You are here » Home » Companies » Company Overview » Indian Railway Catering & Tourism Corporation Ltd

Indian Railway Catering & Tourism Corporation Ltd.

BSE: 542830 Sector: Services
NSE: IRCTC ISIN Code: INE335Y01012
BSE 00:00 | 03 Apr 1083.05 51.55
(5.00%)
OPEN

1083.05

HIGH

1083.05

LOW

1083.05

NSE 00:00 | 03 Apr 1083.20 51.55
(5.00%)
OPEN

1083.20

HIGH

1083.20

LOW

1083.20

OPEN 1083.05
PREVIOUS CLOSE 1031.50
VOLUME 41065
52-Week high 1995.00
52-Week low 625.00
P/E 63.56
Mkt Cap.(Rs cr) 17,329
Buy Price 1083.05
Buy Qty 35214.00
Sell Price 1083.05
Sell Qty 18057.00
OPEN 1083.05
CLOSE 1031.50
VOLUME 41065
52-Week high 1995.00
52-Week low 625.00
P/E 63.56
Mkt Cap.(Rs cr) 17,329
Buy Price 1083.05
Buy Qty 35214.00
Sell Price 1083.05
Sell Qty 18057.00

Indian Railway Catering & Tourism Corporation Ltd. (IRCTC) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me great pleasure to welcome you all to the 20th Annual GeneralMeeting of your Company. Your Company has evolved over these two decades by completing 20glorious years since its incorporation in September 1999 to be recognized as the onlyPSU providing one window solution to all Hospitality Services. On behalf of the IRCTCBoard of Directors I thank you for joining us today. Your presence is indeed a truetestimony to your involvement with and support for the Company.

Your Company witnessed multi-dimensional growth and achieved path-breaking successduring the year under review. It is my proud privilege to once again present to you theoutstanding performance of your Company. The Company's financial statements for FY2018-19 along with the Directors' Auditors' report and C&AG report have beencirculated to you. With your permission I take them as read.

Financial Highlights

I am pleased to share the achievement of following milestones achieved by your companyin Fiscal 2019:

• Turnover of the Company increased to Rs. 1868 cr (approx.) in 2018-19 asagainst Rs. 1471(approx.) cr in 2017-18 with an increase of 26.9%.

• Profit before Tax (PBT) of the Company was registered at Rs. 476 cr (approx.) asagainst Rs. 339 cr (approx.) in previous year with an increase of 40.40%.

• Your Company issued bonus shares in the ratio of 3:1 i.e three shares for everyone share held to the existing shareholders subsequent to increase in the Authorisedshare capital from Rs. 50 cr to Rs. 250 cr.

• The Company recommended highest ever dividend of Rs. 122.37 cr. (includinginterim dividend of Rs. 60 cr already paid to Govt. of India) for FY 2018-19 in complianceof DIPAM's guidelines on capital restructuring.

• Your Company has received 'NIL' comments from the C& AG of Indiaduring the supplementary audit on audited financial statements of the Company for the yearended 31st March 2019.

Listing of shares/IPO

Subsequent to the announcement of the listing of shares of IRCTC by the Government ofIndia the process of disinvestment of approx. 12.50% of paid-up share capital by thePresident of India has commenced and the Company has filed its Draft Red HerringProspectus to SEBI on 21st August 2019.

MoU performance

The Company expects to secure an "Excellent' rating by Department of PublicEnterprises for the year 2018-19 on the basis of self evaluation done for the achievementsof the parameters committed.

I wish to take this opportunity to brief the members present about the segment-wiseperformance of the Company during 2018-19.

1. Catering & Hospitality:

As on 31st March 2019 IRCTC managed on-board catering services in around300 trains including Rajdhanis Shatabdis Durontos Tejas Gatiman and Vande Bharatexpress. The Company commissioned 16 Food Plazas and 49 Fast Food Units in FY 2019thereby managing 254 operational units in all throughout Indian Railways. Your Companyscaled new heights under E-catering and the average daily bookings for FY - 2018- 19 stoodat 11859 meals and is presently averaging at 17600 meals per day .

Your company also initiated the process of re-designing of pantry cars with modernequipments and draft design has been submitted to Rail Coach Factory Kapurthala.

By applying Artificial Intelligence (AI) in its operations your Company has allowedpassengers to live stream kitchens to see how food served on trains is made. Othermeasures in this direction included Menu on Rails app PoS (Point of Sale) machines etc.

Your Company's revenue from Catering increased to Rs. 1065 cr (approx.) against Rs. 729cr (approx.) in 2017-18.

2. Rail Neer:

The total production of Rail Neer at Nangloi Danapur Palur Ambernath AmethiParassala & Bilaspur plants was 21.50 crore bottles against total production of 20.20crore bottles in previous year.

In addition to present operational plants located at Delhi Patna Palur AmbernathAmethi Parassala and Bilaspur the Company set up new four plants at Hapur SanandNagpur and Bhopal in FY 2018-19. The Company plans to set up railneer plants at BhusawalJagi Road Jabalpur and Sankrail in FY 2019-20.

