IRCTC (Indian Railway Catering and Tourism Corporation)

Posted by Large Cap India on March 24th, 2020

Indian Railway Catering and Tourism Corporation Ltd. is a central public sector enterprise under Ministry of Railways, Government of India. IRCTC was incorporated on 27th September 1999.

The authorized capital of the company is 250 crores and paid up capital is 160 crores, fully subscribed by Ministry of Railways, Government of India. It’s registered and Corporate Office is situated at New Delhi.

It has been set up with the basic purpose of hiving off entire catering and tourism activity of the railways to the new Corporation so as to professionalise and upgrade these services with public-private participation.

Rail based Tourism in India will be the specific vehicle for achieving high growth in coordination with state agencies, tour operators, travel agents and the hospitality industry. Indian Railways span global volumes in hospitality and catering sectors with services provided to 13 million passengers every day.

The government which owned 100% in IRCTC sold 12.6% stake in the firm. After the IPO, government’s stake in the firm fell to 87.4%. IRCTC is engaged in internet ticketing, catering, packaged drinking water and travel and tourism. IRCTC has also diversified into other businesses, including non-railway catering and services such as e-catering, executive lounges and budget hotels.

IRCTC reported a sharp jump of 179 per cent in its net profit at Rs 205.80 crore for the third quarter ended December 31, 2019, helped by broad-based growth across all sectors. The cooperation had posted net profit of Rs 73.59 crore in the same quarter last year. On the sequential basis, profit grew 106.17 per cent from Rs 99.82 crore in September quarter of this fiscal.

Profit before tax was Rs 270.41 crore in December quarter of this fiscal compared to Rs 112.41 crore in the prior year.

The company has a good dividend track report and has consistently declared dividends for the last 5 years.

Mr. Mahendra Pratap Mall is the Chairman & Managing Director, Smt. Rajni Hasija is the Director for Tourism & Marketing, Mr. Sanjeeb Kumar is the Director of Finance and Ms. Suman Kalra is the Company Secretary.

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