IRCTC Q2 results: Net profit soars 386% YoY to Rs 159 crore

MUMBAI: Indian Railway Catering and Transportation Corporation () on Monday reported a 386 per cent year-on-year (YoY) rise in net profit to Rs 159 crore for the quarter ended September 2021.

The platform company’s revenue from operations in the quarter spiked 357.3 per cent on-year to Rs 404.9 crore.

Both the bottomline and topline of the company were aided by a low base in the year-ago quarter and improvement in demand in the said quarter.

While all segments of IRCTC performed strongly on a YoY basis, the largest segment – Internet ticketing – had a stellar quarter.

Sales from internet ticketing spiked 355 per cent YoY to Rs 265.3 crore as the company saw robust railway ticket sales in the quarter as travelling picked up. The reopening of states post the second wave of the COVID-19 pandemic along with a high vaccination rate improved mobility in the economy during the reported quarter.

Catering, which is the second-largest revenue contributor, saw its sales rise 315 per cent on-year to Rs 71.4 crore in the reported quarter as the government eased restrictions on serving of food on railway platforms as well as on trains.

The surge in business activity also meant higher costs for the company. During the quarter, total expenses incurred by the company nearly doubled on-year to Rs 207.4 crore, largely led by catering and tourism services.

Shares of IRCTC were up 2.4 per cent at Rs 865.8 on the National Stock Exchange.