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The Indian Railway Catering and Tourism Corporation (IRCTC), a Miniratna company governed under the Ministry of Railways has declared its Q1FY23 results today. The shares of IRCTC closed today with an upside gap of 2.13% at 672.50 apiece after the company reported a 198% increase in net profit for the quarter that ended in June. 5,461,816 shares were traded throughout the day, more than double the 20-day average of 2,219,799 shares.

IRCTC reported a profit after tax (PAT) or a net profit of 245.52 crore for the quarter ended 30 June 2022 which was 82.52 crore in Q1FY22 a YoY rise of 198%. The company reported revenue from operations of 852.59 Cr in Q1FY23 which was 243.35 Cr a YoY rise of 250%. The company reported a total income of 877 Cr in Q1FY23 compared to 257.94 Cr in Q1FY22 a YoY rise of 240%. The company's total expenses reached 547.70 Cr in Q1FY23 compared to 146.86 Cr in Q1FY22. The company's profit before tax (PBT) reached 329.30 Cr in Q1FY23 compared to 111.07 Cr in Q1FY23. In comparison to Q1FY22 at 111.5 crore, EBITDA, or earnings before interest, taxes, depreciation, and amortization, totalled 320.9 crore in Q1FY23 a YoY rise of 187%. The income from catering services increased dramatically, from 56.7 crore to 352 crore in Q1FY23 a YoY rise of 520%. A revenue of 301.6 crore was reported by the online ticketing industry, followed by 83.6 crore by Rail Neer, 81.9 crore by tourism, and 33.2 crore by State Teertha.

After the performance of IRCTC, Jinesh Joshi – Research Analyst, Prabhudas Lilladher Pvt Ltd has assigned a HOLD rating for the stock. He said “The stock currently trades at 54x our FY24E EPS estimate of Rs12.5. We currently have a HOLD rating on the stock with a TP of Rs649." He further added that “All the segments were EBIT positive. Tourism achieved EBIT breakeven for the first time since pandemic at 1.1% margin."

Commenting on the performance of IRCTC, Richa Agarwal, Senior Research Analyst, Equitymaster said “IRCTC has posted a good set of profit numbers amidst concerns about the impact of inflation on its operating cost. Its monopoly status and strong balance sheet continue to keep the stock in favour amongst investors."

On the NSE the shares of IRCTC touched a 52-week-high of 1,279.26 on 19th October 2021 and a 52-week-low of 499.47 on 09-August-2021 which means that at the current market price of 672.50 the stock is trading 47% below the 52-week-high and 34% above the 52-week-low. At the current market price the stock is trading above the 5 days, 10 days, 20 days, 50 days, 100 days EMA but below the 200 days Exponential Moving Average (EMA). The RSI indicator value for Indian Railway Catering and Tourism Corporation (IRCTC) as of 10/08/2022 is Rs. 72.90, which is in the overbought zone.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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