The Ministry of Railways has sent a letter to Indian Railways Catering Transportation Corporation asking them to share 50 percent of the revenue from convenience fees, the company said in today’s exchange.
So far, IRCTC NSE holds 25.00% 100% of the convenient charges charged to its customers to provide a variety of services.
According to the IRCTC website, convenience fee revenue is recognized based on the value of convenience fees earned by domestic customers with tickets booked through the website.
Analysts believe this caused a nearly 50% decline in IRCTC’s revenue, as most of IRCTC’s revenue comes from Internet ticketing services. IRCTC’s shares rose nearly 12% at Rs 923 on the National Stock Exchange.