IRCTC Q3 Results: Net Profit Rises 14% to ₹341 Crore, Revenue Up 10%
IRCTC Q3 Results: Indian Railway Catering and Tourism Corporation (IRCTC) has posted a strong financial performance in the third quarter of FY25, reporting a 13.7% rise in net profit and a 10% increase in revenue compared to the same period last year.
IRCTC’s Q3 Performance Overview
The state-run railway catering and tourism company reported a consolidated net profit of ₹341 crore for Q3 FY25, up from ₹300 crore in the corresponding quarter of the previous year. This surge in profit highlights IRCTC’s resilient business model, strong operational efficiency, and increasing demand for its services.
In terms of revenue, IRCTC clocked ₹1,224.7 crore in Q3 FY25, compared to ₹1,115.5 crore in the same quarter last year, marking a 10% year-on-year (YoY) growth.
The company’s steady performance is backed by robust revenue generation from ticketing, catering, tourism, and packaged drinking water services.
Key Financial Highlights
| Financial Metric | Q3 FY25 | Q3 FY24 | YoY Growth |
|---|---|---|---|
| Net Profit | ₹341 Cr | ₹300 Cr | +13.7% |
| Revenue from Operations | ₹1,224.7 Cr | ₹1,115.5 Cr | +10% |
| Earnings Per Share (EPS) | Updating Soon | Updating Soon | – |
| Operating Profit Margin (OPM) | Updating Soon | Updating Soon | – |
Dividend Announcement
IRCTC’s board has declared a second interim dividend of ₹3 per share for the financial year 2024-25. The company has fixed February 20, 2025, as the record date for determining shareholders eligible for this dividend.
The official statement mentioned:
“The board has declared a second interim dividend at the rate of ₹3 per equity share of face value ₹2, i.e., 150% for FY25.”
Stock Market Performance & Key Ratios
IRCTC’s stock has seen fluctuations over the past year, with a 52-week high of ₹1,148 and a low of ₹736.
Here are some key financial metrics for IRCTC:
| Metric | Value |
|---|---|
| Market Cap | ₹60,100 Cr. |
| Current Price | ₹751 |
| High / Low | ₹1,148 / ₹736 |
| Stock P/E | 50.0 |
| Book Value | ₹44.0 |
| Dividend Yield | 0.84% |
| ROCE (Return on Capital Employed) | 53.8% |
| ROE (Return on Equity) | 40.4% |
| Face Value | ₹2.00 |
| Debt to Equity Ratio | 0.01 |
| Industry P/E | 51.5 |
| Debt | ₹42.3 Cr. |
| PEG Ratio | 1.55 |
| Intrinsic Value | ₹356 |
| Graham Number | ₹122 |
| Piotroski Score | 6.00 |
| Price to Book Value | 17.1 |
| No. of Equity Shares | 80.0 Cr. |
| ROIC (Return on Invested Capital) | 40.9% |
Growth Drivers & Future Outlook
1. Strong Demand for Online Ticketing
IRCTC enjoys a monopoly in online railway ticket bookings. With increasing demand for train travel and growing digital adoption, the company continues to benefit from higher ticketing volumes.
2. Expanding Catering and Tourism Services
IRCTC’s catering services have seen steady growth, contributing significantly to its revenue. The company is also expanding its luxury tourism packages, including Bharat Gaurav trains and international tours, which could drive further growth.
3. Diversification into New Business Areas
IRCTC is expanding its packaged drinking water (Rail Neer) business and exploring new revenue streams, such as corporate bookings and AI-based analytics for better customer service.
4. Consistently High Margins and Dividend Payouts
The company’s strong return ratios, high ROE (40.4%) and ROCE (53.8%), indicate efficient capital allocation and profitability. Moreover, its low debt-to-equity ratio of 0.01 makes it financially stable.
Should You Invest in IRCTC?
Pros:
✔ Monopoly Business Model: IRCTC is the sole authorized entity for railway ticket bookings, ensuring a steady revenue stream.
✔ Debt-Free and High Return Ratios: With negligible debt and strong profitability, the company is a fundamentally strong investment.
✔ Consistent Growth in Revenue & Profit: IRCTC’s earnings have consistently grown due to increasing demand for railway services.
Cons:
❌ High Valuation: With a P/E ratio of 50, IRCTC is trading at a premium valuation compared to industry peers.
❌ Regulatory Risks: As a government-run enterprise, any policy changes can impact its profitability and operations.
Conclusion
IRCTC’s Q3 FY25 results reflect its strong financial position and growing business segments. With consistent revenue growth, high profitability, and a strategic focus on diversification, the company remains a strong player in the Indian railway ecosystem. However, investors should keep an eye on valuations and potential regulatory changes before making investment decisions.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.