Indian Railway Catering & Tourism Corporation (IRCTC) Q4 10/11 earnings summary

Executive summary

• FY2010-11 total income reached a record ₹764.93 crore, up ~6% YoY; PBT rose ~37% to ₹129.79 crore, while PAT fell to ₹60.79 crore on higher income-tax provision.

• Catering policy changes shifted licensee catering operations to Railways; growth in ticketing and tourism helped offset the resulting business mix changes.

Financial highlights

• Total income was ₹764.93 crore vs ₹721.97 crore in FY2009-10; PBT was ₹129.79 crore vs ₹94.76 crore and PAT ₹60.79 crore vs ₹63.05 crore.

• Net worth rose to ₹211.41 crore from ₹162.76 crore; paid-up share capital remained ₹20 crore.

• Operating cash flow was ₹61.03 crore vs ₹107.06 crore; cash and bank balances closed at ₹246.11 crore vs ₹198.00 crore.

• Basic and diluted EPS were ₹30.39 vs ₹31.53; FY2010-11 dividend recommended was ₹12.16 crore excluding tax, or ₹14.13 crore including dividend tax.

Outlook and guidance

• Target set to reach ₹2,500 crore turnover by FY2015; FY2012 turnover target was ₹500 crore, below FY2011's ₹764.93 crore, with growth dependent on Railway support and policy initiatives.

• E-ticketing aims to reach 80% of reserved tickets; IATA accreditation supports planned entry into air ticketing.

• A Noida central kitchen was planned for ~25,000 meals/day; Ambernath water plant capacity of 2 lakh bottles/day was targeted for commissioning in FY2012-13.

• Planned expansion includes budget hotels, corporate and inbound travel, tourism products, non-railway catering, and packaged-water joint ventures.