Journey of IRCTC

Incorporated in 1999, Indian Railway Catering and Tourism Corporation Limited (IRCTC) is a Miniratna (Category-I' Central Public Sector Enterprise). It was started as a public limited company as an extension of the Indian Railways to upgrade, manage, and professionalise the catering and hospitality services at stations, trains, and other venues. Initially, under the administrative supervision of the Ministry of Railways, IRCTC was entirely owned by the Government of India. In 2019, however, in line with the government’s decision to disinvest the shareholding in IRCTC, the company offered its initial public offer. IRCTC was listed on BSE and NSE on October 14, 2019. The issue was priced at ₹320 and was fully subscribed during the launch. The stock was listed at a premium of ₹644. IRCTC is one of the most transacted websites in the Asia-Pacific region, boasting a transaction volume of over 25 million per month and 7.2 million logins per day. The booking of railway tickets online is open 24/7 except for 15 minutes from 23:45 to 00:20 for daily maintenance. Here are some milestones of the company:

1. IRCTC achieved the milestone of receiving a record booking of 15.88 lakh tickets on March 21, 2022.
2. In FY 2022-23, 7,706.40 lakh passengers booked e-tickets.
3. As of FY 2023, 1,48,44,230 meals were booked.
4. 35.77 crore bottles were produced in FY 2023.
5. Currently, IRCTC administers more than 70 rail tour packages.

Over time, IRCTC has received several awards and recognitions, including Satte Awards in the category of 'Excellence in Domestic Tour Operations' in 2017, Dun & Bradstreet's PSU Awards in 2017, India Power Brand 2016 Award, Indian e-Retail Awards 2015, Best Use of Mobile App 2015, Most Trusted Brand in Railways Service Provider India Pride Awards 2014-15, etc.

Business Segments

IRCTC is the only government-authorised entity to provide online railway tickets, packaged drinking water, and catering services at railway stations and trains in India. It has five key divisions as follows:

1. Internet Ticketing:IRCTC offers railway tickets online through its website and mobile application.Catering:IRCTC offers food catering services to Indian Railways passengers on trains and at railway stations through mobile catering units, base kitchens, cell kitchens, refreshment rooms, food plazas, food courts, train side vending, and Jan Ahaars.Packaged Drinking Water (Rail Neer):IRCTC is the only authorised entity to manufacture and distribute packaged drinking water at all railway stations and on trains. It does this under the brand 'Rail Neer'. Currently, it operates 14 Rail Neer plants at Danapur, Palur, Nangloi, Parassala, Ambernath, Amethi, Bilaspur, Hapur, Sanand, Nagpur, Mandideep, Jagiroad, Maneri and Sankrail. IRCTC has also installed water vending machines at railway stations to provide purified, chilled and potable drinking water to railway passengers at an affordable price.Travel and Tourism:The company has footprints across all major tourism segments, such as hotel bookings, rail, land, cruise and air tour packages and air ticket bookings. It launched and operated a number of land tour packages, domestic air packages, Bharat darshan, pilgrimage special tourist trains, state special trains, customised travel packages, deluxe tourist trains, and IRCTC corporate trains.

• State Teertha: Under IRCTC’s State Teertha division, state governments sponsor trains for pilgrimage.

IRCTC's only joint venture with Cox & Kings in the name of Royale Indian Rail Tours Limited (RIRTL) aimed to manage luxury trains and holiday packages. A dispute led to the termination of their agreement in August 2011. While the Supreme Court permitted IRCTC to operate the luxury train, Cox & Kings Limited initiated arbitration proceedings to restore the Joint Venture Agreement. Legal proceedings, including arbitration and a case before the National Company Law Tribunal (NCLT), are ongoing.

IRCTC Financial Highlights

Here are a few financial highlights of IRCTC:

• IRCTC revenue grew at a CAGR of 19.21% between FY 2018 and FY 2023.
• Its 5-year CAGR in PAT increased from FY 2018 and FY 2023 was 35.59%.
• The operating profit margin has constantly risen from 13.93% in March 2016 to 31.28% in March 2020.
• The net worth grew by 32.51% from FY 2019 to FY 2023 at ₹2,478.40 crore.
• EBITDA increased by 47.11% from FY 2019 to FY 2023 at ₹1,396.65 crore.
• Revenue grew by 88.52% from FY 2019 to FY 2023 at ₹3,541.47 crore.
• PAT grew by 52.51% from FY 2019 to FY 2023 at ₹1,005.88.

IRCTC Management Team

Seema Kumar, Chairman and Managing Director Seema Kumar is presently posted as an Additional Member (Tourism & Catering) (AM/T&C) in the Railway Board. She is a Gold Medalist in M.Sc. (Physics) from Chaudhary Charan Singh University, Meerut and an M.Tech. from IIT Delhi. In her 35 years of career in Indian Railways so far, she has worked in various senior capacities over Northern and West Central Railways.