InvestorQ : Can you tell me about the latest revenue sharing that IRCTC has to with the Ministry of Railways?
sara Kunju made post

Can you tell me about the latest revenue sharing that IRCTC has to with the Ministry of Railways?

Answer
image
Mary Joseph answered.
2 months ago
Follow

IRCTC, the ticketing and catering arm of the Indian Railways, may have to shell out part of its revenues to the Ministry of Railways. This is likely to be a major headwind to contend with for the IRCTC stocks in the coming months. The Ministry of Railways has asked IRCTC to share 50% of the convenience fees charged to customers with the government. Till date, the entire 100% of the convenience fee charged by the government was retained by IRCTC.

The stock of IRCTC has been one of the big outperformers and had rallied more than 10-fold since listing 2 years back in late 2019. In recent times, the stock has corrected 30% from its peak price but still remains a multi-bagger. IRCTC is currently the only entity authorised to manage catering on trains and also handle the entire ticketing and tourism activity of Indian Railways. IRCTC recently split its shares, to make it more accessible to small investors.

0 Views