IRCTC Q4 results: Net profit tanks 23% YoY to Rs 104 cr, misses estimates; firm to pay Rs 5 dividend

MUMBAI: Indian Railway Catering and Tourism Corporation today reported a 23.2 per cent year-on-year fall in its net profit to Rs 103.8 crore for the quarter ended March, which was below analysts’ estimates.

The railway ticket booking company reported a 41.2 per cent year-on-year fall in revenue from operations to Rs 338.8 crore, which was also below Street’s expectations.

The weakness in the company’s earnings was largely a factor of the muted demand for rail travel during the quarter as compared to the year-ago quarter due to the Covid-19 pandemic.

However, the company’s board recommended a final dividend of Rs 5 per share for the financial year ended March 2021.

The hit to the company’s topline came from the loss of revenue in the catering and tourism business given government restrictions on serving of food during travel.

IRCTC’s catering revenues plummeted 70 per cent year-on-year in the quarter to Rs 67.38 crore whereas, tourism sales declined 69 per cent to Rs 31.6 crore.

The railway internet ticketing business held up during the quarter as sales grew 9.5 per cent on-year to Rs 212 crore.

Shares of the company ended 0.5 per cent lower at Rs 2,068 on the NSE.