December 3, 2022

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IRCTC cracks after railway stock misses Street estimates in second quarter

IRCTC cracks after railway stock misses Street estimates in second quarter

IRCTC Share Price: Indian Railway Catering And Tourism Corporation Limited (NSE: IRCTC) share price cracked in early morning deals on Tuesday, November 15 as investors’ sentiment turned negative following the release of the second quarter business earnings. IRCTC which is a wholly owned subsidiary of the Indian Railways under the Ministry of Railways on Monday released its Q2 results wherein it missed the Dalal Street expectations.

The company’s profit after tax (PAT) increased by 42.54 per cent at Rs 226 crore against Rs 158.57 crore a year ago. However, on quarter-on-quarter (QoQ) basis, the PAT narrowed by 7.93 per cent with Q1FY23 figures being Rs 245.52 crore. The company reported a sharp decline in its margins, falling from 52 per cent to 38 per cent in the quarter under review, according to a Zee Business channel report.

The stock opened at Rs 750 apiece on NSE, falling 3 per cent from its previous close of Rs 758.80. 

The company’s revenue from operation stood at Rs 805.80 crore against Rs 404.93 crore, up 99 per cent. The catering segment was one of the biggest contributors. Total income grew 97.55 per cent to Rs 831.79 crore from Rs 421.05 crore YoY.

The total expenses of the company were up 47.75 per cent from Rs 55.11 crore in Q2FY22 to Rs 81.42 crore in Q2FY23.

IRCTC stock has yielded a negative return of 16 per cent to its investors in the last one year. In perspective, the stock available at Rs 903.40 apiece on November 15, 2021, is now available at around Rs 760 a piece. The stock has a 52-week range from Rs 929 to Rs 557.

Currently, the company’s market cap is around Rs 60.70 trillion crore, according to the NSE website.

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