Indian Railway Catering & Tourism Corporation (IRCTC) Q4 15/16 earnings summary

Executive summary

• FY16 total income rose 31.94% YoY to ₹1,505.74 crore; PBT increased 44.21% to ₹308.66 crore and PAT increased 44.40% to ₹188.63 crore.

• Performance exceeded FY16 MoU targets: turnover achieved 133.34% of target, EBITDA/net block 314.00%, and PAT per employee 249.90%; an Excellent MoU rating was expected.

Financial highlights

• Turnover increased 28.65% to ₹1,366.78 crore; total income reached ₹1,505.74 crore versus ₹1,141.21 crore in FY15.

• EBITDA was ₹329.32 crore versus ₹234.45 crore; interest and finance charges were ₹0.12 crore, depreciation ₹20.54 crore, and EPS ₹94.32 versus ₹65.31.

• Operating cash flow was ₹287.65 crore versus ₹68.70 crore; cash and cash equivalents closed at ₹619.12 crore versus ₹355.82 crore.

• Reserves and surplus rose 23.06% to ₹522.07 crore; net worth increased 22.02% to ₹542.07 crore.

Outlook and guidance

• FY16-17 preparation began for a phased catering-services transfer, including staff planning, tender documents, service unbundling, Base Kitchen networks and train-load sizing.

• Two Rail Neer plants at Bilaspur and Nagpur were expected to commission in FY16-17; production capacity was projected to rise from 7.54 lakh to 8.96 lakh bottles/day.

• Plans included extending e-catering across 409 A1/A stations, adding WVMs, expanding tourism packages and services, and commissioning ~36 food plazas/Fast Food Units in FY16-17.