IRCTCNSEQ4 FY2022June 3, 2022

Indian Railway Catering And Tourism Corporation Limited

7,707words
155turns
11analyst exchanges
2executives
Management on call
Rahul Jain
DOLAT CAPITAL
Ajit Kumar
DIRECTOR FINANCE & CFO - INDIAN RAILWAY CATERING AND TOURISM CORPORATION LIMITED
Key numbers — 40 extracted
Rs.691 Crore
last wave was not that dangerous as the second wave was. Q4 of financial year 2022 revenue was at Rs.691 Crores and it saw strong growth of 28% quarter-on-quarter i.e., consecutive quarter and more than dou
28%
cond wave was. Q4 of financial year 2022 revenue was at Rs.691 Crores and it saw strong growth of 28% quarter-on-quarter i.e., consecutive quarter and more than doubled on year-over-year given that t
3.5%
quarter had the impact of pandemic. The most important factor is that the revenue for Q4 is just 3.5% lower than the pre-COVID level. It means we are very near to the pre-COVID levels maybe this year
40%
siness segment the change is the business mix resulting in EBITDA margin coming to nearly 40% versus 42.8% year-over-year and 51.7% quarter-over-quarter. However, the absolute EBITDA of Rs.27
42.8%
ent the change is the business mix resulting in EBITDA margin coming to nearly 40% versus 42.8% year-over-year and 51.7% quarter-over-quarter. However, the absolute EBITDA of Rs.277.3 Crores wa
51.7%
iness mix resulting in EBITDA margin coming to nearly 40% versus 42.8% year-over-year and 51.7% quarter-over-quarter. However, the absolute EBITDA of Rs.277.3 Crores was rather very much in lin
Rs.277.3 Crore
y 40% versus 42.8% year-over-year and 51.7% quarter-over-quarter. However, the absolute EBITDA of Rs.277.3 Crores was rather very much in line with Rs.279 Crores in Q3 of the previous financial year. Net profit
Rs.279 Crore
r-over-quarter. However, the absolute EBITDA of Rs.277.3 Crores was rather very much in line with Rs.279 Crores in Q3 of the previous financial year. Net profit before exceptional item for Q4 of the previous
Rs.218 Crore
financial year. Net profit before exceptional item for Q4 of the previous financial year came at Rs.218 Crores versus Rs.209 Crores in the Q3 of financial year 2022 and Rs.107 Crores in the Q4 of financial y
Rs.209 Crore
profit before exceptional item for Q4 of the previous financial year came at Rs.218 Crores versus Rs.209 Crores in the Q3 of financial year 2022 and Rs.107 Crores in the Q4 of financial year 2021. For the fin
Rs.107 Crore
financial year came at Rs.218 Crores versus Rs.209 Crores in the Q3 of financial year 2022 and Rs.107 Crores in the Q4 of financial year 2021. For the financial year 2022, revenue came to Rs.1880 Crores wh
Rs.1880 Crore
and Rs.107 Crores in the Q4 of financial year 2021. For the financial year 2022, revenue came to Rs.1880 Crores which grew nearly by 1.4 into year-over-year given that the financial year 2021 had much severe
Advertisement
Guidance — 18 items
Ajit Kumar
opening
“But for further years good margins will be there.”
Rajni Hasija
qa
“But the complete process maybe we are hopeful that we will be able to complete by June end, if not June end at least July first week we will be able to finish the entire process.”
Rajni Hasija
qa
“But Rail Neer segment continues to be a profitable business and the profit from the Rail Neer will be there it is only 15% of the profit may go there which would be compensated with the upcoming new more plants.”
Rahul Jain
qa
“Right, now henceforth whatever will be the, let us say FY2023 if we make Rs.100 Crores of profit 15% before paying tax will be paid to government towards their share?”
Jinesh Joshi
qa
“What is the total sum which we have earmarked and how much would we intend to spend in FY2023?”
Rajni Hasija
qa
“So, our capex will be around nearly Rs.80 to Rs.90 Crores this year.”
