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.