IRCTC earns 41 per cent revenue from catering services

IRCTC’s catering service expansion to other ministries beyond Indian Railways will give a boost to overall revenue. The central government’s CPSE’s revenue from catering business has only increased over the years. The share of catering in overall revenue increased to 43.3 per cent in Q2 FY24 from 38.5 per cent in Q2 FY23. In the recently concluded September 2023 quarter, IRCTC earned Rs 431 crore from catering service out of total revenue of Rs 995 crore. In fact, in the September quarter, the PSU earned higher revenue from this particular segment than other segments like online ticketing, Rail neer and tourism. IRCTC’s revenue had increased more than four-fold to Rs 3,541 crore in FY23 from Rs 776 crore in FY22.

Catering service expansion will further boost IRCTC’s revenue. On Thursday, its shares made 52WH of Rs 792 on the BSE. The scrip has given year-to-date returns of 23 per cent.

IRCTC aims to become a premier brand of hospitality and catering in the country.

Shares of IRCTC jumped 2 per cent on Thursday, December 14, 2023 on news of taking its business beyond serving just Indian Railways. The hospitality and catering arm of Indian Railways mentioned in an exchange filing on the Bombay Stock Exchange (BSE) that it will extend catering services with other ministries and also with defense establsihments like  Border Security Force (BSF).

The only company in the country which is authorised to give online ticketing services is on business expansion mode. It plans to take its business beyond Railways. It is already managing catering and hospitality services of many government departments and also of many universities and judiciaries. It already runs catering units in Calcutta High Court, Department of Telecommunication in New Delhi, etc.

IRCTC is a Central Public Sector Enterprise under the Ministry of Railways, Government of India.