About Co -
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a “Mini Ratna (Category-I)” Central Public Sector Enterprise under Ministry of Railways, Government of India. IRCTC was incorporated on 27th September, 1999 as an extended arm of the Indian Railways to
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a “Mini Ratna (Category-I)” Central Public Sector Enterprise under Ministry of Railways, Government of India. IRCTC was incorporated on 27th September, 1999 as an extended arm of the Indian Railways to
upgrade, professionalize and manage the catering & hospitality services at stations, on trains & other locations and to promote domestic & international tourism.
Q3 Numbers -
In Q3 fy22, Consolidated rev stood at Rs 557cr⬆️127% (YoY)
Net profit at Rs 209cr ⬆️167% (YoY)
In Q3 fy22, Consolidated rev stood at Rs 557cr⬆️127% (YoY)
Net profit at Rs 209cr ⬆️167% (YoY)
Business Overview :-
▪️ INTERNET TICKETING -
The co offers ticket booking services through website and mobile application. They also offers value added services like e-wallet & loyalty scheme through a co-branded credit card.
▪️ INTERNET TICKETING -
The co offers ticket booking services through website and mobile application. They also offers value added services like e-wallet & loyalty scheme through a co-branded credit card.
▪️ CATERING -
The co offers mobile catering services on-board 417 trains through pantry or base kitchens. They provide static catering services at jan ahars, cell kitchens, food courts & refreshment rooms at railway stations. They also e-catering services allowing passengers
The co offers mobile catering services on-board 417 trains through pantry or base kitchens. They provide static catering services at jan ahars, cell kitchens, food courts & refreshment rooms at railway stations. They also e-catering services allowing passengers
to order food from partner restaurants and food outlet.
▪️ PACKAGED DRINKING WATER -
The co has 14 operational plants across India with capacity of 1.4mn bottles per day. They operate 1,926 water vending machines at 685 stations.
▪️ PACKAGED DRINKING WATER -
The co has 14 operational plants across India with capacity of 1.4mn bottles per day. They operate 1,926 water vending machines at 685 stations.
▪️ TRAVEL & TOURISM -
The co offers domestic & international tour packages, hotel bookings, car rentals, air ticketing, educational tours, charter train packages & cruise packages. They operates special tourist trains like Buddhist Circuit, Bharat Darshan & luxury trains like
The co offers domestic & international tour packages, hotel bookings, car rentals, air ticketing, educational tours, charter train packages & cruise packages. They operates special tourist trains like Buddhist Circuit, Bharat Darshan & luxury trains like
Maharaja Express & Golden Chariot.
Monopoly Status -
▪️ IRCTC is the only entity authorized by the Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.
▪️ IRCTC is the only entity authorized by the Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India.
▪️ IRCTC is the only entity authorized to provide online ticketing for railway passengers.
▪️ IRCTC has been assigned the responsibility for catering services across the entirety of Indian Railways both mobile & static on a revenue sharing model. They started e-catering which allows passengers willing to pay higher prices for variety in food options to order food items
from partner restaurants, which pay IRCTC a 12% commission on order value.
▪️ IRCTC is the only entity authorized by Indian Railways to provide packaged drinking water at railway stations & trains in India.
Growth Drivers :-
▪️ Internet Ticketing -
E-booking penetration is projected to reach 81-83% by FY 24 due to factors such as increasing internet penetration, convenience, low cost of data & smartphones, etc.
Reserved tickets forms ~17% of all passengers travelled and only
▪️ Internet Ticketing -
E-booking penetration is projected to reach 81-83% by FY 24 due to factors such as increasing internet penetration, convenience, low cost of data & smartphones, etc.
Reserved tickets forms ~17% of all passengers travelled and only
2% of passengers travel through higher class coaches. Improvement in per capita income of our travelers will lead up-scaling resulting in better growth & realizations.
▪️ Catering & Hospitality -
Increasing demand for hygienic eating options for train passengers coupled with affordable and hygienic catering options offered by IRCTC.
Continuing momentum in E-catering services which has grown at 70% CAGR over the last three years
Increasing demand for hygienic eating options for train passengers coupled with affordable and hygienic catering options offered by IRCTC.
Continuing momentum in E-catering services which has grown at 70% CAGR over the last three years
▪️ Packaged drinking water -
Rail Neer is an extremely affordable bottled water brand served to train passengers while ensuring highest quality of cleanliness & purity.
Post commencement of capacity enhancement exercise currently being undertaken, IRCTC can increase its share
Rail Neer is an extremely affordable bottled water brand served to train passengers while ensuring highest quality of cleanliness & purity.
Post commencement of capacity enhancement exercise currently being undertaken, IRCTC can increase its share
from ~45% to potentially reach 80%.
Surplus production if available can be used to serve customers outside the railway network.
Surplus production if available can be used to serve customers outside the railway network.
Travel & tourism -
IRCTC can successfully leverage the trust reposed by our customer base and well established network to effectively tap the huge tourism opportunity within and outside India.
IRCTC can successfully leverage the trust reposed by our customer base and well established network to effectively tap the huge tourism opportunity within and outside India.
Private trains -
Leverage lucrative private train operations allowed by Ministry of Railways to offer end to end travel services at market determined pricing models
IRCTC is the only private train operator with experience of operating 3 trains in a asset light lease model.
Leverage lucrative private train operations allowed by Ministry of Railways to offer end to end travel services at market determined pricing models
IRCTC is the only private train operator with experience of operating 3 trains in a asset light lease model.
Key Risk -
Business and revenues are substantially dependent on Indian Railways. Any adverse change in the policy of the Ministry of Railways may adversely affect profitability.
Does not have the ability to pass on any increase in raw ingredient costs due to price regulation
Business and revenues are substantially dependent on Indian Railways. Any adverse change in the policy of the Ministry of Railways may adversely affect profitability.
Does not have the ability to pass on any increase in raw ingredient costs due to price regulation
by Indian Railways.
Co uses PET bottles and other plastic items for its packaged drinking water and food, which is subject to various regulatory requirements and increasing public scrutiny.
Co uses PET bottles and other plastic items for its packaged drinking water and food, which is subject to various regulatory requirements and increasing public scrutiny.
Conclusion -
IRCTC has a unique business model and the company does not have any competition across business segments, they have strong earnings profile, diversified business segment, healthy return ratio, debt-free status & most important monopoly.
IRCTC has a unique business model and the company does not have any competition across business segments, they have strong earnings profile, diversified business segment, healthy return ratio, debt-free status & most important monopoly.
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