IRCTC shares rise ahead of Q2 earnings; here’s what to expect

Shares of Indian Railway Catering and Tourism Corporation Ltd (IRCTC) rose over 2 per cent in early ahead of the railways ticketing arm’s Q2 earnings set to be announced today. IRCTC shares opened higher at Rs 751.10 today. Later, IRCTC stock hit an intraday high of Rs 763.85 rising 2.13 per cent against the previous close of Rs 747.95 on BSE. Market cap of IRCTC rose to Rs 60,688 crore on BSE. At 10:50 am, the stock was trading 1.38 per cent higher at Rs 758.30 on BSE.

IRCTC shares hit a 52-week high of Rs 929.65 on November 16, 2021 and a 52-week low of Rs 557 on July 6, 2022.

IRCTC shares are trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. IRCTC share price has lost 8.83 per cent since the beginning of this year and fallen 12.28 per cent in one year. Total 3.75 lakh shares changed hands amounting to a turnover of Rs 28.15 crore on BSE.

The government firm is expected to report a 55.9 per cent YoY rise in net profit at Rs 247.20 crore for September quarter compared with Rs 158.60 crore in the year-ago quarter, according to Prabhudas Lilladher.

Revenue in Q2 is seen rising 111.60 per cent YoY to Rs 856.90 crore in Q2 from Rs 404.90 crore in the corresponding quarter last year. Margins are seen falling to 37.5 per cent against 52.2 per cent in the year-ago quarter due to falling contribution of high margin ticketing business

"We expect 112 per cent YoY revenue growth due to base effect and continued traction in non-convenience income & catering business. Online booking is expected to be at 10.90 crore tickets for the quarter," said Prabhudas Lilladher. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to climb 51.8 percent Y-o-Y to Rs 321.1 crore, it added.

In Q1 of the current fiscal, IRCTC reported a 196 per cent rise in net profit. The firm that provides ticketing, catering, and tourism services for the Indian Railways reported a profit of Rs 246 crore, for the quarter ended June 30. It reported net profit of Rs 82.5 crore in the year-ago period (Q1 FY22). Revenue from operations rose 251 per cent to Rs 853 crore in Q1 this fiscal from Rs 243 crore in Q1 FY22. Total income rose to Rs 877 crore in Q1 FY23 as compared to Rs 258 crore in Q1 FY22. 

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