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IRCTC Share to Turn Ex-Dividend Soon; Details Investors Should Know

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IRCTC Share to Turn Ex-Dividend Soon; Details Investors Should Know

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IRCTC Share Dividend: Indian Railway Catering & Tourism Corporation (IRCTC) has fixed the record date for the payment of the final dividend to its shareholders. So, IRCTC will turn ex-dividend on August 18 ahead of its record date for determining eligible shareholders for the final dividend of fiscal FY22. IRCTC has set its record date as August 19 for determining the members entitled to receive the final dividend for the financial year 2021-22.

IRCTC has announced to pay a final dividend of Rs 1.50 per share for the financial year 2021-22. IRCTC share dividend translated into 75 per cent of the paid-up equity share capital of the company. The face value of IRCTC shares is Rs 2. The dividend is subject to approval during the Annual General Meeting (AGM).

“The company has fixed Friday, August 19, 2022, as the ‘Record Date’ for determining entitlement of members to final dividend for the financial year ended March 31, 2022, if approved at the AGM,” IRCTC said in a regulatory filing.

Is Record Date and Dividend Payment Date Same?

The record date and payment date for dividends are different. On the record date, the company takes a note of the eligible shareholders for the dividend benefit. While the dividend payment date comes after the approval in a company’s annual general meeting. The ex-dividend date is the day before the record date. According to a regulatory filing by the company, the record date for the IRCTC share dividend is August 19. It means that IRCTC will pay dividends to its investors who have IRCTC share(s) in their Demat account on August 19. A dividend is one of the corporate actions.

Financials

IRCTC posted a 196 per cent surge in its net profit, at Rs 246 crore, for the quarter ending June 30, 2022-23 (Q1 FY23). It reported a net profit of Rs 82.5 crore in the year-ago period (Q1 FY22). The company’s revenue from operations zoomed 251 per cent to Rs 853 crore in the June quarter of this financial year from Rs 243 crore in Q1 FY22.

Tanusree Banerjee, co-head of research, Equitymaster, had told News18.com : “IRCTC has posted a good set of profit numbers amidst concerns about the impact of inflation on its operating cost. Its monopoly status and strong balance sheet continue to keep the stock in favour amongst investors. Having said that, some changes in the ticketing norms post-Covid are expected to impact revenue growth in the near term.”

Should you Invest in IRCTC Shares?

Jinesh Joshi – research analyst, Prabhudas Lilladher Pvt Ltd, said: “Revenues increased 250.3 per cent YoY to Rs8,526mn (PLe of Rs7,228mn). Revenues from Internet Ticketing/Catering/Rail Neer/Tourism (excluding State Teertha) increased 101.1 per cent YoY/520.9 per cent YoY/185.8 per cent YoY/1005.1 per cent YoY to Rs3,017mn (PLe Rs3,023mn)/ Rs3,522mn (PLe Rs2,836mn)/Rs836mn (PLe Rs600mn)/Rs819mn (PLe Rs519mn) respectively. All the segments were EBIT positive. Tourism achieved EBIT breakeven for the first time since pandemic at 1.1 per cent margin.”

“The stock currently trades at 54x our FY24E EPS estimate of Rs12.5. We currently have a HOLD rating on the stock with a TP of Rs 649,” he said in a note.

The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

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