IRCTC Q2 Results Preview: Net profit likely to grow 24% but margin pressure may persist

IRCTC Q2 earnings preview | State-run Indian Railway Catering and Tourism Company (IRCTC), the one agency authorised by the Indian Railways to handle meals companies onboard trains and provide on-line railway ticket reserving companies, is scheduled to report its quarterly monetary outcomes on Tuesday, November 7. IRCTC—a Miniratna central public sector enterprise below the Ministry of Railways—is broadly anticipated to register robust general development in income pushed by its low-margin segments. 

In line with Zee Enterprise analysis, IRCTC is more likely to report a consolidated web revenue of Rs 281 crore for the July-September (Q2 FY24) interval, translating into a rise of 24.3 per cent in contrast with the corresponding quarter a yr in the past. The analysts estimate the railway PSU’s income to develop 27.7 per cent on a year-on-year foundation to Rs 1,029 crore. 

IRCTC is estimated to report Rs 357 crore in earnings earlier than curiosity, taxes, depreciation and amortisation (EBITDA) for the quarter ended September 30, 2023, a rise of 17.2 per cent in contrast with the year-ago interval, based on the analysis. 

Zee Enterprise analysts estimate the state-run firm’s margin for the quarter to come back in at 34.7 per cent for the fiscal second quarter, shrinking from 37.8 per cent a yr in the past. 

How IRCTC fared within the June quarter (Q1 FY24)

For the fiscal first quarter, Indian Railway Catering and Tourism Company (IRCTC) staged a weaker-than-expected set of numbers. 

Its web revenue declined 5.4 per cent on a year-on-year foundation to Rs 232.2 crore, together with an distinctive lack of Rs 52 crore, whereas income grew 17.5 per cent to Rs 1,002 crore, based on a regulatory submitting. 

IRCTC’s margin contracted by 340 foundation factors to 34.3 per cent for the June quarter. 

Zee Enterprise analysts had pegged the corporate’s web revenue at Rs 275.4 crore, income at Rs 1,025 crore and margin at 34.6 per cent for the primary quarter of the monetary yr. 

IRCTC shares: Previous efficiency 

IRCTC shares completed the September quarter 7.2 per cent stronger, sharply outperforming a 2.4 per cent rise within the headline Nifty50 index. 

As of November 6, IRCTC shares have grown 4.5 per cent to this point in 2023 whereas the Nifty has risen 6.7 per cent. 

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