Till 31st March 2019 your Company has cumulatively installed 1956 WaterVending Machines. Out of 1194 stations of category of A1 A B and C a total of 619stations have been provided with WVMs covering around 97% of A-1 category stations.

The revenue from Railneer segment in 2018-19 was registered at Rs. 180 cr (approx.)asagainst Rs. 167 cr (approx.) in 2017-18.

3. Travel & Tourism:

Your Company today has become one of the leading travel and tourism companies in themarket catering to the needs of diverse tourist segments. Apart from rail tourism theCompany has diversified into various other tourism businesses for sustaining in theimmensely competitive tourism market viz. International and Domestic Air packages LandTour Packages Hotel bookings Customised and LTC tours etc. IRCTC has its exclusivetourism portal www.irctctourism.com for showcasing and booking of various tourismproducts in a single space.

In addition to Domestic and inbound and outbound tours this year your Company alsofocussed on Theme Based Tourist trains such as Shri Ramayana Yatra Tourist train UnityExpress Samanta Express and Temple Ram Sethu Express. Your Company is also making itspresence feel in the area of MICE and has organised various prestigious events during theyear including "Sameeksha Sanghosti 2019" Mission Raftaar 2022" forMinistry of Railways.

The revenue from Tourism segment in 2018-19 (including State Teerath segment) wasregistered at Rs. 453 cr (approx.) as against Rs. 399 cr. (approx.) in 2017-18.

4. Internet Ticketing

During 2018-19 IRCTC's e-ticketing service accounted for 70% of reserved tickets onIndian Railways booked online leaving behind several high profile e-commerce sitesworldwide. On an average more than 7.78 lakh tickets were sold daily through IRCTC'swebsite during 2018-19.

For Fiscal 19 Ministry of Railways reimbursed the annual expenditure of Rs. 88 croresincurred on the ticketing system on web site marketing operation and after sale servicesby IRCTC. Subsequent to the discontinuance of annual reimbursement in lieu of Servicecharge from FY 2019-20 onwards as advised by Ministry of Railways your Company hasproposed to restore the Service Charge as Convenience Fee. The restored Convenience Feewould be reduced to Rs. 15 for Non AC class and Rs. 30 for AC Class and shall be effectivefrom 1st September 2019. A communication in this regard has been made toMinistry of Railways.

The new initiatives taken by your company under this segment during the year includedE-ticketing Service for Paramilitary Forces National Security Guards (NSG) and CentralReserve Police Force (CRPF); Push Notifications; ASK Disha (Chat Bot) under ArtificialIntelligence etc.

The revenue from Internet Ticketing segment in 2018-19 was registered at Rs. 239 cr(approx.) as against Rs. 204 cr. (approx.) in 2017-18.

5. Corporate Governance and Corporate Social Responsibility

At IRCTC the goal of corporate governance is to ensure fairness for every stakeholder- our customers investors vendor-partners and the community. I am pleased to share thatyour Company received "Excellent" rating on compliance of Corporate Governancefor the year 2018-19 by Department of Public Enterprises.

As stipulated in the guidelines issued by Department of Public Enterprises a separatesection on Corporate Governance has been added to the Directors' Report and a Certificateregarding compliance of conditions of Corporate Governance has been obtained from aPracticing Company Secretary in addition to Secretarial audit.

The CSR Policy of the Company is aligned with the national focus on inclusive growthDPE Guidelines on CSR and the Companies Act 2013. IRCTC has undertaken a range of CSRactivities this year with special emphasis on Education and Healthcare. I am happy toreport that Company was able to spend the CSR Budget for year 2018-19 amounting to Rs.6.54 cr fully and there was no unspent amount.

6. Acknowledgements

Before I conclude I would like to extend my sincere thanks to you - the esteemedshareholders for your confidence and valuable support to me to the Board of Directorsand to the Company as a whole. I am confident that your continued support shall beavailable to us in the same way that you have stood by us over the years.

I am grateful to the agencies/ institutions from Government of India particularlyMinistry of Railways Ministry of Tourism Department of Public Enterprises and ZonalRailways Statutory Auditors Secretarial Auditor Cost Auditors Comptroller and AuditorGeneral of India all State Governments departments and our partners for their help andguidance.

I thank all my colleagues on the Board for helping me in creating good governanceculture across the organization and fulfilling the responsibilities of Board. I would liketo place on record the sincerity hard work commitment and dedication of the entire IRCTCteam. I seek your continued support in making the Company more sustainable and resilientto external challenges. I take this opportunity to thank all the other predecessors forbringing and providing invaluable support.

Thank you
Sd/-
(M.P. Mall)
Chairman & Managing Director
DIN : 02316235
Place: New Delhi
Dated: 28th August 2019

(Note: This does not purport to form proceedings of this Annual General Meeting)