Despite Q2 net profit and sales growth, IRCTC shares hardly decline; stock is up 5% year to date

 Despite Q2 net profit and sales growth, IRCTC shares hardly decline; stock is up 5% year to date

The creation of a wholly-owned subsidiary (WOS) for the IRCTC I-Pay business has been authorized by the IRCTC board.

Even though the Indian Railway Catering and Tourism Corporation (IRCTC) reported strong results for the quarter that ended in September 2023, the company's shares were trading slightly in the negative on November 8. The company's net profit increased by 30% year over year to Rs 294.67 crore as a result of increased ticket and catering sales. Revenue for the railway company increased by 23% YoY to Rs 995.31 crore.

IRCTC shares were slightly down at Rs 677.20 on the National Stock Exchange at 10:18 a.m. The stock has increased by around 5.58 percent so far in 2023.

The Indian government has only authorized IRCTC to provide online train tickets, catering services for trains, and bottled drinking water at Indian train stations and stations. Holiday packages, hotel reservations, and luxury train journeys are just a few of the many tourist and hospitality services it now offers.

In the reviewed quarter, IRCTC's sales from state teertha increased by 119 percent year over year to Rs 64.84 crore. The tourist category saw a 39 percent increase in sales to Rs 96.55 crore in the reporting quarter, while the catering segment, which contributes the second-largest amount of income, saw a 29 percent increase in sales at Rs 431.5 crore.

The establishment of a wholly-owned subsidiary (WOS) for the IRCTC I-Pay business was authorized by the IRCTC board in conjunction with the Q2 profits, pending permission from the registrar of companies and other relevant authorities.

For the fiscal year 2023–2024, it has announced an interim dividend of Rs 2.50 per equity share with a face value of Rs 2. This equates to Rs 160 crore, or 125 percent of the paid-up share capital.  has been set as the dividend record date.

Devyani International, the Indian operator of KFC, Pizza Hut, and Costa Coffee, teamed up with IRCTC earlier this month to submit bids for railway food court contracts.

This initiative, which will take the shape of a joint venture between the two firms, comes as part of the government's ambition to modernize railway stations. IRCTC is the major supplier of culinary services to the Indian Railways.