Revenue and Profitability Trends
Over the three-year period ending March 2025, I R C T C's net sales have shown a robust upward trend, increasing from ₹3,541.47 crores in March 2023 to ₹4,674.77 crores in March 2025. This represents a compound growth rate of approximately 14.5% annually, reflecting the company's expanding market presence and operational scale. Total operating income mirrored this growth, as other operating income remained nil throughout the period.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income rose steadily from ₹1,276.22 crores in March 2023 to ₹1,549.78 crores in March 2025. Including other income, operating profit increased from ₹1,396.65 crores to ₹1,778.87 crores over the same timeframe. Despite a slight dip in operating profit margin from 36.04% in 2023 to 33.15% in 2025, the company maintained strong profitability levels.
Profit before tax (PBT) advanced from ₹1,354.01 crores in March 2023 to ₹1,757.29 crores in March 2025, while profit after tax (PAT) grew from ₹1,005.88 crores to ₹1,314.90 crores. The PAT margin remained relatively stable, fluctuating marginally around 28%, indicating effective cost management and operational efficiency. Earnings per share (EPS) also improved from ₹12.57 to ₹16.44, signalling enhanced shareholder value.
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Cost Structure and Expense Analysis
The company’s total expenditure excluding depreciation rose from ₹2,265.25 crores in March 2023 to ₹3,124.99 crores in March 2025, reflecting the scale of operations. Notably, raw material costs decreased marginally from ₹75.67 crores to ₹66.45 crores, while purchase of finished goods increased significantly from ₹120.69 crores to ₹208.87 crores, indicating a shift in procurement strategy or product mix.
Employee costs rose steadily from ₹245.52 crores to ₹315.25 crores, consistent with business expansion and possibly wage inflation. Manufacturing expenses also increased from ₹146.73 crores to ₹194 crores, while other expenses surged from ₹1,677.96 crores to ₹2,340.49 crores, underscoring rising operational costs. Despite these increases, the company maintained a healthy gross profit margin, which stood at 38.72% in March 2025, up from 36.46% the previous year.
Balance Sheet Strength and Asset Management
I R C T C’s shareholder funds have grown from ₹2,478.40 crores in March 2023 to ₹3,663.36 crores in March 2025, supported by rising reserves which increased from ₹2,318.40 crores to ₹3,503.36 crores. The company remains debt-free, with no long-term or short-term borrowings reported during this period, highlighting a conservative capital structure.
Total liabilities increased from ₹4,958.21 crores to ₹6,566.78 crores, primarily driven by current liabilities rising from ₹2,391.37 crores to ₹2,802.95 crores and other long-term liabilities. On the asset side, total assets expanded from ₹4,958.21 crores to ₹6,566.78 crores, with net block assets nearly tripling from ₹226.42 crores to ₹670.46 crores, reflecting significant capital expenditure and asset base enhancement.
Cash Flow and Liquidity Position
Operating cash flow remained positive and relatively stable, with ₹811 crores in March 2023 and ₹833 crores in March 2025, despite fluctuations in working capital changes. Investing activities consistently showed cash outflows, indicative of ongoing investments in fixed assets and business expansion. Financing activities reflected net outflows, possibly due to dividend payments or other financing decisions.
Closing cash and cash equivalents decreased from ₹428 crores in March 2023 to ₹377 crores in March 2025, after peaking at ₹706 crores in March 2024. This suggests a balanced approach to liquidity management, maintaining sufficient cash reserves while deploying capital for growth.
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Summary and Investor Takeaways
In summary, I R C T C has exhibited a strong and consistent financial performance over the last three years. The company’s revenue growth, stable profit margins, and increasing earnings per share reflect operational resilience and effective management. Its debt-free status and growing shareholder equity underscore a solid financial foundation, while steady cash flows support ongoing investments and liquidity.
Investors may find the company’s historical performance encouraging, particularly given its ability to sustain profitability amid rising expenses and capital investments. However, the slight compression in operating margins and fluctuations in cash reserves warrant monitoring. Overall, I R C T C’s track record suggests a well-managed enterprise with potential for continued growth in the travel and tourism sector.
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