Indian Railway Catering & Tourism Corporation (IRCTC) Q4 08/09 earnings summary

Executive summary

• FY 2008-09 total income rose 17.3% YoY to ₹618.77 crore; net profit increased 124% to ₹46.50 crore, with expenditure falling to 88% of income from 93%.

• Revenue growth was led by licensee catering, internet ticketing and tourism, despite bedroll and cleaning business transferring back to Railways.

Financial highlights

• PBT was ₹73.85 crore versus ₹32.97 crore; PAT was ₹46.50 crore versus ₹20.75 crore. Results included ₹30 crore haulage charges, matching the prior year.

• Total income was ₹618.77 crore versus ₹527.66 crore; income from licensee catering rose to ₹341.02 crore, internet ticketing to ₹74.81 crore and tourism to ₹27.94 crore.

• Net worth reached ₹114.46 crore versus ₹78.85 crore; reserves and surplus were ₹94.46 crore at 31 Mar 2009.

Outlook and guidance

• Luxury tourist train was expected to begin operations by Jan 2010; planned initiatives included expanding educational tours, tourism tie-ups and travel services for foreign visitors.

• Plans included 100 additional licensee cell kitchens, over 20 food plazas, 20 fast-food units and 5 quick-service kiosks; Danapur Railneer capacity was targeted to rise from 5,500 to 8,500 cartons per day.

• Modernizing internet-ticketing infrastructure and establishing a disaster recovery site were among planned priorities.