Strong growth in the catering business was observed this quarter, attributed to significant additions of trains, according to IRCTC's Sanjay Kumar Jain.
Two key factors contributed to the excellent results in the catering and tourism sectors in the quarter ended December, Chairman and Managing Director Jain said. First, the festival season fell in the third quarter compared to the second quarter of the previous year, and second, the addition of Vande Bharat and other trains to the railway system, he said.
The railway sector has experienced significant growth, and the addition of any train contributes to all four businesses that IRCTC is engaged in. These include ticketing, catering, Rail Neer, and tourism, Jain said.
According to Jain, the Ministry of Railways has introduced a new catering policy. Under this policy, vendors are now allowed to cluster trains and invest in base kitchens, not only within railway premises but also outside of them.
Jain pointed out that this policy offers two significant benefits: first, vendors have an assured business from IRCTC, and secondly, they can also extend their operations into the private sector.
IRCTC Q3 FY24 Highlights (Consolidated, YoY)
The Indian Railways Catering and Tourism Corp.'s third-quarter profit rose, but missed analysts' estimates due to a lower mix of its internet ticketing business.
The national transporter's net profit increased 17.4% to Rs 299.9 crore in the quarter ended December, according to an exchange filing on Tuesday. That compares with the Rs 302.6-crore consensus estimate of analysts tracked by Bloomberg.
Key Highlights
Revenue rose 21.81% to Rs 1,118.3 crore. (Bloomberg estimate: Rs 1,069.8 crore).
Ebitda grew 20.92% to Rs 393.97 crore. (Bloomberg estimate: Rs 377.0 crore).
Ebitda margin narrows 25 bps to 35.22%. (Bloomberg estimate: 35.2%).
Net profit up 17.40% at Rs 300 crore. (Bloomberg estimate: Rs 302.6 crore).
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