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IRCTC rises on getting nod to operate Ahmedabad-Mumbai Tejas Express

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Capital Market
Last Updated : Jan 14 2020 | 10:04 AM IST

The Ministry of Railways has given its approval to Indian Railway Catering and Tourism Corporation (IRCTC) to operate Ahmedabad-Mumbai Central Tejas Express for six days a week.

This train will have its inaugural run on 17 January 2020 and will start its commercial run from 19 January 2020, IRCTC said in a statement after trading hours on Monday, 13 January 2020.

Meanwhile, the media reported that IRCTC may soon be replaced as caterers to the Parliament canteen. Private brands like Bikanerwala and Haldiram, in addition to the government-run ITDC, are among the key contenders considered to replace IRCTC.

IRCTC has faced growing concerns over the quality of its fare served in Parliament and subsidies offered, triggering a demand for fresh caterers for the complex, reports added.

Shares of IRCTC were up 0.7% at Rs 945.50. The stock has gained 6.18% in last one month as compared to a 1.99% rise in benchmark Nifty 50 index.

IRCTC's net profit rose 14.01% to Rs 172.15 crore on 3.77% rise in net sales to Rs 972.61 crore in H1FY2020 over H1FY2019.

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Shares of IRCTC listed on the bourses on 14 October 2019. The stock debuted at Rs 644, a premium of 101.25% to the initial public offer (IPO) price of Rs 320.

IRCTC, a Mini Ratna public sector enterprise under the administrative control of Ministry of Railways, is the sole entity authorized by Indian Railways (IR) to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. IRCTC operates in four business segments, namely, internet ticketing, catering, packaged drinking water and travel & tourism.

The Government of India holds 87.40% stake in the company as on 30 September 2019.

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First Published: Jan 14 2020 | 9:31 AM IST

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