IRCTC rises after food fare hike in select trains

IRCTC rose 1.98% to Rs 924.85 after the company after the company decided to hike catering service fares on the Shatabadi, Rajdhani and Duronto class of trains.

The catering charges would also be levied on the passengers 120 days from the announcement of the news. IRCTC made this announcement after market hours yesterday, 14 November 2019.

A circular issued by the Director (tourism and catering) of the Railway Board mentioned that the cost of prepaid food items on the said class of trains will go up significantly. For example, as per the revised rates, a cup of tea which used to cost Rs 10, will now cost Rs 20 in 2nd AC and Rs 15 in the sleeper class. Similarly, lunch or dinner in the sleeper class of Duronto will now cost Rs 120 instead of the earlier Rs 80.

The revised tariff and menu shall be available in the ticket system after 15 days. It will come into effect after two months from the date of issue (14 November) of the circular.

Shares of IRCTC fell 2.78% in the past two trading sessions to settle at Rs 906.85 yesterday, 14 November 2019, from its close of Rs 932.80 on 11 November 2019.

Meanwhile, S&P BSE Sensex was up 203.21 points or 0.50% at 40,489.69.

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.

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.

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

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