IRCTC Q2 results preview: Revenue likely to rise 4% YoY; interim dividend announcement and other key details to watch out for

The investors will also keep a watch on the announcement of interim dividend for FY25 on November 4.

In a filing to the stock exchanges on October 17, the company said, “it is hereby informed that the 142nd meeting of the Board of Directors of the Company is scheduled to be held on Monday, 4 November 2024, inter-alia to consider and approve the unaudited financial results (Standalone and Consolidated) of the Company for the quarter and half year ended on 30 September 2024.”

The Board will also consider the declaration of an interim dividend to the shareholders for the financial year 2024-25, the company informed the bourses.

IRCTC’s revenue from operations is likely to rise nearly more than 4% in the September quarter of FY25. The Indian Railways PSU is likely to report revenue of ₹1,169 crore for the September quarter, according to consensus estimates on investing.com.

Key factors to watch out for

Investors will keenly monitor the impact of new initiatives undertaken by IRCTC in the September quarter. These initiatives include the reduction of the advance ticket booking period and the introduction of a ticket booking facility for Regional Rapid Transit Systems (RRTS) Trains on the IRCTC Platform.

Earlier, on October 17, the IRCTC informed the exchanges that the Advance Reservation Period (ARP) for booking tickets has been reduced to 60 days from the previous window of 120 days. The company also clarified that there will be no change in the number of trains running daily which will maintain the reserved ticket capacity. The company added that the reduction will have no impact on its Internet Ticketing revenue through convenience fees charged on e-tickets booked through its platform.

The reduction in the booking window aims to reduce the frequent occurrences of long waiting lists, especially during festive seasons.

Earlier on August 13, IRCTC signed a Memorandum of Understanding (MoU) with the National Capital Region Transport Corporation (NCRTC) to enhance the travel experience for passengers of the Regional Rapid Transit Systems (RRTS) and Indian Railways through the ‘One India – One Ticket’ initiative.

IRCTC Dividend Announcement

The investors and experts will also keep a watch on the board’s decision on the interim dividend for FY25, as announced earlier. The company said that it has fixed Thursday, November 14, 2024, as the record date for determining eligibility of shareholders for payment of the interim dividend.

Investors are eagerly looking forward to the declaration of the interim dividend. The company has announced a final dividend of ₹4 per share so far in FY25. Earlier in FY24, the company announced a dividend of ₹4.5 per share.

IRCTC posted 32% rise in Q1 PAT

IRCTC reported over 11% year-on-year (YoY) rise in consolidated revenue from operations at ₹1,120.15 crore for the quarter ended in June 2024 compared to ₹1,001.78 crore in the quarter ended June 2023. The company’s revenue from operations for the June quarter fell by nearly 3% from ₹1,154.77 crore in the March quarter of FY24.

In Q1FY25, IRCTC’s consolidated profit-after-tax grew over 32% to ₹307.71 crore compared to ₹232.21 crore in Q1FY24. Sequentially, the company’s net profit also increased more than 8% from ₹284.18 crore in the Q4FY24.

IRCTC shares trade higher ahead of results

IRCTC shares closed at ₹833.85 apiece, up 1.53%, during the special Muhurat trading session on the NSE on November 1, ahead of the results. The state-owned company’s stock has rallied 2.42% in the past five sessions. The railway stock dropped over 10% in a month. Shares of IRCTC have fallen over 6% year-to-date, while rising over 26% in the last one year.