Indian Railway Catering & Tourism Corporation Ltd.'s net profit for the quarter ended December rose close to three-fold due to higher revenue from convenience fees and pilgrimage trains.
“The surge [in internet ticketing business] is primarily on account of convenience fee re-introduction which was almost Rs 52 crore per month,” Mahendra Pratap Mall, chairman and managing director at IRCTC, told BloombergQuint. “State Teertha vertical, where trains are sponsored by the state governments for pilgrimage, also performed well.”
The fee charges were reinstated from September last year after it was stopped after demonetisation in 2016.
The company announced its third-quarter results on Wednesday. Net profit rose 180 percent to Rs 205.8 crore compared to the same period last year. Internet ticketing segment jumped four times year-on-year to Rs 226.9 crore.
IRCTC Q3 Results: Key Highlights (YoY)
- Net profit up 2.8 times to Rs 205.8 crore
- Revenue up 64.6 percent to Rs 716 crore
- Ebitda up 2.7 percent to Rs 265.7 crore
- Margin at 37.1 percent versus 22.7 percent
On Thursday, IRCTC shares rose 11.67 percent to Rs 1,580.40 apiece on the NSE while the benchmark Nifty 50 fell 0.22 percent to 12,174.65 points. Intraday, the company's stock hit an all-time high of Rs 1,609.80.
WATCH | IRCTC's Mahendra Pratap Mall on the company's Q3 results
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