The Indian Railway Catering and Tourism Corporation (IRCTC) embarked on a noteworthy journey post its Annual General Meeting (AGM), triggering an impressive upswing in its share price. The AGM‘s positive outcomes were swiftly mirrored in the stock market, with IRCTC‘s share price scaling new heights and reflecting a bullish trend. Let’s delve into the developments that underpin this promising trajectory.
Share Price Momentum: A Flourishing AGM
IRCTC’s share price soared to new heights in the wake of its AGM, marking a promising start to the week’s trading. The stock opened higher and surged to an intraday high of ₹684.10 on the NSE, charting an impressive 3 percent intraday rise. This upward trajectory signaled the market’s favorable reception of the AGM’s proceedings.
Dividends and Commitment to Shareholders
A standout highlight of the AGM was IRCTC‘s robust financial performance, leading to a noteworthy declaration—a final dividend of ₹2 per share. This dividend is a testament to the company’s commitment to rewarding its shareholders. Investors on the record date will reap the benefits of this dividend, further solidifying their stake in the company.
Post-Pandemic Recovery and Financial Milestones
Seema Kumar, the Chairperson & Managing Director at IRCTC, underscored the remarkable post-pandemic recovery and the company’s financial achievements. The service sector’s rapid rebound in FY22 was a driving force, especially within the contact-intensive services sub-sector. Notably, this sub-sector not only recuperated from the pandemic-induced setback but also exceeded pre-pandemic levels in Q2 of FY23. This resurgence was fueled by a release of pent-up demand, eased mobility restrictions, and widespread vaccination coverage.
Impressive Financial Performance
Financially, IRCTC showcased remarkable progress during FY 2022-23. The company’s total income surged to ₹3,661.90 crores, showcasing substantial growth from ₹1954.48 crores in the previous fiscal year. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) demonstrated a commendable rise to ₹1,396.65 crores compared to ₹949.42 crores in the preceding fiscal year. Furthermore, the company’s Profit After Tax (PAT) surged to ₹1,005.88 crores from ₹659.55 crores in FY 2021-22. These figures translated to impressive margins, with EBITDA and PAT at 38.14 percent and 27.47 percent, respectively.
Dividend Declarations: A Mark of Excellence
Given the company’s stellar performance, shareholders unanimously greenlit a final dividend of ₹2.00 per share (₹160 Crores) for FY 2022-23 during the AGM. This addition complements the interim dividend of ₹3.50 per share (₹280 Crores) declared in February 2023 and disbursed to shareholders in March 2023. Cumulatively, the dividends declared for FY23 amount to ₹5.50 per equity share of a face value of ₹2 each.
Bullish Momentum and Future Projections
IRCTC’s share price recently demonstrated a fresh breakout on a chart pattern at ₹675 apiece, signaling a bullish trend. This suggests the stock’s potential to ascend to levels of ₹725 and ₹750 in the short term. Investors are advised to consider these targets while maintaining a prudent stop loss at ₹650 apiece levels to effectively manage risk.
Conclusion: A Promising Trajectory Ahead
IRCTC’s commendable performance, coupled with dividend declarations, has kindled a surge in share price and bolstered market sentiment. The company’s strategic resilience and adept recovery approach position it for a promising future trajectory. As the stock charts an upward course, shareholders and investors can anticipate a continued ascent for IRCTC.
Disclaimer: The information provided here is for educational purposes only and should not be considered financial advice. Always conduct thorough research and consider consulting a financial professional before engaging in algorithmic trading.