IRCTC will lose a chunk of its revenue to the Indian government starting next month
- The government has asked railway company IRCTC to share 50% of its revenue from convenience fees.
- The development may impact the company’s revenues going ahead.
- Shares of the company ended nearly 12% higher today as the stock got split in the ratio of 1:5.
The company will start sharing half of the convenience fees with the government from November 2021.
The development might impact the company’s revenue coming from the e-ticketing service charge segment. In FY21, IRCTC earned ₹299 crore from this segment, which is almost 40% of its revenue from operations of ₹783 crore.
AdvertisementSo far, IRCTC did not share revenues from this segment with the Indian government.
|Convenience fees||Charges per ticket|
|AC class||₹30 plus goods and services tax (GST) per ticket`|
|Non AC class||₹15 plus GST per ticket|
Shares of the company ended nearly 12% higher on October 28 as the stock got split in the ratio of 1:5.
SEE ALSO: EaseMyTrip makes its first acquisition in 13 years to strengthen its hotel offerings
Adani Ports share price tumbles due to poor results, Myanmar exit
Popular on BI
- J&K has highest share of 5 per cent budget allocation in health sector across country: LG
- RBI expected to hold rates on uncertainty over new COVID-19 variant
- Best 128GB pen drive in India
- Best 256GB flash drive in India
- Delhi reports first case of the new Omicron COVID-19 strain