Indian Railways Catering and Tourism Corporation (IRCTC) will now share revenues acquired from convenience fees for bookings made on its platform in a 50:50 ratio with the Ministry of Railways, it said in a regulatory filing on October 28.
Among other details, IRCTC informed that the revenue-sharing arrangement would be enforced from November 1.
ALSO READ: IRCTC falls 32% from record high: Is it time to press panic button?
"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.
Indian Railways has authorised IRCTC to facilitate the booking of tickets, provide catering services and packaged drinking water in trains and railways stations.
The Central Public Sector Enterprise (CPSE), under Ministry of Railways, is scheduled to announce its quarterly results for second quarter on November 1. IRCTC reported a 23 per cent decline in net profit on a year-over-year basis at Rs 103.8 crore in the previous quarter. On a year-over-year basis, the revenue had declined 41.2 per cent at Rs 338.8 crore. In the March-end quarter, railway ticketing business grew 9.5 per cent on a year-over-year basis to Rs 212 crore.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
