Indian Railways Catering and Tourism Corporation (IRCTC) announced that it would now be sharing revenues acquired from convenience fees for bookings made on its platform in a 50:50 ratio with the Ministry of Railways. The company informed the Bombay Stock Exchange in a regulatory filing on Thursday.
The revenue-sharing arrangement would be enforced from November 1.
"ln compliance with the Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,2015, it is to be informed that Ministry of Railways vide above-referred letter has conveyed its decision to share the revenue earned from convenience fee collected by IRCTC in the ratio of 50: 50 w.e.f 1't November 2021," IRCTC stated in the filing.
IRCTC is the sole entity authorised by the Indian Railways to facilitate the booking of tickets, provide catering services and packaged drinking water in trains and railways stations.
The company is scheduled to announce its quarterly results on November 1. In the previous quarter, it had reported a 23 per cent fall in net profit on a year-over-year basis at Rs 103.8 crore. Additionally, revenue had declined 41.2 per cent on a year-over-year basis at Rs 338.8 crore.
This was primarily because travel remain muted owing to lockdowns meant to curb transmission of the COVID-19 virus.
Railway ticketing business grew 9.5 per cent on a year-over-year basis to Rs 212 crore in the March-end quarter.