IRCTC - Indian Railway Catering & Tourism Corporation Ltd Share Price

The management of IRCTC provided a positive outlook during the Q4 and FY '25 Earnings Conference Call held on May 29, 2025. They reported an all-time high operating revenue of INR 1,269 crores for Q4 FY '25, representing a year-on-year growth of 10%. For the entire fiscal year, operating revenue reached INR 4,675 crores, reflecting a growth of 9.73% compared to FY '24.

Key financial highlights include the company's EBITDA of INR 1,549 crores, which grew 5.71% annually, and a PAT of INR 1,315 crores, up 18.30% from INR 1,111 crores in FY '24. The Board recommended a final dividend of INR 1 per share, totaling INR 8 per share for FY '24-'25, the highest ever, amounting to INR 640 crores.

Forward-looking statements included the growth trajectory of their tourism segment, which surged to INR 274.4 crores, marking a 38.17% year-on-year increase, and the expectation of continued revenue growth in the tourism vertical. Management indicated ongoing initiatives to strengthen their business model, including innovations in service delivery and a focus on high-growth areas like Internet ticketing.

The management also mentioned their optimism about further introducing new brand offerings, especially in the tourism sector, and indicated that the introduction of new train services, such as the Bharat Gaurav and other special tourism trains, would enhance revenue further. Moreover, they remain focused on improving operational efficiencies and maintaining profitability as core priorities moving into FY '26.

1. Question: What is the status of payment aggregator license applied to RBI?
Answer: We submitted our application for in-principle approval to the RBI in December 2024. We've provided clarifications they requested, and we're currently awaiting their response. While they take their time, we are actively following up.

2. Question: There is a significant increase in bills receivables and current assets. Is this pending payment from the state government involved in tourism for senior citizens? How long will it take for them to pay?
Answer: Yes, the increase is predominantly with Indian Railways, our parent organization. We're receiving payments periodically. We've implemented a system to get a percentage of our bills as advances, ensuring smoother cash flow.

3. Question: Could you elaborate on the tourism vertical's significant revenue increase and future growth opportunities?
Answer: Certainly! The tourism revenue increased substantially in the last quarter, and we aim to capitalize on this momentum moving forward. We are committed to expanding our tourism services further as communicated in previous calls.

4. Question: Why was catering revenue flat this quarter despite expected boosts from Mahakumbh and Bharat Gaurav trains?
Answer: The Mahakumbh trains this year were operated without catering services to prioritize transporting passengers efficiently. Last year, we had catering services for Aastha Express. This difference contributed to the flat performance.

5. Question: Can you clarify the exceptional gain of INR45 crores this quarter, particularly the INR40 crores related to a one-time reconciliation of legacy business?
Answer: This gain stemmed from clearing legacy transactions. The Board initiated efforts to clean up our balance sheet. This included recovering dues from KTDC and reversing excess provisions, resulting in that one-time revenue boost.

6. Question: How is the Tejas train performing in terms of revenue and occupancy?
Answer: The Tejas trains had an average occupancy of 93.2% this quarter, an increase from 85% last year. Additionally, these trains generated a profit of INR9.18 crores from a revenue of INR177 crores.

7. Question: What are the revenue contributions from the Bharat Gaurav train and other tourism-related trains?
Answer: The Bharat Gaurav train generated INR277 crores, Maharajas' Express brought in INR92 crores, and Golden Chariot contributed INR2.83 crores this financial year. Profit margins were approximately 8% for Bharat Gaurav and 18% to 20% for Maharajas' Express.

8. Question: What are your future plans regarding the tourism sector, and are new trains being introduced?
Answer: We are planning to add one more rake to the Bharat Gaurav trains, which currently have 10 rakes running across various popular itineraries. We continue to see strong potential for growth in tourism.

9. Question: Any updates on government policies impacting the catering business?
Answer: Our catering services for trains like Vande Bharat and Amrit Bharat are prepaid, enhancing revenue potential. These shifts in operations should positively impact our catering and IT business as they expand.

10. Question: What are the company's immediate challenges or concerns regarding government policy changes?
Answer: We don't foresee significant impacts from recent government policy changes. We have resolved past issues with the government and are focused on strong business growth moving ahead.