Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Indian Railway Catering And Tourism Corp Ltd (BOM:542830, Financial) reported an all-time high profit of INR 308 crore for Q1 FY 2025, representing an 8.2% growth quarter-on-quarter and a 32.5% increase year-on-year.
- The EBITDA for the quarter rose to INR 375 crore, marking a 9.32% growth year-on-year and a 3.38% increase quarter-on-quarter, with an improved EBITDA margin of 33.47%.
- The catering segment saw a significant profit increase of 68% quarter-on-quarter, highlighting strong demand and operational efficiency.
- The internet ticketing segment demonstrated resilience with a 13.4% year-over-year revenue growth, despite nearing saturation with 84% of tickets booked through the portal.
- The company has been upgraded to a Schedule A company by the Government of India, which is expected to strengthen its organizational structure and support future growth.
Negative Points
- The tourism segment saw a decrease in revenue, with a 38.1% decline quarter-on-quarter and a 12.4% drop year-on-year.
- Advertisement income from sources other than Google and Facebook decreased by INR 12 crore compared to the last quarter, impacting non-convenience fee revenue.
- The catering segment's EBITDA margin moderated to 13.94% from 14.61% year-over-year, indicating some pressure on margins.
- The company faces seasonal volatility in its business segments, particularly in catering and internet ticketing, which can impact quarterly performance.
- Pending legal cases regarding previous tariff hikes remain unresolved, adding uncertainty to future financial outcomes.
Q & A Highlights
Q: How much revenue was generated from Vande Bharat trains in FY 2024?
A: Approximately 12% of the INR1,000 crores revenue from premium trains was generated from Vande Bharat trains. (Sanjay Kumar Jain, Chairman & MD)
Q: Will the EBITDA margin for Vande Bharat trains be higher than the overall catering segment margin?
A: The EBITDA margin for Vande Bharat trains is expected to be in the same range as the overall catering segment, but as more premium trains are introduced, the absolute revenue and profit will increase. (Sanjay Kumar Jain, Chairman & MD)
Q: What is the current capacity utilization for Rail Neer plants?
A: Capacity utilization has increased from 73% to 86%, with an average production of 14 lakh bottles per day in Q1 FY 2025. (Sanjay Kumar Jain, Chairman & MD)
Q: What is the breakup between convenience and non-convenience fees for Internet ticketing in Q1 FY 2025?
A: Convenience fees were INR225 crores, and non-convenience fees were INR105 crores. (Sanjay Kumar Jain, Chairman & MD)
Q: What is the CapEx guidance for FY 2025?
A: Additional capacity is planned for Rail Neer plants, with a new plant in Vijayawada expected to be commissioned in October. Further plants are being identified in Mysore and Varanasi. (Sanjay Kumar Jain, Chairman & MD)
Q: What are the growth and margin targets for the coming year?
A: The Company aims to maintain a CAGR of 17.3% in revenue and 21% in net profit over the next five years. (Sanjay Kumar Jain, Chairman & MD)
Q: What is the status of pending cases regarding previous tariff hikes?
A: No comments can be made on matters that are sub judice. (Sanjay Kumar Jain, Chairman & MD)
Q: What are the plans to grow the ticketing business for flights, buses, and hotels?
A: There is ample scope for growth in these areas, and the Company has certain plans in place, which will be shared in due course. (Sanjay Kumar Jain, Chairman & MD)
Q: What is the share of UPI transactions for the quarter?
A: UPI transactions accounted for 45% of the total, up from 37% last year. (Sanjay Kumar Jain, Chairman & MD)
Q: What is the revenue from Vande Bharat trains this quarter?
A: Revenue from Vande Bharat trains was INR12 crores for the quarter. (Sanjay Kumar Jain, Chairman & MD)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
