% at ₹818.30 a share on the BSE at 9:20 AM.
