IRCTC’s Q1 Profit Jumps 32.51% to ₹307.71 Crore, Driven by Strong Catering Growth; Tourism Revenue Falls

The Indian Railway Catering and Tourism Corporation (IRCTC) reported a strong 32.51% increase in net profit, reaching ₹307.71 crore in the first quarter (April to June) of the financial year 2024-25. This is a significant rise compared to the ₹232.21 crore profit recorded in the same period last year.

IRCTC’s total revenue from operations grew by 11.81% to ₹1,120.15 crore during this quarter, up from ₹1,001.78 crore in the corresponding quarter of the previous year.

The main driver behind this profit boost was the impressive growth in the company’s catering segment, which saw revenues increase by 17.14% to ₹558.88 crore, compared to ₹477.07 crore in the same period last year. The catering business was the largest contributor to the company’s profit growth, outperforming other segments like Rail Neer, internet ticketing, and tourism.

However, not all segments performed well. The tourism segment saw a decline in revenue, dropping 12.35% to ₹124.87 crore, down from ₹142.48 crore in the same quarter last year.

Despite the positive financial results, IRCTC’s shares closed 0.65% lower at ₹918.30 after Tuesday’s trading session, slightly down from the previous close of ₹924.35. The company released its Q1 results shortly before the market closed on Tuesday.

Avinash Gorakshkar of Profitmart Securities mentioned that IRCTC might benefit from new projects that are expected to add around 800 km of new tracks to the Indian railway network. While IRCTC, which is the only government-authorized provider of online tickets, catering, and packaged drinking water at railway stations and trains, may see benefits from these projects, the impact is likely to be long-term.