Rajni Hasija
qa
“Similarly, for more executive lounges the way we launch we will be adding more and more licensee also.”
Rajni Hasija
qa
“In the catering while mobile catering we will be able to match up.”
Rajni Hasija
qa
“So, the sharing will be there as per the MoU signed between Ministry of Railways and IRCTC.”
Omprakash Kaveri
qa
“Going forward the current classification would hold, right?”
Risks & concerns — 8 flagged
In the last quarter of the previous financial year IRCTC has been able to once again demonstrate its resilient business model though the impact of the wave-3 of the COVID-19 was there, we were little lucky as the impact of the last wave was not that dangerous as the second wave was.
— Rajni Hasija
Q4 of financial year 2022 revenue was at Rs.691 Crores and it saw strong growth of 28% quarter-on-quarter i.e., consecutive quarter and more than doubled on year-over-year given that the base quarter had the impact of pandemic.
— Rajni Hasija
For the financial year 2022, revenue came to Rs.1880 Crores which grew nearly by 1.4 into year-over-year given that the financial year 2021 had much severe impact of the pandemic as compared to the current year, the year passed.
— Rajni Hasija
Number one is the internet ticketing segment that has demonstrated on impact of third wave of infection and revenue for the quarter was at R.292.8 Crores growing by 42.4% year-over-year and decline by 6.4% quarter-over- quarter due to lower ticketing volumes.
— Ajit Kumar
The Rail Neer saw in the Q4 revenue of Rs.51.9 Crores, 4% growth quarter-over-quarter, reported EBITDA loss came at Rs.24.3 Crores mainly due to the impact of that 15% the railways share on profit of the previous year that is amounting to Rs.27.13 Crores was remitted back to railways that is the main reason.
— Ajit Kumar
This could be a main contributor, the activity in the 2S front has also gone up, in fact it took off only in the month of February the impact of COVID was still there in the month of January.
— Rajni Hasija
Similarly, the refund is nearly 18% so it just remains the same, we have not noticed any impact of this movement.
— Rajni Hasija
So, over a period of time if the transition is happening well, I am not travel forecaster but given an option to a person, the person would certainly like to travel in the confirmed kind of a setup rather than uncertain setup.
— Rajni Hasija
Advertisement
Q&A — 11 exchanges
Q
Congratulations on very strong numbers. My first question is related to significant revenue traction in the catering business. In our earning call we have not done assessment about the catering contract but with the end of the quarter we were able to see significant jump in revenues. So, if you could explain what led to this massive increase and how many contracts have normalized to potential revised rates on the pricing?
Rajni Hasija
I can be proud of my team if I say so, because when the cooked food started it started in the month of November, but we made effective gradually till December and January to March we saw sudden jump because of the fast-tendering process being followed by IRCTC where lot of powers were delegated to the juniors. If you ask me that how many tenders were finalized this number is going to be in thousands, because initially the tenders were given for a shorter period then for six months and now again we are going to start the process. So, the cooked food start was the main reason and increasing the
Q
Thanks for the opportunity. I have a question on the catering side. As per the news report which was published some time back it was stated that Indian Railway had decided to take over the responsibility of retail of food plazas and fast-food units come up in certain this zone citing delays from our end. So, what is the latest development on this side if you can please explain?
Rajni Hasija
We were very fortunate to handle the situation because most of our tenders were in process, not even for the single unit the tendering process for all the unit was in process and at the advance stage of tendering. So, as of now not even a single food plaza has been handed over back to railways rather what was with the IRSDC, Indian Railway Station Development Corporation, that food plaza has been handed over back to IRCTC, so it has not impacted us much and as far as the tendering is concerned it is a continuous process the contractors complete their contract period, again it is given on the c
Q
Hi! Good afternoon Madam. I have few house-keeping questions. One is pertaining to 2S, in the fourth quarter out of the average the total internet ticketing revenue of Rs.268 Crores what was contributed by 2S if you could specify?
