IRCTC slips on terminating mobile catering contracts

Indian Railway Catering and Tourism Corporation (IRCTC) fell 1.62% to Rs 1907.50 after the company informed about the termination of all existing contracts of mobile catering.

In a regulatory filing made after market hours on Monday (1 March 2021), the company said that Ministry of Railways, in compliance of orders of High Court of Judicature at Madras, has directed IRCTC to terminate all existing contracts of mobile catering (currently kept in abeyance) involving scope of work of providing cooked food to passengers prepared from base kitchens as per the existing terms and conditions.

"The impact of the above directive is being assessed and will be informed to exchanges in due course, the company further said.

The counter also witnessed some bit of profit taking. The stock gained 19.6% in the past five sessions to end at Rs 1,939 yesterday, from its recent closing low of Rs 1,620.70 recorded on 22 February 2021.

The scrip gained 2.58% in early trade today to hit an intraday high of Rs 1,989, which is also a 52-week high for the counter.

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 holds 67.40% stake in IRCTC as of 31 December 2020.

The company's standalone net profit tanked 62.1% to Rs 78.09 crore on 68.7% fall in net sales to Rs 224.37 crore in Q3 December 2020 over Q3 December 2019.

Powered by Capital Market - Live News