IRCTC Stock split
On Tuesday, IRCTC has published its Q1 results. It posted a net profit of Rs. 82 crores for the first quarter of 2021. Revenue from operations of IRCT Stock increased by 85.40% to Rs. 243 crores. In the last year quarter, it reported a net profit of Rs. 131 crores.
With the positive results, the Indian Railways propose to split the stocks at a 1:5 ratio with a face value of Rs. 2 each. However, the Railway board approved the proposal for a stock split of 1 share at a face value of Rs. 10 each into 5 equity shares at a face value of Rs. 2 each. However, the split process was subjected to the approval of the Ministry of Railways, Shareholders, and other approvals.
On the day of the split announcement, IRCTC was raised around 3.60% from a low of Rs. 2,605 and hit a new high level of Rs. 2,728. Currently, the stock is trading at Rs. 2,667.00 with a loss of 22.80 points.
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On the other hand, the revenue from the catering business fell over 37% to Rs. 56 crores from Rs. 89 crores in the Q1 of 2020. Further, Internet ticketing revenue raised over 300% to Rs. 149 crores. Tourism segment revenue business doubled to Rs. 7 crores.
However, IRCTC expects to complete the stock split process within three months from the date of approval receipt received from the Indian Railways Ministry.
IRCTC has also published a new E-catering app. The app is available on both Google Play and iTunes. Earlier last month, Union Railway Minister Piyush Goyal took to the microblogging platform to announce the resumption of 32 pairs of trains including Garib Rath Express, Shabe Punjab, Taj Superfast Express among others.