Rajni Hasija
36%. Even in fourth quarter? Yes. Okay, both in terms of volume and value or there must be a difference? In terms of volume only. Value wise 2S is very cheap. Exactly, so value wise what would it be in terms of value? I am not having the value wise figure readily available with me and I cannot give these figures on the basis of approximation actually. So, I do not have the value wise figure, I can only give you the number of tickets as of now. Okay, and in this Rs.268 Crores what was the convenience, non-convenience fee break up for fourth quarter? The total revenue from the non-convenience re
Q
Congratulation madam on the excellent set of numbers. I have a question regarding the average realization per ticket for this quarter and my second question is EBITDA level for the internet ticketing segment for this quarter?
Rajni Hasija
It is nearly Rs.38000 Crores which we realized for Ministry of Railways and the total number of ticket that we issued was around 41 Crores. 41 Crores for this year, right? 41.74 Crore tickets were issued by IRCTC this year and we realized for government of India, Ministry of Railways around Rs.38000 Crores and number of passengers that we booked was 73.43 Crores. So, it is nearly Rs.16.6 per ticket. Okay, madam it is Rs.16.6 per ticket is the average realization? Per ticket realization. Okay, and madam the EBITDA levels in this particular internet ticketing segment is relatively high as you sa
Q
Thank you for giving me the opportunity. Madam, what is the capacity utilization of Tejas?
Rajni Hasija
Capacity now is nearly, we call it occupancy level i.e., another term, now we are running more than 70%. And what level it will break even? Break even happens at more than 75%. Okay, we are very near can we accept that it should happen in this June quarter? Hopefully, we are able to achieve this quarter. Okay, one more question on the catering side. When this catering started from November onwards, which your license given at the old rates and I believe that the license revision as per the new rate was to happen sometime in this quarter something. So, have we already done that and any reflecti
Q
Hi! Madam, good afternoon. One question on trade payables, when I look at the balance sheet FY2021 ending trade payables has been restated. So, as per the previous financials it was Rs.180 Crores now in this Q4 results that Rs.180 Crores is restated to some Rs.580 Crores odd. So, what is related to the pre-statement in trade payables?
Ajit Kumar
It is only trade payable which we have classified correctly in Q4 accounts . Going forward the current classification would hold, right? This current classification is now correct. This was on the advice of our statutory auditor. Sure, thank you. Thanks a lot.
Q
What is the average ticket booking in the Q4?
Rajni Hasija
In the previous quarter I just mentioned 12.87 lakh tickets in a day. Now, currently what is the average ticketing? Now, it is nearly somewhere about 12 lakhs but some days it will be 11 lakh and some day it will be 13 lakhs also. Okay, what is the average in April? For the month of April, sorry I am not getting April figure before I go I will give you the April figure also or you can get it from the internet ticketing. Okay, one more question madam? It will be really 13 lakhs because it is the peak season. We have already been telling continuously that April – May are peak seasons for us. It
Q
Yes madam, you have said that for this financial year 2021 – 2022 the non-convenience fee has gone up to Rs.337 Crores. So, there has some component of this non-convenience there is a loyalty program, so can you elaborate on the loyalty program?
Rajni Hasija
Loyalty program we have with the SBI card and now we have for the Bank of Baroda card also. This SBI card is working with us since year 2007 or 2008, so there when we sell some card the value of the card initial for first year Rs.500 there we get around Rs.403 is with then IRCTC for selling the card and the forthcoming year some share from the bank charges from the customer is shared with the IRCTC so, whatever happens through IRCTC platform we share. So, in that segment we already shared, we have already earned in this financial year nearly Rs.37 Crores. Okay, and the advertisement revenue fo
Q
Hi! What I wanted to know is that the current ticket issued per day is about 12.87 lakh do you see these numbers going substantially any time soon?
