IRCTC Shares Surge 2.65% Amidst New Tender Approval and Strong Financial Performance

IRCTC Shares Surge 2.65% Amidst New Tender Approval and Strong Financial Performance

VoM News Desk | November 21, 2023 | 04:38 PM IST | Breaking News | Follow on Google News

IRCTC Shares Surge 2.65% Amidst New Tender Approval and Strong Financial Performance

IRCTC Shares Surge 2.65% Amidst New Tender Approval and Strong Financial Performance

Indian Railway Catering and Tourism Corporation (IRCTC) witnessed a notable surge in its shares, with a 2.65% increase, reaching ₹719.90 apiece. This rise came following the approval from the Ministry of Railways for IRCTC to engage in long-term tenders of up to 7 years for clustering of trains.

Change in Tender Policy

Despite the positive news, IRCTC was advised by the Ministry of Railways not to proceed with the initially proposed long-term tenders of 5+5 years for train catering services. This decision aligns with the smooth implementation of the YSA policy for providing passenger services on trains.

IRCTC’s Expanding Services

IRCTC, the sole authorized entity for online railway ticketing, catering, and packaged drinking water on trains and stations in India, has diversified its services to include luxury train tours, hotel bookings, and holiday packages.

Stock Performance and Market Debut

IRCTC made a strong market debut on October 14, 2019, and has been trading on an ex-split basis since October 2021. The stock has delivered impressive returns, with a 156% increase in the last three years and a staggering 1006% rise over the last five years.

Financial Highlights of Q2FY24

For Q2FY24, IRCTC reported a 30% increase in standalone net profit, amounting to ₹294 crore. The revenue from operations grew by 23.5% YoY to ₹995.3 crore. The catering segment saw a 29% revenue increase, while the internet ticketing segment grew by 9%.

Shareholding Pattern

As of Q2FY24, the Indian government holds a 62.4% stake in IRCTC, with foreign portfolio investors and domestic institutional investors owning 7.1% and 10.5%, respectively. Regular shareholders own 20% of the company.

Current Trading Status

At 01:00 PM, IRCTC shares were trading with a gain of 1.04% at ₹708.65 apiece, reflecting ongoing investor interest and confidence in the company’s growth potential.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.