IRCTC registers Rs 82 cr profit in 2021 Quarter 1; railway board approves 1:5 stock split

In a positive sign for the Indian Railways, the IRCTC on Thursday reported a net profit of Rs 82.5 crore in the June quarter of 2021-22. The Indian Railway Catering and Tourism Corporation (IRCTC) recently released the results of the June quarter of the financial year 2021-22 and revealed that the company reported a profit of Rs.82.5 crore in the June quarter, as against a loss of  Rs 24.6 crore in the same quarter last year. IRCTC, the tourism, and catering arm of Indian Railways had posted a loss of Rs 24 crore in the year-ago period and a profit of Rs 103 crore in the March quarter.

Apart from the IRCTC's board has also approved the proposal for a split of one share at a face value of Rs 10 each into 5 equity shares at a face value of Rs 2 each. This is subject to the approval of the Ministry of Railways. The stock split will enable the IRCTC to create more liquidity by making the price of the stock more attractive for a larger number of people, especially small investors.

A stock split or stock divide increases the number of shares in a company. A stock split causes a decrease in the market price of individual shares, not causing any change in the company's total market capitalization. 

IRCTC Resumes Catering Services

Meanwhile, the IRCTC on Monday, August 9, announced that the catering services will be resumed on trains. The catering services for the commuters were halted by the Indian Railway Ministry since the outbreak of the COVID-19 pandemic.  More than 500 eateries are currently listed on the IRCTC eCatering website, including Domino's, Comesum, Zoop, Railrestro, Relfood, and Garg Rajdhani online food Yatri's, and Rail Recipe.

IRCTC has also released a new E-catering app, which is available on 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.

(Image Credits: PTI)