InvestorQ : Why did the stock of IRCTC crack so sharply on 29-October and why did it also bounce back sharply?
Rashi Mehra made post

Why did the stock of IRCTC crack so sharply on 29-October and why did it also bounce back sharply?

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Archita Jajjoo answered.
2 months ago
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Shares of IRCTC clocked a sharp intra-day recovery on Friday after the Railway Board in its high level meeting with the IRCTC top brass decided to withdraw the decision to claim 50% of revenues earned by IRCTC from convenience fees. The stock dipped all the way to Rs.650 on the BSE but then bounced back to the Rs.870 levels. The move would have cut revenues and EBIT of IRCTC by 14% and 36% respectively.

According to IRCTC’s annual report, it had earned a sum of Rs.299 crore via convenience fee in FY21. In the current year, they have already earned over Rs.260 crore in the first 6 months.

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