IRCTC shares dividend: Shares of railway company Indian Railway Catering and Tourism Corporation Ltd (IRCTC) shall trade ex-dividend today. The state-run multibagger had announced a second interim dividend of for their eligible shareholders, along with the quarterly results for the period ended on December 31, 2024.
The company board of IRCRC declared a second interim dividend at the rate Rs 3 per equity share of face value of Rs 2 each @ 150 per cent for the financial year 2024-25, said IRCTC in the exchange filing. "It also fixed Thursday, February 20, 2025 as the record date for the purpose of payment of second interim dividend of FY 2024-25," its filing added.
IRCTC reported a 14 per cent YoY rise in consolidated net profit at Rs 341 crore for the third quarter of the financial year 2024-25. Its consolidated revenue from operations for the quarter was up 10 per cent YoY Rs 1,225 crore. Ebitda for the quarter inched up 5.7 per cent YoY to Rs 417 crore in the quarter, while the margins contracted nearly 130 bps to 34 per cent.
Shares of Indian Railway Catering and Tourism Corporation settled at Rs 728 on Wednesday, rising more than a per cent for the day, commanding a total market capitalization of more than Rs 58,000 crore. The stock has soared about 370 per cent in the last five years, despite a 37 per cent correction from its 52-week high at Rs 1,148.30 hit in May 2024.
IRCTC’s operational performance was broadly in-line with estimates. EBIT margin of internet ticketing was at a 7-quarter high of 84.7 per cent presumably led by an improvement in yield, which could be a function of better product mix, said PL Capital. "As e-ticketing penetration has reached 87 per cent, we expect non-convenience pie to drive the revenue growth in the internet ticketing division."
Catering division has embedded optionality arising from rising e-catering volumes, potential in non-railway catering, and launch of Vande Bharat trains, it said. "We expect sales, PAT CAGR 9 per cent and 8 per cent over FY25E-FY27E and retain 'hold' on the stock with a target of Rs 809," PL capital added.
Incorporated in 1999, IRCTC is an entity of Indian Railways, which handles tourism, catering, online ticket booking services and provides packaged drinking water in trains and at railway stations in the country. Listed in October 2019, the stock has zoomed more than 1,000 per cent from its adjusted issue price of Rs 64 per share.
IRCTC reported strong growth mainly led by catering & tourism due to a major uptick in the luxury train segment, said IDBI Capital. Management expects this momentum to continue ahead on the back of increasing partnership with food aggregators & increase in trains like sleeper Vande Bharat and Bharat Gaurav trains, it said.
"Internet ticketing is expected to stabilize at the same levels due to saturation in terms of market share. Management is taking required actions by improving the non-convenience revenue to improve segmental margin which would in-turn reflect in sustaining the margins. Due to sharp correction in the stock, we upgrade our rating to 'buy' from 'hold' with a target price of Rs 870," IDBI Capital added.