IRCTC share price jumps 3% after AGM, ₹2 per share final dividend. Should you buy?
₹684.10 apiece levels on NSE, logging to the tune of 3 per cent intraday rise during Monday deals. During the IRCTC AGM, the Indian Railways' PSU informed that the company has registered robust financial performance and announced final dividend of ₹2 per share to its shareholders, who would hold the scrip on record date.
Highlighting the post-pandemic scenario and company's financials, Seema Kumar, Chairperson & Managing Director at IRCTC said, “India's service sector witnessed swift rebound in FY22 driven by growth in the contact intensive services sub-sector, which bore the maximum burden of the pandemic and that this subsector completely recovered from the pre-pandemic level in Q2 of FY23, driven by the release of pent-up demand, ease of mobility restriction, and near-universal vaccination coverage." During the FY 2022-23 IRCTC has registered a strong financial performance with a total income of ₹3,661.90 crores which increased from ₹1954.48 crores in 2021-22. EBITDA stood at ₹1,396.65 crores over ₹949.42 crores in the previous fiscal.
The company’s PAT grew to ₹1,005.88 crores from ₹659.55 crores in FY 2021-22. Both EBITDA and PAT ended up at healthy margins of 38.14 per cent and 27.47 per cent, respectively.
Considering the excellent performance of the Company, during the AGM the share holders have approved a final dividend of ₹2.00/- per share ( ₹160 Crores) for FY 2022-23. This is in addition to the interim dividend of ₹3.50/- per share ( ₹280 Crores) declared in February 2023 and paid to shareholders in March 2023.
With this, the total dividend declared by the Company for FY23, is ₹5.50/- per equity share of the face value of ₹2/- each. On IRCTC share price target, Sumeet Bagadia, Executive Director at Choice
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