Higher ticket sales offset the massive fall in profit margin and boosted the net income of the rail ticketing monopoly Indian Railway Catering and Tourism Corporation (IRCTC) by 33.3 percent on year to Rs 308 crore for the June quarter.
But the Railways arm said on Tuesday that its profit margin for the quarter declined to 33 percent due to higher contribution of other segments such as catering, state teertha and tourism, which are low-margin segments in comparison with internet ticketing.
Revenue came in at Rs 1,120.15 crore, rising 11.8 percent, said the company, which offers online tickets and manages food services on trains.
For the quarter that ended in March 2024, IRCTC had reported consolidated sales of Rs 1154.8 crore and a net profit of Rs 284.18 crore.
The company's earnings before interest, tax, depreciation and amortization for the quarter came in at Rs 428.55 crore, up nearly 30 percent and the operating margin stood at 33 percent, down from 38.3 percent in the year-ago period.
The decline in profit margin was due to the higher contribution of other segments such as catering, state teertha and tourism, which are low-margin segments in comparison with internet ticketing. The contribution of internet ticketing to overall revenue decreased to 28.5 percent from 29 percent last year.
IRCTC is the only entity authorised by the government to provide online railway tickets, catering services to railways, and packaged drinking water at railway stations and trains.
The government owns 62.4 percent in the company, while foreign portfolio investors and domestic institutional investors each own 7.1 percent and 10.5 percent, respectively. Regular shareholders own 20 percent.