IRCTC shares experienced a 5.2% decline, dropping to an intraday low of Rs 1,027.15. This followed the company’s announcement of its net profit for the fourth quarter of FY24, which increased to Rs 284 crore from Rs 278.32 crore, marking a 2% year-on-year rise. The uptick in net profit was attributed to increased ticket sales.
Additionally, the company reported a revenue of Rs 1,154.8 crore for the quarter, reflecting a robust 20% year-on-year growth compared to Rs 965 crore in the corresponding period of the previous year. -IRCTC
IRCTC’s operating margin reached Rs 402.96 crore, marking a 3.4% year-on-year increase. However, its EBITDA margin dropped to 34.89%, down by 1.9 % points from the last year. This decline can be attributed to the increased contribution from lower-margin segments like catering and state teertha & tourism, compared to the higher-margin internet ticketing segment. The company’s diversified revenue streams impacted its overall margin performance, highlighting the trade-offs between different business segments. Such fluctuations underscore the need for strategic balance and management of various revenue streams within IRCTC’s operations.
IRCTC’s stock has experienced a recent decline of over 4% in the last five days. Nonetheless, it has delivered a substantial return of 54.6% in the past six months and has significantly boosted investors’ wealth by 67.73% over the past year. Remarkably, the stock has surged by more than 6.6 times in value over the last five years, indicating robust long-term growth potential despite short-term fluctuations.
In contrast, the Nifty 50 benchmark index has increased by 1.25% over the past five days. It has yielded a return of 14% in the last six months and has raised investors’ wealth by 23% in the past year. Over the last five years, the index has seen a substantial growth of 91%, showcasing its long-term performance compared to IRCTC’s stock fluctuations.
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