**IRCTC – **
Q1 FY 25 concall and results highlights –
Revenues – 1120 vs 1002 cr
EBITDA – 375 vs 343 cr, up 9.3 pc YoY ( margins @ 33 vs 34 pc )
PAT – 308 vs 232 cr ( LY had an exceptional loss of 52 cr in Q1 )
Cash and Cash Equivalents @ 2908 cr
Quarterly breakdown of revenues –
Internet Ticketing – 329 cr, up 14 pc YoY ( through own website and mobile app ). www.irctc.co.in is the most transacted website across Asia – Pacific region ( > 3.5 cr transactions / month ). Has a dominant mkt share of 84 pc in reserved rail tickets. Segmental EBITDA margins @ 82.76 pc
Catering – 559 cr, up 17 pc YoY ( includes mobile catering services through onboard Pantry and static catering services at Jan Aahar, Cell Kitchens, food courts ). Segmental EBITDA margins @ 13.94 vs 14.61 pc YoY
Travel and Tourism – 124 cr, down 12 pc YoY ( offer domestic and international tour packages, car rentals, air ticketing, educational tours, cruise packages ). De-growth in the segment is primarily attributed to temporary cessation of operations of State Teertha trains and Bharat Gaurav trains in Q1 due general elections
Packaged drinking water – 107 cr, up 17 pc YoY ( have 15 operational plants across India. All are fully automated with zero manual interventions ). Segmental EBITDA @ 12.65 pc vs 13.17 pc YoY
Out of total caring revenues, 12 pc came from Vande Bharat trains. Railways are introducing more Vande Bharat + other premium trains. These trains provide them better revenues in the catering segment
At present, total number of trains that IRCTC ( their total addressed mkt ) is 1259 trains. IRCTC doesn’t cater to short distance trains
Out of 329 cr earned through ticketing breakdown of convenience fee and non-convenience fee @ 224 cr ( vs 198 cr ) and 105 cr ( vs 92 cr )
Number of tickets sold in Q1 FY 25 @ 11.81 cr vs 10.43 cr ( in Q1 FY 24 )
Capacity utilisation of Rail Neer business stood @ 86 pc. Q1 was very good for Rail Neer business aided by harsh summers. Company’s total capacity to produce bottled drinking water is 17.68 lakh bottles / day. In Q1, company produced an avg of 14 lakh bottles / day. Company is in the process of commissioning another plant with capacity of 0.72 lakh bottles / day @ Vijaywada by Oct 24
For the catering business, company’s EBITDA margins generally fluctuate between 12-15 pc depending on the mix of trains being catered
Company aims to grow its revenues @ > 15 pc and PAT @ > 20 pc for FY 25 vs FY 24
Company has also ventured into E-Catering business where they have aggregators like Zomato, Swiggy and others on their platform. This business grew by 35 pc YoY in Q1
The last price hike taken by the company in the catering business was in 2019. Price hikes have to be approved by the railway board – ministry of railways. ( this can be a potential positive trigger – as and when it materialises )
The breakdown of 1259 trains that the company is catering to is as follows – 117 pre-paid trains ( like Shatabdi, Rajdhani, Vande Bharat etc ), 440 mail express with pantry and 702 mail express where they run PSP
No plans of increasing the price of Rail Neer bottles – basically to keep competition away ( it’s priced @ Rs 15/lit vs Rs 20/lit for most other brands ). They want to improve their efficiencies, capacity utilisation to further improve the margins in this segment
Disc: not holding, not SEBI registered. May buy if the stock price corrects from hereon
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