IRCTC, the online ticketing and catering subsidiary of Indian Railways, has released its fourth quarter (January–March) results for FY25. IRCTC shares rose on Thursday after the report. The stock rose as much as 3.04% to hit an intraday high of ₹ 799 during trading. As of 11:10 am, the stock was trading at ₹ 776.50, up marginally by 0.02%.
Q4 Financial Overview of FY25
- Consolidated Net Profit:
IRCTC reported a consolidated net profit of ₹358 crore in Q4 FY25, up 26% from ₹284 crore in the same quarter last year. - Exceptional Gain:
This huge profit surge also includes an unusual gain of ₹46 crores, termed as “aided gain”. - Operating Revenue:
Operating revenue stood at ₹1,268 crore in the quarter as against ₹1,152 crore in Q4 FY24. This means a robust 10% growth in operating revenue. - EBITDA and Margin:
IRCTC’s EBITDA (profit before interest, tax, depreciation and intangible assets) during the quarter stood at ₹385 crore as against ₹363 crore in the same quarter last year. This led to a 6% increase in EBITDA.
However, EBITDA margin declined from 31.5% last year to 20.4% this time. The 110 basis point decline in margin is a result of exceptional gains and certain other expenses included in the profit.
Segmental Performance Deep Dive
IRCTC’s various businesses performed at different levels during the quarter. Mainly four major segments can be focused on:
- Catering Business:
- IRCTC gets maximum revenue from this section.
- Revenue from catering stood at ₹529 crore in Q4 FY25, compared to ₹531 crore in Q4 FY24.
- This led to a marginal decline of 0.3% in this segment.
- Packaged Drinking Water (Rail Neer):
- IRCTC’s packaged water “Rail Neer” is also an important income source.
- Revenue from the segment stood at ₹96 crore in Q4 FY25.
- Internet Ticketing:
- IRCTC earned a revenue of ₹372 crore from online ticket sales this quarter.
- Tourism Business:
- This segment generated a revenue of ₹274 crore for IRCTC in Q4 FY25.
- This segment is performing better than last year and is contributing significantly to the overall profit.
Profit Before Tax by Segment
The company also shared the profit before tax (PBT) of its key segments in the quarter:
- Catering:
- PBT stood at ₹64.60 crore in Q4 FY25, up from ₹46.50 crore in Q4 FY24.
- This led to a growth of 39% in this segment.
- Rail Neer (Packaged Water):
- The PBT of this segment stood at ₹11.70 crore, up 10% from ₹10.64 crore last year.
- Internet Ticketing:
- Online ticketing delivered a PBT of ₹307 crore, up 12% over last year (was ₹274 crore in Q4 FY24).
- Tourism:
- The PBT of the tourism segment reached ₹50 crore this time, a whopping 163% growth as compared to just ₹19 crore in Q4 FY24.
- The strong growth of this segment has played a big role in the company’s overall profit.
Dividend Recommendation
The board of IRCTC has proposed a final dividend of ₹2 per share for FY25. The proposal is yet to be approved by shareholders. Strong profit growth and strong revenue figures satisfied investors, leading to the stock closing in the green today.
Overall Conclusion
- Sharp jump in net profit:
- IRCTC reported a net profit of ₹358 crore in Q4 FY25, up 26%. This also included an exceptional profit of ₹46 crore.
- 10% increase in operating revenue:
- Total revenue for the quarter stood at ₹1,268 crore, better than last year’s ₹1,152 crore.
- Difference in segment wise performance:
- Revenue from catering declined marginally, while packaged water (Rail Neer) and internet ticketing delivered steady gains.
- The tourism business showed exceptional profit growth of 163%, strengthening the overall bottom line.
- Decrease in EBITDA Margin:
- Amid a push to reduce losses and maintain profitability, EBITDA margin fell to 20.4%, down from 31.5% a year ago.
- Strength in share price:
- After the results, IRCTC shares rose 3.04% to ₹ 799. By 11:10 am, it was trading at ₹ 776.50.
- Dividend Proposal:
- The dividend of ₹2 per share reflects IRCTC’s strong cash position and commitment to its shareholders.
IRCTC’s quarterly report has made it clear that the strong tourism segment and exceptional profits have boosted the company’s overall results. In the future, the growth of tourism business along with the stable performance of catering and internet ticketing can help IRCTC maintain high profit levels.
Disclaimer: This news is for educational purposes only. The securities/investments mentioned here are not a recommendation.
