IRCTC is the only company authorised by the Indian Railways
to provide catering services, e-ticketing services and packaged drinking water at railway stations and on trains.
IRCTC’s June quarter (Q1) numbers, announced last Friday, show the impact of the pandemic-led disruptions. It reported a 71.4 per cent year-on-year (YoY) drop in revenue to Rs 131.3 crore. This fall along with the weak operating leverage, led to a loss before tax of Rs 29.4 crore. The pain was felt across IRCTC’s business segments. For instance, the catering segment, which accounts for over 45 per cent of revenues, was down about 67 per cent YoY.
However, IRCTC, in the notes to its Q1 results, highlighted: “The company does not foresee adverse impact on the supply chains as and when the business is resumed wherever the operations were curtailed or have remain suspended on account of present pandemic.”
This indicates the company’s operational efficiency and implies a short turn-around time to revive operations. Thus, analysts like Joshi estimate around 20 per cent annual earnings growth for IRCTC between FY20 and FY23.
Not surprisingly then, the stock ended almost flat at Rs 1,368.85 on the BSE on Monday despite the weak results.