Indian Railways Catering and Tourism Corporation (IRCTC) fell 17.25% to Rs 756.10 after the company said that it will share revenues earned from convenience fees for bookings made on its platform in a 50:50 ratio with the Ministry of Railways.
The Ministry of Railways has conveyed its decision to share the revenue earned from convenience fee collected by IRCTC in the ratio of 50:50 with effect from 1 November 2021, IRCTC said in a statement to the exchanges.
So far, the entire convenience fee went to IRCTC, as the ticketing system is run by it, while the rail fare went into the account of Indian Railways. The convenience fee is not part of the rail fare. It is for the service offered by IRCTC of booking a ticket on the web.
Meanwhile, the media reported that the company's board will discuss convenience fee issue today. The company will reportedly ask the government to reconsider the decision.
Shares of IRCTC spurted 10.65% to settle at Rs 913.75 on Thursday as the stock turned ex-split.
IRCTC has fixed 29 October 2021 as the record date for the proposed 5-for-1 stock split.
The company's board will meet on 1 November 2021 to consider Q2 results.
IRCTC posted a net profit of Rs 82.52 crore in Q1 FY22 compared with net loss of Rs 24.6 crore in Q1 FY21. Revenue from operation jumped 85.3% year-on-year to Rs 243.36 in Q1 FY22 over Q1 FY21.
Last quarter, the internet ticketing segment accounted for almost 62% of the revenues. The company's revenue from internet ticketing business soared 325% YoY to Rs 149.97 crore in Q1 FY22.
The revenue from Rail Neer segment surged 800% to Rs 29.26 crore, and revenue from tourism business jumped 151% to Rs 7.41 crore in Q1 FY22 over Q1 FY21. The company's revenue from catering segment slumped nearly 37% to Rs 56.71 crore.
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. The Government of India held 67.4% stake in the company.
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