Result-Analysis-Elite-Wealth
Result Analysis: IRCTC Result Update Q2FY22
Particulars (In Rs. Cr.) Q2FY22 Q1FY22 Q2FY21 QoQ % YoY%
Revenue from Operations 404.94 243.37 88.56 66.4% 357.2%
Other Income 16.12 14.57 62.54 10.6% -74.2%
Total Income 421.06 257.94 151.09 63.2% 178.7%
Cost of Goods Sold 21.2 19.63 4.64 8.0% 356.9%
Employee Expenses 68.1 48.27 50.89 41.1% 33.8%
Expenses of Catering Services 28.05 19.04 6.79 47.3% 313.1%
Expenses of Tourism 30.21 8.95 3.16 237.5% 856.0%
Other Expenses 45.86 35.98 28.66 27.5% 60.0%
EBITDA 211.52 111.5 -5.58 89.7%
Finance Cost 2.12 3.77 1.33 -43.8% 59.4%
Depreciation 11.82 11.23 8.94 5.3% 32.2%
Tax 55.12 28.55 14.05 93.1% 292.3%
Profit After Tax 158.57 82.52 32.63 92.2% 386.0%
EBITDA Margin (%) 52.23% 45.82% -6.30% 642 5854
PAT Margin 37.66% 31.99% 21.60% 567 1606
EPS 9.91 5.16 2.04 92.1% 385.8%
Segment Revenue Q2FY22 Q1FY22 Q2FY21 QoQ % YoY%
Internet Ticketing 265.31 149.97 58.3 76.91% 355.08%
As % of Revenue 65.5% 61.6% 65.8% 390 -31
Catering 71.4 56.72 17.16 25.88% 316.08%
Rail Neer 41.17 29.26 9.24 40.70% 345.56%
Tourism 27.06 7.41 3.85 265.18% 602.86%
Segment PBIT Q2FY22 Q1FY22 Q2FY21 QoQ YoY
Internet Ticketing 220.34 116.87 61.34 88.53% 259.21%
Catering -0.15 -4.67 -20.45
Rail Neer 2.79 1.81 -2.27 54.14%
Tourism -21.23 -14.53 -8.69

Result Highlight: 

  • IRCTC Consolidated Revenue rose 66.4% QoQ and 357% YoY to Rs 404.9 crore.The revenue growth was witnessed across its all-business segments

  • The easing of COVID restrictions and rapid vaccination across the country resulted in improved mobility across states.

  • Revenues from its drinking water brand ‘Rail Neer” also grew by 346 percent YoY to Rs 41.1 crore compared to Rs 9.2 crore in the previous year.

  • Catering contracts awarded before 22nd March, 2020 have been treated as zero period due to Pandemic and accordingly, no income as well as railway share has accrued during the year 2020-21 and for the half year ended 30th September, 2021

  • For the quarter ended September 30, 2020, segment PBIT includes income under exceptional items of Rs. 42.37 Crore which is allocated to various segment results as under: – Catering – Rs. 12.51 Crore, Railneer – Rs. 1.52 Crore, internet Ticketing Rs. 27.53 Crore, Tourism – Rs. 0.78 Crore

Management commentary: 

  • reversed the decision of sharing of 50% convenience fee. IRCTC has the liberty to decide convenience fee charged and Govt. decision will not impact our destination.

  • Will be talking to Ministry as these kinds of decisions create fear among investors.

  • Expect 3000 Trains are running & only 10-15% shortage is the to reach normalisation

  • With Hardcore Tourism is giving good profits except Tejas. Taking tough calls regarding Tejas, May hike fare or decrease numbers of frequency.

  • In Q2FY22 numbers of tickets sold are 11 Crore 22 lakh

  • Loss in Tourism widened due to inclusion of Tejas. And there is some revision in Tejas policy which we requested to railway to reconsider. Other than Tejas, tourism is in Profit. For profitability, will increase price or will curtailed expenses

  • Recovering losses of catering services as situation normalizing.

  • Convenience fee account for 69% of Internet ticketing revenues. The remaining 31% comes from service charges from B2B partners, earnings from ads, partner enrollments fees, co – branded credit card earnings and many other sources. Revenue from Non – Convenience increasing thereby reducing dependency on Convenience fee.

  • Revenue for e-catering business is increasing and Tourism, will go for heavy promotion.

Outlook:

IRCTC registered strong in Q2FY22 across all of its segment. Monopolistic positioning across business give IRCTC high growth potential. Sharp recovery is expected in tourism revenues in H2FY22. Early signs of these are evident from pick-up in utilization for Tejas Express and also strong demand for its offerings for Holiday packages.  For Rail Neer With new plants commissioning the total capacity have reached 14mn per day Increased capacities and sourcing stations would imply even wider coverage for Rail Neer. IRCTC has several untapped pricing potential which could be encashed over next couple of years that includes; 1) Convenience fees hike, 2) Cessation of discounts on UPI, 3) Shift in convenience fees from per PNR to Per Passenger based pricing, 4) Increase in Rail Neer pricing (last hike was in FY12; at that time it was increased from Rs12 to Rs15).

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