Manashimaya
The state-owned company, Indian Railway Catering and Tourism Corporation Ltd. (IRCTC), is in the spotlight as it prepares to announce its Q1 results. With high expectations, investors and market watchers are keen to see how the company fared in the first quarter of the fiscal year. We’ll talk about IRCTC’s Q1 results predictions in this blog post, with a focus on net profit, revenue growth, and the company’s outlook for the next few quarters.
IRCTC Stocks Are in the News as the Q1 Earnings Report Announcement Looms: What to Anticipate
As the business is ready to announce its Q1 results, attention has been focused on IRCTC shares. Leading stockbroker Prabhudas Lilladher predicts that IRCTC will announce a June quarter net profit of Rs 303.30 crore, an increase of 6.7% year over year (YoY). This is in line with the net profit of Rs 284.10 crore recorded in the same quarter of the previous year. As the Q1 results announcement approaches, IRCTC shares are being closely watched in large part because of this projected gain.
Sales and EBITDA Margins: Positive Indicators
In addition to net profit, IRCTC’s sales are expected to rise by 11.2% YoY, reaching Rs 1,114.20 crore compared to Rs 1,001.80 crore in the same quarter last year. This impressive sales growth is one of the reasons IRCTC shares are under the spotlight as the Q1 earnings announcement looms. The brokerage also forecasts an EBITDA of Rs 393.40 crore, with a margin of 35.30%, up by 107 basis points. These figures suggest a strong performance by the company, further justifying why IRCTC shares are in focus ahead of the Q1 results.
Ticketing, Catering, and Tourism: Key Revenue Drivers
IRCTC’s online ticketing platform remains a significant revenue driver, with Prabhudas Lilladher expecting the online ticket booking figure to reach 11.6 crores for the quarter. This is projected to generate Rs 320 crore in ticketing revenue. Meanwhile, catering revenue is expected to increase by 7% YoY to Rs 510 crore, while the tourism segment is predicted to grow by 11% YoY. These revenue streams are crucial factors that explain why IRCTC shares are under the spotlight as the Q1 earnings announcement looms.
Challenges in the Hospitality Sector
Despite the optimistic projections, IRCTC faces challenges, particularly in the hospitality sector. The domestic brokerage has noted a sluggish travel environment during the June quarter, influenced by severe heatwaves and the general elections. Occupancy rates in hospitality dropped to 59-61% in May 2024, lower by 100-200 basis points YoY, reflecting subdued demand. However, despite these challenges, IRCTC shares remain under the spotlight as the Q1 earnings announcement looms, given the company’s robust performance in other areas.
Looking Ahead: AGM and Dividend Announcement
As IRCTC shares continue to be under the spotlight ahead of the Q1 earnings announcement, investors will also be watching the company’s upcoming events closely. IRCTC will hold an earnings conference call on Wednesday, August 14, 2024, to discuss the Q1FY25 results. Additionally, the 25th Annual General Meeting (AGM) is scheduled for Friday, August 30, 2024, where discussions on final dividends for the financial year 2023-24 will take place. With Friday, August 23, 2024, fixed as the record date for dividend entitlement, shareholders will be keenly awaiting further announcements.
In conclusion, with IRCTC shares under the spotlight, as the Q1 earnings announcement looms, all eyes are on the company’s performance and prospects. Investors and analysts alike will be keenly analysing the results, looking for signs of growth and potential challenges as the company moves forward into the next quarter.
