Discover the Exciting Growth of IRCTC Q3 Profits: Expected 16% Increase to Rs. 295 cr by Prabhudas Lilladher
Net Sales are expected to increase by 12.9 percent Y-o-Y (up 4.2 percent Q-o-Q) to Rs. 1,036.7 crore, according to Prabhudas Lilladher.
As we enter the third quarter of the financial year, the Indian Railway Catering and Tourism Corporation (IRCTC) has reported a significant growth in its profits. The leading travel and e-commerce company is expecting a 16% increase in its profits to Rs. 295 crore for the third quarter, as per the projections made by the renowned financial services company, Prabhudas Lilladher. This exciting growth comes as welcome news for both the company and its shareholders, as it reflects the strong performance and potential growth of IRCTC in the travel and tourism industry.
IRCTC has become an integral part of the Indian railway system, offering a wide range of online services including ticket booking, train reservations, e-catering, and tour packages. The company has also ventured into other verticals such as e-ticketing for other government organizations, luxury trains, and budget hotels. With the increasing popularity of online services and the growth of the Indian travel and tourism industry, IRCTC has emerged as a major player, constantly expanding its offerings and improving its performance.
In the second quarter of the financial year 2021-22, IRCTC reported a net profit of Rs. 266.06 crore, which was a significant increase from the previous year’s earnings of Rs. 172.45 crore. This remarkable growth of 54% in profits was driven by a surge in ticket bookings and e-catering services, as the COVID-19 restrictions eased and travel resumed. The company’s consolidated revenue for the quarter also witnessed a growth of 45.8%, reaching Rs. 602.73 crore.
Taking into consideration the strong performance in the first half of the financial year and the expected growth in the third quarter, Prabhudas Lilladher has projected a 16% increase in IRCTC’s profits to Rs. 295 crore. This projection is based on the assumption that the same trend of revenue and profit growth will continue in the third quarter.
The growth in profits for IRCTC can be attributed to various factors, including the increase in demand for online services and the company’s strategic expansion plans. The introduction of new services such as e-catering, tourism packages, and budget hotels has also played a significant role in boosting its revenues and profits. Additionally, the company’s efficient management of resources and continuous efforts towards cost optimization have also contributed to its success.
Moreover, with the Indian government’s focus on boosting domestic tourism and promoting digital initiatives, IRCTC is in a favorable position to witness continued growth and success in the future. The company’s strong presence in the railway ecosystem and its constant efforts towards providing a seamless and convenient travel experience to its customers have also helped in building consumer trust and loyalty.
As a result of its impressive performance and growth, IRCTC has been among the top-performing stocks in the Indian market, with its shares witnessing a significant surge since its initial public offering (IPO) in 2019. The company has also consistently paid dividends to its shareholders, offering a steady return on investment.
In conclusion, the expected 16% increase in IRCTC’s profits for the third quarter is a testament to the company’s strong performance and its potential for growth in the future. With its efficient management, constant expansion, and focus on delivering quality services, IRCTC is well-positioned to maintain its upward trend and continue to be a dominant player in the travel and e-commerce industry. As a shareholder or a consumer of its services, this exciting growth is undoubtedly good news and reinforces the trust and confidence in IRCTC as a reliable and profitable company.
