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IRCTC declared an interim dividend of Rs 4 per share for FY2024-25 amounting to a total payout of Rs 320 crore; Should you buy?
IRCTC
Shares of the state-run Indian Railway Catering and Tourism Corporation (IRCTC) tumbled 3 per cent to its day’s low of Rs 792.45 on the BSE following the company’s second quarter results.
For the quarter ending September 30, 2024, IRCTC’s total income rose to Rs 1,123 crore, a 8.1 per cent increase from Rs 1,039 crore in Q2 FY24.
Operating revenue surged by 7.2 per cent, reaching Rs 1,064 crore compared to Rs 992.4 crore a year earlier.
IRCTC’s EBITDA for Q2 FY25 rose marginally by 1.7 per cent year-on-year to Rs 372.79 crore, with the EBITDA margin slipping slightly by 190 basis points to 35 per cent from 36.9 per cent in the previous year.
For the first half of FY25, IRCTC reported a 10.24 per cent increase in total income, reaching Rs 2,292 crore compared to Rs 2,079 crore in H1 FY24. Earnings before interest and tax (EBIT) for the half-year climbed to Rs 615 crore, up from Rs 526 crore.
The company also declared an interim dividend of Rs 4 per share for FY2024-25, equating to 200 per cent of the paid-up share capital and amounting to a total payout of Rs 320 crore. IRCTC has set November 14 as the record date for this dividend distribution.
IRCTC’s catering and internet ticketing segments continued to perform strongly, while the tourism division saw a decline.
Catering revenue increased 11.68 per cent YoY, reaching Rs 481.95 crore, up from Rs 431.52 crore. Internet ticketing also saw growth, with revenue rising 13.36 per cent to Rs 370.95 crore, compared to Rs 327.50 crore in the previous year.
However, the tourism segment experienced a 27.35 per cent drop in revenue, down to Rs 124.44 crore from Rs 158.48 crore.
On Monday, IRCTC shares declined 2 per cent to Rs 815 on NSE.
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