Indian Railways Catering and Tourism Corporation (IRCTC) will share 50 per cent of the revenue from the convenience fee with it, the company said today in an exchange filing.
Among other details, IRCTC informed that the revenue-sharing arrangement would be enforced from November 1.
“ln compliance with the Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,2015, it is to be informed that Ministry of Railways vide above-referred letter has conveyed its decision to share the revenue earned from convenience fee collected by IRCTC in the ratio of 50: 50 w.e.f 1’t November 2021,” IRCTC stated in the filing.
Analysts believe that this spark a near 50 per cent cut in the earnings of IRCTC since the majority of its revenues come from internet ticketing services.
Indian Railways as authorised IRCTC to facilitate the booking of tickets, provide catering services and packaged drinking water in trains and railways stations.
The Central Public Sector Enterprise (CPSE), under Ministry of Railways, is scheduled to announce its quarterly results for second quarter on November 1.
IRCTC reported a 23 per cent decline in net profit on a year-over-year basis at Rs 103.8 crore in the previous quarter. On a year-over-year basis, the revenue had declined 41.2 per cent at Rs 338.8 crore. In the March-end quarter, railway ticketing business grew 9.5 per cent on a year-over-year basis to Rs 212 crore.
Shares of IRCTC ended nearly 12 per cent higher at Rs. 923 on the National Stock Exchange.
