IRCTC - Poised to grow faster

 

About Company

IRCTC, has been one of the biggest multibagger stocks in recent years, despite its poor performance in the last 6 months. The company has announced its Q4FY23 numbers. Let us look at the numbers from the March quarters and analyze how the company has performed.

IRCTC Q4FY23 result summary

Revenue: Rs 965 crore, up 39.7% YoY

Profit: Rs 279 crore, 30.4% YoY

Dividend: Rs 2 per share

IRCTC March 2023 result

Let us look at the important quarterly numbers in detail:

The Revenue

For the quarter ending March 2023, the company reported a revenue of Rs 965 crore. In Q3FY23, IRCTC reported revenue of Rs 918 crore (up 5.2% sequentially) and in the year-ago period, it reported revenue of Rs 691 crore (39.6% YoY growth).

All the segments performed well in the March quarter. The maximum revenue jump came from Catering and Tourism segment (YoY), while the Internet ticketing segment reported muted numbers YoY. Let us look at segment revenue in detail.

Catering segment revenue jumped from Rs 266 crore in Q4FY22 to Rs 396 crore in Q4FY23 - 48.8% growth.

Rail Neer revenue increased from Rs 54.6 crore to Rs 73.4 crore - a 34.8% jump.

Internet Ticketing segment revenue was muted - it stood at Rs 295 crore in Q4FY23, a marginal increase from Rs 293 crore in Q4FY22.

Tourism segment revenue jumped from Rs 54.2 crore to Rs 138.5 crore in Q4FY23 - a massive 155% growth.

State Teertha segment reported revenue of Rs 65.4 crore in Q4FY23 from Rs 25.8 crore in Q4FY22.

The Tourism and Catering business reported good YoY numbers as the economy has completely opened up, and people are traveling now without any restrictions. 

Profits

In line with the jump in the top line, the company reported a profit of Rs 279 crore for the March 2023 quarter. In the year-ago period, the company has posted a net profit of Rs 214 crore, which translates to 30.4% YoY growth.

EBIDTA and Margins

IRCTC reported EBITDA (Earnings before interest, taxes, depreciation, and amortization) of Rs 324.6 crore in Q4FY34, up 16.5% from Rs 278.5 crore in the year-ago period. 

The margins have declined in the March 2023 quarter - the company reported a margin of 33.6% compared to 40.3% in the year-ago period. Sequentially, the margins declined 190 basis points. The company has said in its statement that the relatively lower share of the internet ticketing business, with extremely high margins, suppressed the overall margin for the company. 

Dividend

The company board has recommended a final dividend of Rs 2 per equity share of face value of Rs 2 each for FY23.

FY23 Result: Summary

For the full fiscal year (FY23), the company recorded 52% growth in its net profit at Rs 1,006 crore, while revenue rose 88% in FY23 to Rs 3,541 crore.

Source - https://irctc.com/index.html

CMP -       650    

Year High - 774

Year Low  - 557

IRCTC share price 

IRCTC got listed in October 2019, and since then, the stock has delivered over 300% returns to its investors. However, in the last one year, the stock price has underperformed - the stock has fallen nearly 3.5% compared to an 11% jump in the NIFTY50 index. In the last six months, the stock has fallen 11%. 

Returns 

One month 4.46%

3 months 16% minus

6 months 52%  MINUS

1 year - 1%

Scrip is extremely bullish and must be bought into in all dips.

Technicals - Moving Averages

20 DMA -  631

50 DMA -  615

100 DMA - 621

200 DMA - 658

Date 06 June 2023

This post is bought to you by Smart Investors - Indias Most Knowledgeable Equity Researchers.

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