These Railway PSU stocks, one which deals in the online railway tickets, catering services, and packaged drinking water, and the other which deals in financing the acquisition/creation of assets which are then leased out to the Indian Railways, are in focus after the government upgraded status to Navratna.
Share Price Movement
In Monday’s trading session, IRCTC‘s share price was up by 1.36 percent and touched a day’s high of Rs. 680.20. The stock reiterated from the day’s high and closed at Rs. 676.05, which is 0.75 percent higher than the previous close of Rs. 671.05 per share.
IRFC’s share price was up by 3.06 percent and touched a day’s high of Rs. 115.85. The stock reiterated from the day’s high and closed at Rs. 111.15, which is 1.11 percent lower than the previous close of Rs. 112.40 per share.
What Happened
Both PSU company stocks were in focus with Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC), which received approval from the Government for the upgradation of status to Navratna CPSE (Central Public Sector Enterprise).
IRCTC becomes the 25th Navratna and the latter IRFC became the 26th as per the Department of Public Enterprises, which is a nodal department for all CPSE and formulates policies.
Both IRCTC and IRFC were in Miniratna status, and certain benefits can be used as they are now upgraded. The requirements for the Navratna status are
The company must have been a miniratna category-1 for at least three years, a consistent track record for profitability, net worth, and turnover, positive net worth and net profit for the previous three years, a global presence or international operations, the ability to compete in the global market, good corporate governance and compliance with regulatory requirements, and a satisfactory DPE rating.
Further, after receiving Navratna status, the firms can invest up to Rs 1,000 crore, or 15 percent of their net value, in a single project. The other alternative is 30 percent of their net worth, which should not exceed Rs. 1,000 crore.
Financials
IRCTC reported an operational revenue of Rs. 1,225 crore in Q3FY25 compared to Rs. 1,118 in Q3FY24. During the same period, the company’s net profit was Rs. 341 crore, an increase from Rs. 300 crore in Q3FY24.
For IRFC, the company reported a net interest income of Rs. 1,668.36 crore in Q3FY25 compared to Rs. 1,632.28 crore in Q3FY24. During the same period, the company’s net profit was Rs. 1,631 crore, an increase from Rs. 1,599 crore in Q3FY24.
Company Profile
IRCTC, a public sector enterprise, provides ticketing, catering, and tourism services for Indian Railways. Established in 1999, it operates under the Ministry of Railways, offering services like e-ticketing and packaged drinking water under “Rail Neer.”
IRFC, established in 1986, is the dedicated financing arm of Indian Railways. It mobilizes funds from domestic and overseas markets to finance rolling stock and infrastructure assets, playing a crucial role in Indian Railways’ expansion and modernization efforts.
Written by Santhosh S
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