Shares of Indian Railway Catering and Tourism Corporation Ltd (IRCTC) fell more than 2% in early trading after the company announced its earnings for the quarter ended March 2022. However, it posted profits and fell after two consecutive days of gains.
The share had gained 6.41% or Rs 42 in the previous two sessions. The stock which closed at Rs 652.95 on May 27 ended at Rs 694.85 on May 30.
Ahead of yesterday’s earnings, the stock soared 9.23% to Rs 712.6 on BSE.
In today’s session, IRCTC shares slipped 2.49% to Rs 677.75 from the previous close of Rs 694.85 on BSE. The company’s market capitalization fell to Rs 55,276 crore on BSE.
At 10:56 a.m., the stock was trading down 0.35% at Rs 692.40 on BSE. The stock reached a 52-week high at 1,278.60 rupees on October 19, 2021 and a 52-week low at 377.4 rupees on June 1, 2021.
IRCTC stock is trading above the 5-day and 20-day moving averages, but below the 50-day, 100-day and 200-day moving averages.
IRCTC Q4 results: net profit up 106% to Rs 214 cr, final dividend declared
The stock has lost 16.68% since the start of this year and has risen 82.22% in one year. A total of 2.30 lakh shares changed hands, representing a turnover of Rs 15.92 crore on BSE.
AR Ramachandran, Co-Founder and Trainer, Tips2Trades said, “Despite strong Q4FY22 earnings versus last year, where revenue and earnings exceeded estimates, the market appears to have already priced in the strong results Technically, until the IRCTC stock closes above Rs 711, the trend could remain sideways or even negative. Strong support can be seen at Rs 662.”
The IRCTC reported a 105.7% increase in net profit to Rs 213.78 crore in the fourth quarter. The catering and tourism arm of Indian Railways reported a net profit of Rs 103.78 crore in the prior year period, mainly due to the woes of COVID-19.
Operating revenue soared by 104% to Rs 691 crore in the March quarter from Rs 339 crore in the corresponding quarter last fiscal year.
Total revenue more than doubled to Rs 716.79 crore in Q4FY22 from Rs 358.25 crore in Q4FY21.
The board has also recommended a final dividend of Rs 1.50 per share with a par value of Rs 2 each for the financial year 2021-2022, subject to shareholder approval at the next Annual General Meeting (AGM) . The final dividend is in addition to the interim dividend of Rs 2 per share, the company said.