IRCTC Revenue Breakup 2024: Four Segment

IRCTC revenue breakup is generating enough revenue from their revenue breakup, as Indian Railway Catering and Tourism Corporation has restarted the services since the train started playing on 12th May 2019 but the share price has barely moved, so because of this investors are not very helpful to the company prospects.

Overview

As we all know in the pandemic coronavirus crisis, people are forced to avoid unessential travel, and the pessimism around tourism and the travel sector, from the airline to travel operators to the hotel chain, has hurt IRCTC too even through the Indian Railways subsidiary which is a monopoly. And here they just cash as it has on their book which is three times the quarterly profit. Here we will cover all such details related to the IRCTC revenue breakup.

IRCTC Profit and Loss

IRCTC's net worth income rose INR 3,230 crore despite the decline in profit margin, as the quarterly revenue of March 2024 is INR 1,187 Crore, but in June 2024 the revenue is INR 1,172 Crore, as overall till now the Revenue of 2024 is INR 4,435 Crore which is an increase from the previous year 2023 which was INR 3,662 Crore.

So the higher ticket sales offset the massive fall in profit margin and boosted the net income of the rail ticketing monopoly IRCTC by 33.3 percent on year to INR 308 for the June 2024 quarter, as in the March quarter was INR 284 Crore as it declined from INR 300 crore profit for the December 2023 quarter. So the yearly profit of 2024 till now is INR 1,111 Crore.

Revenue came up 11.8% which said the company offers online tickets and manages the food services on trains. As for the quarter that ended in March 2024,  Indian Railway Catering and Tourism Corporation reported consolidated sales of INR 1,187 crore and a profit of INR 284 Crore.

The decline in the profit margin was due to the higher contribution of other segments such as catering, tourism, and state teertha, which are the low-margin segments in comparison with internet ticketing. So the contribution of Internet ticketing is to overall revenue which decreased to 28.5 percent from 29 percent last year.

The IRCTC is the only entity authorized by the government to provide online railway tickets, catering services to the railways, and packages for drinking water at the railway station and the trains. So the government owns 62.4% of the company while the foreign portfolio and domestic institutional investors each own 7.1% and 10.5%. The regular shareholders own 20%.

IRCTC Revenue Segment

So the recovery of the  Indian Railway Catering and Tourism Corporation business, and their share prices, depends on where it makes most of its money so there a four segments. 

As it evolved revenue streams over the year, as it diversified beyond its initial focus on online ticketing, so here are the key revenue sources for the IRCTC, and let’s see how it evolved.

Catering

As IRCTC is among the country's best hospitality and catering establishments, where the vast operation spans passenger trains, station premises, railway stations, and various ancillary business activities, firming our presence in the transportation and hospitality sector. 

As they provide the best catering services on trains and at railway stations across India. So the catering was managed by the India Railways directly, but later it was outsourced to IRCTC. Let us know in detail.

• Revenue is generated by the sale of food and beverages on trains and at stations by catering contracts and commissions. As the IRCTC is offering onboard catering services in 1,250+ trains on a pan-India basis. 
• The e-catering at 400+ stations with the 2,000+ partners providing equality catering services, and customized regional menus in all 51 Vande Bharat trains. 
• So the IRCTC catering services servicing 16 lakh+ meals per day. 
• They offer convenient food and beverage delivery service to train passengers which fulfills the IRCTC application and the collaboration food partner, as the contribution to revenue is 45.60%.

Internet Ticket

Well, this remains one of the primary revenue sources for the IRCTC. It initially gained prominence by providing online ticketing services for the Indian Railways. This over the years has improved its platform and made it more user-friendly, and efficient. Thereby increasing the revenue from the ticket booking commissions.

• 82.68% share in the reserved ticket which is the booking of Indian Railways.
• As on average, there is 12.38 lakh tickets per day were booked online in the financial year 2023-2024.
• Here, is the next generation where e-ticketing is supported by high capacity which serves to book more than 28,000 tickets per minute, as there are 12.21 crore mobile apps on Android and iOS downloads so far.
• E-tickets for the train, buses, and flights are all at the fingertips with our mobile application, as the contribution to revenue is 30.33%.

Travel and Tourism

Here the industry makes up little more than a percent of the company's total income. This year IRCTC  had to postpone all of their overseas excursions for months owing to the government-imposed travel ban. The state government funds, the state teertha program, that is for the pilgrimage trains.

• 134% growth in the number of passengers in the financial year 2023-2024.
• Here are the 337 trips of Aastha trains, which are carrying 5.48 lakh passengers.
• Then they offer 4 Teja express trains. As there they have specially designed tours for Ram Katha Yatra, NRIs, Saurashtra Tamil Sangam, Kash Tamil, etc.
• Here, they provide tour packages with dedicated trains to specific destinations, as they offer an enriched tourist experience, and the contribution to revenue is 16.42%.

Rail Neer

The IRCTC accounts for over 7% of the company's overall revenue, selling millions of bottles on average each month. Here the brand is for the packaged drinking water. As it is currently focused on meeting 100% of the demand for packaged drinking water. And it is with the Railways by the strategic capital expenditures and the capacity which is enhancement initiatives.

• They have 19 plants of a Rail Neer.
• They have an installed production capacity of 17.68 lakh liters per day.
• Here, they have a presence in more than 410+ Indian railway stations, and there are 39 crore+ bottles of Rail Neer produced in the financial year 2023-2024. 
• The manufacturing and providing of rail neer, and packaged drinking water to the travelers, as the contribution to revenue is 7.65%.

Conclusion

In conclusion, they are based on the IRCTC financials and the business plan. The Ministry of Railways monopoly gives additional impetus to their expansion. As here discussed the IRCTC revenue breakup.

As the company's revenue and earnings have grown, and its robust balance sheet is supported by zero debt. The IRCTC is also continuously expanding the scope of their company and making a new technology development. 

We have tried our best to cover the all basics and important topics related to the IRCTC revenue breakup. So we hope we have provided satisfactory information in this blog for you.