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Posts in category Value Pickr
IRCTC: a necessity, a monopoly (30-05-2024)
IRCTC LIMITED Concall Summary Date: 29 May 2024
FINANCIAL HIGHLIGHTS
In Q4 FY24, the revenue from operations grew by 3.3% on a QoQ basis.
The YoY and QoQ growth in revenue was led by the catering segment during the quarter.
In FY24, the EBITDA grew by 14.9% YoY to ₹1,466 crore and EBITDA margin stood at 34.3% (v/s 36% in FY23).
Profit before exceptional items grew by 19.6% YoY to ₹1,170 crore in FY24 as compared to ₹978 crore in FY23.
As on 31st March 2024, the cash & bank balance stood at ₹2,263 crore.
The net worth of the company was ₹3,230 crore as on 31st March 2024.
In Q4 FY24, the company incurred capital expenditure of ₹55 crore. For FY24, it was at ~₹240 crore.
BUSINESS HIGHLIGHTS
CATERING
During the quarter, the catering business reported revenue of ₹530.8 crore, i.e., a growth of 34.1% YoY and 4.5% QoQ.
The EBIT margin moderated to 8.7% as compared to 15.4% in Q3 FY24 and 12.1% in Q4 FY23.
The company has a presence in over 120 prepaid trains, 440 mail, and express trains, and 702 trains under Train side vending (TSV). The margins in the prepaid trains are higher.
The recent tie-up with Swiggy and Zomato is progressing well. The company had started this year with ~60,000 orders booking per day. This has crossed 1,00,000 orders booked per day during this month. The company is booking revenue of ~₹1.5 crores per day and the margin is ~15%.
The company is providing e-catering services in 407 stations.
INTERNET TICKETING
The internet ticketing revenue grew by 16% YoY and 2.1% QoQ to ₹342.4 crore.
The EBIT margin for the business stood at 80.3% as against 83% in Q3 FY24 and 88.1% in Q4 FY23. The margin contracted due to government policy on the Unified Payments Interface (UPI).
The payment from UPI increased to 39% from 33% in Q4 FY23.
In Q4 FY24, the company booked 11.74 crore tickets.
During the quarter, the convenience fee revenue stood at ₹224 crore and non-convenience fee ₹118.3 crore.
During the quarter, I-pay revenue stood at ₹22.35 crore.
In FY24, the company booked 12.38 lakh tickets per day as compared to 11.82 lakh tickets in FY23.
IRCTC has applied for a payment aggregator license with the Reserve Bank of India (RBI).
TOURISM
The tourism business (including state teertha) revenue stood at ₹201.7 crore, i.e., a growth of 3.2% QoQ, however on a YoY basis, it declined by 1.1%.
During the quarter, the segment reported an EBIT margin of 9.4% v/s 12.1% in Q3 FY24 and 13.5% in Q4 FY23.
The state teertha business was impacted during the quarter.
RAIL NEER
Rail Neer segment revenue grew by 13.1% on a YoY basis, however on a QoQ basis it declined by 1% to ₹83 crore.
During the quarter, the EBIT margin improved to 13.3%.
In FY24, the company supplied ~12 lakh bottles per day as compared to ~11 lakh bottles per day in FY23.
The company is currently supplying ~14.5 lakh bottles per day.
FUTURE OUTLOOK
The management expects EBIT margin of ~8%-9% in tourism business and ~15% in catering business in FY25.
The company envisages adding more Vande Bharat trains to its portfolio in the catering business.
IRCTC: a necessity, a monopoly (30-05-2024)
IRCTC LIMITED Concall Summary Date: 29 May 2024
FINANCIAL HIGHLIGHTS
In Q4 FY24, the revenue from operations grew by 3.3% on a QoQ basis.
The YoY and QoQ growth in revenue was led by the catering segment during the quarter.
In FY24, the EBITDA grew by 14.9% YoY to ₹1,466 crore and EBITDA margin stood at 34.3% (v/s 36% in FY23).
Profit before exceptional items grew by 19.6% YoY to ₹1,170 crore in FY24 as compared to ₹978 crore in FY23.
As on 31st March 2024, the cash & bank balance stood at ₹2,263 crore.
The net worth of the company was ₹3,230 crore as on 31st March 2024.
In Q4 FY24, the company incurred capital expenditure of ₹55 crore. For FY24, it was at ~₹240 crore.
BUSINESS HIGHLIGHTS
CATERING
During the quarter, the catering business reported revenue of ₹530.8 crore, i.e., a growth of 34.1% YoY and 4.5% QoQ.
The EBIT margin moderated to 8.7% as compared to 15.4% in Q3 FY24 and 12.1% in Q4 FY23.
The company has a presence in over 120 prepaid trains, 440 mail, and express trains, and 702 trains under Train side vending (TSV). The margins in the prepaid trains are higher.
The recent tie-up with Swiggy and Zomato is progressing well. The company had started this year with ~60,000 orders booking per day. This has crossed 1,00,000 orders booked per day during this month. The company is booking revenue of ~₹1.5 crores per day and the margin is ~15%.
The company is providing e-catering services in 407 stations.
INTERNET TICKETING
The internet ticketing revenue grew by 16% YoY and 2.1% QoQ to ₹342.4 crore.
