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IRCTC slides after cancelling two Tejas trains

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Indian Railway Catering and Tourism Corporation (IRCTC) declined 1.15% to Rs 1365.70 after the company announced cancellation of two Tejas Express trains.

Earlier on 7 October 2020, IRCTC had announced its plan to restart the operations of Tejas trains. The company on Tuesday (17 November) announced that it has cancelled two Tejas Express trains due to low occupancy levels resulting from Covid-19 pandemic.

The company cancelled Lucknow-New Delhi Tejas Express from 23 November 2020 and Ahemdabad-Mumbai Tejas Express from 24 November 2020. IRCTC said the position will be reviewed after seeing the occupancy of Indian Railways on these sectors in future.

IRCTC posted a 67.3% decline in net profit to Rs 32.63 crore in Q2 September 2020 from Rs 99.82 crore in Q2 September 2019. The company's total revenue declined nearly 80% to Rs 108.72 crore in Q2 September 2020 from Rs 535.13 crore in Q2 September 2019.

The revenue from catering segment tumbled 93.5% to Rs 17.16 crore, revenue from internet ticketing segment declined 50.2% to Rs 58.29 crore, revenue from Rail Neer segment dropped 83.12% to 9.24 crore and revenue from tourism business slumped 92.4% to Rs 3.85 crore in Q2 September 2020 over Q2 September 2019.

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.

The Government of India holds 87.4% stake in IRCTC as of 30 September 2020.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, November 18 2020. 09:54 IST