You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

IRCTC to share 50% proceeds of service charge on e-ticketing with Indian Railways

Capital Market 

Indian Railways Catering and Tourism Corporation (IRCTC) announced that it will share revenues earned from convenience fees for bookings made on its platform in a 50:50 ratio with the Ministry of Railways.

The Ministry of Railways has conveyed its decision to share the revenue earned from convenience fee collected by IRCTC in the ratio of 50:50 with effect from 1 November 2021, IRCTC said in a statement to the exchanges.

So far, the entire convenience fee went to IRCTC, as the ticketing system is run by it, while the rail fare went into the account of Indian Railways. The convenience fee is not part of the rail fare. It is for the service offered by IRCTC of booking a ticket on the web.

Shares of IRCTC spurted 10.65% to settle at Rs 913.75 today as the stock turned ex-split.

IRCTC has fixed 29 October 2021 as the record date for the proposed 5-for-1 stock split.

The company's board will meet on 1 November 2021 to consider Q2 results.

IRCTC posted a net profit of Rs 82.52 crore in Q1 FY22 compared with net loss of Rs 24.6 crore in Q1 FY21. Revenue from operation jumped 85.3% year-on-year to Rs 243.36 in Q1 FY22 over Q1 FY21.

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 held 67.4% stake in the company.

Powered by Capital Market - Live News

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

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 28 2021. 17:18 IST