IRCTC Q2 Results Preview: Expect 4% YoY revenue growth; dividend announcement eyed

IRCTC Q2 Results Preview: Indian Railway Catering and Tourism Corporation (IRCTC), the state-run railway ticketing and catering services provider, is set to announce its financial results for the second quarter of FY25 today.

IRCTC board will also consider an interim dividend for FY25 today. The company has fixed Thursday, November 14, 2024, as the Record Date for determining eligibility of shareholders for payment of the said Interim Dividend, if declared by the Board of Directors.

Analysts expect IRCTC to post modest growth in revenue and profit for the quarter ended September 2024.

Experts predict IRCTC Q2 revenue from operations to grow over 4% year-on-year (YoY) to around ₹1,170 crore, while the company’s net profit is estimated to rise nearly 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 Lakshmishree Investments and Securities.

At the operating level, analysts expect IRCTC to report a 2% YoY rise in Q2 EBITDA, while EBITDA margin is estimated to see compression.

Key things to watch out for in IRCTC Q2 Results:

Along with IRCTC Q2 results, market participants will watch out for the impact of new initiatives by the company, including the reduction of the Advance Reservation Period (ARP) and the introduction of a ticket booking facility for Regional Rapid Transit Systems (RRTS) Trains on the IRCTC Platform.

Last month, IRCTC informed that the Advance Reservation Period (ARP) will be reduced to 60 days from 120 days earlier. However, it clarified that there was no change in the number of trains running daily, and hence, the reserved ticket capacity will be the same as it was.

“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.

Moreover, IRCTC’s partnership with the National Capital Region Transport Corporation (NCRTC) under the ‘One India – One Ticket’ initiative marks a significant step in improving the travel experience for passengers. This collaboration aims to streamline ticket booking processes for Regional Rapid Transit Systems (RRTS) and Indian Railways, enhancing convenience for travelers across the country, he added.

IRCTC Share Price

IRCTC share price has remained in the red this year, with the railway stock falling over 10% in one month and more 15% in three months. IRCTC stock price has declined more than 19% in six months and over 6% year-to-date (YTD).

At 9:20 AM, IRCTC shares were trading 1.64% lower at ₹818.30 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.