The EBIT margin for the business stood at 80.3% as against 83% in Q3 FY24 and 88.1% in Q4 FY23. The margin contracted due to government policy on the Unified Payments Interface (UPI).
The payment from UPI increased to 39% from 33% in Q4 FY23.
In Q4 FY24, the company booked 11.74 crore tickets.
During the quarter, the convenience fee revenue stood at ₹224 crore and non-convenience fee ₹118.3 crore.
During the quarter, I-pay revenue stood at ₹22.35 crore.
In FY24, the company booked 12.38 lakh tickets per day as compared to 11.82 lakh tickets in FY23.
IRCTC has applied for a payment aggregator license with the Reserve Bank of India (RBI).
TOURISM
The tourism business (including state teertha) revenue stood at ₹201.7 crore, i.e., a growth of 3.2% QoQ, however on a YoY basis, it declined by 1.1%.
During the quarter, the segment reported an EBIT margin of 9.4% v/s 12.1% in Q3 FY24 and 13.5% in Q4 FY23.
The state teertha business was impacted during the quarter.
RAIL NEER
Rail Neer segment revenue grew by 13.1% on a YoY basis, however on a QoQ basis it declined by 1% to ₹83 crore.
During the quarter, the EBIT margin improved to 13.3%.
In FY24, the company supplied ~12 lakh bottles per day as compared to ~11 lakh bottles per day in FY23.
The company is currently supplying ~14.5 lakh bottles per day.
FUTURE OUTLOOK
The management expects EBIT margin of ~8%-9% in tourism business and ~15% in catering business in FY25.
The company envisages adding more Vande Bharat trains to its portfolio in the catering business.
The Anti-Portfolio (30-05-2024)
I’ve got two juicy points for you:
-
How would you read into Exicomm’s latest results and those spicy indicators?( at below link)
https://assets-global.website-files.com/65dc05e17b45fb941d1d675a/6656f74891cacd69dfe4a84b_Investor%20Presentation%20on%20Audited%20Financial%20Result%20for%20quarter%20and%20financial%20year%20ended.pdf.
For example, the FY28 domestic charger market is predicted to be hotter than my mom’s curry, and Exicomm is aiming to whack 25% of that pie! Plus, their new plant is pumped up to start in FY25 . Considering the management experience market had with HFCL , I’m trying to shore up my conviction if Exicomm could be a long-term bet, say a five-year timeframe. I hold both: Exi forms 5% and HFCL 2% of my portfolio. Both have had a good run so far -
Any electrifying new ideas or names we should dig into in the transformer sector? some high-voltage suggestions ?
The Anti-Portfolio (30-05-2024)
I’ve got two juicy points for you:
-
How would you read into Exicomm’s latest results and those spicy indicators?( at below link)
https://assets-global.website-files.com/65dc05e17b45fb941d1d675a/6656f74891cacd69dfe4a84b_Investor%20Presentation%20on%20Audited%20Financial%20Result%20for%20quarter%20and%20financial%20year%20ended.pdf.
For example, the FY28 domestic charger market is predicted to be hotter than my mom’s curry, and Exicomm is aiming to whack 25% of that pie! Plus, their new plant is pumped up to start in FY25 . Considering the management experience market had with HFCL , I’m trying to shore up my conviction if Exicomm could be a long-term bet, say a five-year timeframe. I hold both: Exi forms 5% and HFCL 2% of my portfolio. Both have had a good run so far -
Any electrifying new ideas or names we should dig into in the transformer sector? some high-voltage suggestions ?
Narayana Hrudayalaya Ltd (30-05-2024)
The stock has entered stage 4 on weekly charts after a long time. Big players have decreased their stake in the company in this quarter. Also, green field capex projected for the FY25 is over 1000 crores and due to this margins are likely to take a hit in future. I was checking last year’s PPT and the management projected a capex of over 1000 crores for the FY24 as well. However, combined fixed assets and CWIP on the balance sheet have increased by only 570 crores compared to last year. Please correct me in case I have missed or miscalculated anything.
PS : Invested and have lost 28% gains in the last 3-4 months.
Narayana Hrudayalaya Ltd (30-05-2024)
The stock has entered stage 4 on weekly charts after a long time. Big players have decreased their stake in the company in this quarter. Also, green field capex projected for the FY25 is over 1000 crores and due to this margins are likely to take a hit in future. I was checking last year’s PPT and the management projected a capex of over 1000 crores for the FY24 as well. However, combined fixed assets and CWIP on the balance sheet have increased by only 570 crores compared to last year. Please correct me in case I have missed or miscalculated anything.
PS : Invested and have lost 28% gains in the last 3-4 months.
SKM Egg Products – thinking out of the shell (30-05-2024)
Hi, has anybody done a comparative study of Ovobel and SKM?
SKM Egg Products – thinking out of the shell (30-05-2024)
Hi, has anybody done a comparative study of Ovobel and SKM?
The harsh portfolio! (30-05-2024)
Hi Harsh,
Greetings!! Looking for your view on PI
15% revenue growth with sustained improvement in profits is guidance from Management.
On congervative if we consider 15% revenue growth with same profit margin of 22%, EPS of FY 25 is 127.6, with that EPS forward PE comes to 28. Seems cheap with PI quality.
Please requesting your views. Looks cheap or low tax issues need to be considered in eps? Are you adding?
Thanks as always.