IRCTC Analyst Meet Update - Conversion Delta In Ticketing At Play: Prabhudas Lilladher
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Prabhudas Lilladher Report
We increase our earnings per share estimates of Indian Railway Catering and Tourism Corporation Ltd. by 5.9%/5.7% for FY22E/FY23E respectively as conversion of certain unreserved coaches to reserved category can result in volume delta of ~35%.
Except for the first 10 days of January, non-suburban passenger reservation system traffic registered growth in every subsequent 10-day bucket period, indicating that conversion factor is driving traffic growth in Q4 FY21.
As a result, we have increased our e-ticketing volume estimates to 369.7 million/401.7 million for FY22E/FY23E respectively; a ~13% odd upgrade for both the years.
On catering front, management highlighted that cancelled contracts were already in abeyance with no change in catering policy so far.
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