Rajni Hasija
In the month of April because of the season temporarily it has gone up more than 13 lakhs in May also I am pretty sure today I have not taken the figure, it is going to be nearly the same. But since the 2S is not going to be there in the reserve segment some decrease maybe noticed. But after 30th June the things are going to settle. So, we will come to know as far as my experience in this work of ticketing goes in any case it will be much more than the pre- COVID levels, it was only 8.25 Crores because there has been a transition of a customer from the offline mode to online mode. The increase
Q
Hi! Thanks for the opportunity and good day. My question is about on internet ticketing what is the percentage of unreserved tickets to total tickets for Indian Railways and what change do you expect and second question relating to internet ticketing is, do you see any increase in price for the convenience going in the future couple of years?
Rajni Hasija
I will answer your second question first, we do not foresee any change in the pricing of convenience fee that we are charging from our customers as of now. But as far as the percentage of the unreserved segment is concerned it is right, 7% of the total inventory available. I am telling you from my experience and which I have worked in the railways. Total I think 7% of the inventory is only reserved, but the revenue from the reserved segment is much more than the unreserved that is the thing I have learned in Indian Railways that I can quote but the exact figures you can see on the annual repor
Q
Thank you very much all the investors for patient hearing and I hope we have been able to clear all your doubts and able to address any query. In case of any further queries you may also send it to our relationship officer who can also send the reply through email. However, I am also available round the clock where all the queries of you can be answered. So, staying with the IRCTC is the good proposition as it was earlier, so we can wish each other a very good luck for the coming year and let us hope that the way the previous year has been kind to us, the upcoming year will also be. Thank you
Management
Speaking time
Rajni Hasija
63
Madhu Dey
15
Moderator
13
Ayan Bera
13
Rahul Jain
12
D N Shah
6
Ajit
6
Jins Varghese
6
Rattan Joneja
6
Jinesh Joshi
5
Advertisement
Opening remarks
Rahul Jain
Thank you Ryan. Good afternoon everyone. On behalf of Dolat Capital, we welcome you all to the Q4 and twelve months fiscal 2022 Conference Call of IRCTC Limited. I take this opportunity to welcome the management of IRCTC represented by Smt. Rajni Hasija, who is the CMD of the company and Mr. Ajit Kumar, who is Director Finance and CFO of the company. Now, I would like to hand the conference over to IRCTC management to take the proceedings forward. Over to you, please!
Rajni Hasija
Good afternoon everyone. I hope you and your dear ones are in good health and spirits. I welcome you all to this Con-Call to discuss the performance of your company that is IRCTC Limited, for the quarter and the year ended 31st March 2022. Yesterday, the company had announced the audited financial results for the fourth quarter and year ended on 31st March 2022 and the same has also been disclosed on both the stock exchanges. Please allow me to share with you a brief overview about Q4 of fiscal 2022 and results of our company. Following this our Director Finance who is CFO of the company too will provide the details and performance of our business segments post which we shall be having a question-and-answer session. I begin with the brief view of the salient features of our results, which you must have seen by now already. In the last quarter of the previous financial year IRCTC has been able to once again demonstrate its resilient business model though the impact of the wave-3 of the
Ajit Kumar
Good afternoon, everybody. I hope you all to be in a good health. I shall first give brief overview about Q4 FY2022 results post which we shall have the question-and-answer session. This Q4 FY2022 revenue for the quarter saw strong improvement both on quarter- over-quarter and year-over-year basis. The revenue of Rs.691 Crores grew by 27% quarter- over-quarter and by 104% year-over-year. Given that catering segment, which has relatively lower margin that has shown the sharp increase in its revenue share and the overall EBITDA margin 40.1% versus 42.8% year-over-year and 51% quarter-over-quarter. However, we have been able to maintain the absolute EBITDA almost at Q3 FY2022 levels. Now, the business segments of the company. Number one is the internet ticketing segment that has demonstrated on impact of third wave of infection and revenue for the quarter was at R.292.8 Crores growing by 42.4% year-over-year and decline by 6.4% quarter-over- quarter due to lower ticketing volumes. However
Advertisement
← All transcriptsIRCTC stock page →