Shares of a railway company witnessed a 7 percent spike to reach an intraday high of ₹ 758.00 apiece on the National Stock Exchange (NSE) after the Ministry of Railways authorised it to cater on full-tariff coaches or trains. Its shares settled at ₹ 724.90 apiece.
“Party will book catering facilities in such special coaches / trains etc. through IRCTC only, except for booking of FTR trains along with Pantry Car,” IRCTC cited a directive from the Ministry of Railways for the announcement.
The orders will be applicable on all future bookings, including bookings where the journey is yet to commence. Parties who book Full Tariff Rate (FTR) trains including pantry coaches will be supplied with such pantries, which have flameless cooking facilities only. In case of non-availability of ICF pantry cars with flameless cooking facility, LHB rakes will be supplied for the train bookings, where pantry has been demanded, as per the filing.
The Full Tariff Rate (FTR) service of the Indian Railways allows passengers or organisations to make bookings for an entire train or some coaches for marriage, tour programmes and so on.
Online booking of an FTR train can be done from the FTR website and is allowed from all railway stations. Chartered coaches can be attached or detached only at those stations where trains stop for more than 10 minutes.
IRCTC’s catering business contributed nearly half of the company’s overall topline. In fact, it is the company’s largest business in terms of revenue.
With a market capitalization of ₹ 56,580 crores, IRCTC is a small-cap company. It has a high return on equity of 52.36 percent and an ideal debt-to-equity ratio of 0.03. It has a dividend yield of 0.78 percent.
The company’s promoters hold a 62.40 percent stake in it, followed by retail investors with 20.84 percent, other domestic institutions with 8.88 percent, foreign institutions with 6.99 percent and mutual funds with 0.89 percent.
Written by Simran Bafna
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