IRCTC: Govt withdraws decision to share convenience fee; shares recover 34%

ICICI Securities in a note said that, this would straight away reduce revenues and earnings before interest and tax (EBIT) by 14 per cent and 36 per cent respectively

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) clocked a sharp intra-day recovery after the Ministry of Railways withdrew the decision which said half the revenue that accrues to the company through the convenience fee on train tickets will go to the Ministry of Railways.

At 11:27 AM, the shares were trading at Rs 873 per share, down 4.5 per cent on the BSE, recovering 34.per cent from the day's low of Rs 650 (down 29 per cent).

The move, had it been implemented, would have straight away reduced revenues and earnings before interest and tax (EBIT)