India’s tour and travel-related services sector is a significant contributor to the economy, generating over $234 billion in 2022. The sector employs millions and is expected to grow at 6.9% annually. With increasing domestic and international tourism, India remains a key global travel destination.
With a market capitalization of Rs 77,200.00 crore, the shares of Indian Railway Catering and Tourism Corporation Ltd were trading at Rs 965.00 per share, decreasing around 1 percent as compared to the previous closing price of Rs 973.85 apiece.
Matter Description:-
The company hit its 52-week or all-time high in May 2024 at Rs. 1,148.30 and, comparing the same with the current stock price prevailing in the market, there is a discount of approximately 16 percent.
Railway Minister comment:-
On Wednesday, Union Minister Ashwini Vaishnaw announced that the Railway Ministry has allocated Rs 1,112.57 crores to install the automatic train protection (ATP) system, Kavach, for the financial year 2024-25.
Moreover, Kavach is an indigenously developed ATP system that is highly technology-intensive and requires the highest level of safety certification. Hindustan Times reported.
Financial outlook:-
Looking into Indian Railway Catering and Tourism Corporation Ltd, the company’s revenue increased by 19 percent, from Rs 965 crore in Q4FY23 to Rs 1,155 crore in Q4FY24. During the same period, net profit grew by 2 percent, from Rs 279 crore to Rs 284 crore.
Monopoly:-
Indian Railway Catering and Tourism Corporation Ltd (IRCTC) holds a near-monopoly in the Indian railway sector, controlling 72.75% of online ticket bookings, and leading in catering and hospitality services. Backed by the government, IRCTC shows strong financial growth with substantial profit margins, minimal debt, and high market capitalization.
Manufacturing facility:-
The company operates approximately 16 Rail Neer plants, with four in-house manufacturing units and 12 under the public-private partnership (PPP) model. Its rail tour packages offer confirmed berths to passengers and all-inclusive services, such as road transportation, accommodation, sightseeing, and accidental insurance, among others.
Company profile:-
Indian Railway Food and Tourism Corporation Limited offers online railway tickets, food services, and packaged drinking water at stations and trains across India. The company’s sectors include Catering, Rail Neer, Internet Ticketing, Tourism, and State Teertha.
Written by:- Abhishek Singh
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