Convenience fee waiver would have benefited consumers at least…no one is benefiting here neither government nor a shareholders.
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Prior to 2014, while the ministry decided the quantum of the charge levied, IRCTC didn’t have to share it.
In 2014, it decided to split the charge 80:20, with IRCTC getting the bulk of it. But a year later, the ministry reduced the company’s share to 50%.
It also doubled the service charge to Rs 20 for non-AC and Rs 40 for AC bookings, according to letters from the Railway Board.
The fee was discontinued on Nov. 23, 2016, following demonetisation to give a fillip to digital transactions.
But the company lost a revenue stream. So, after its several representations, the ministry restored the fee at a reduced rate from Sept. 1, 2019.
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This too is normal. All Gov enterprises on the bourses are like this. You’ll see this over and over again. A good monopoly biz? A IAS babu will run it into the ground within 2 years with a harebrained idea. No biggie, he’s got no skin in the game. A failed gov fertilizer biz and you sold the shares at Rs 1.25. Here’s a 2000 crores for a revival package and the share prices zooms to Rs 40. And you look like a chump.
The dividends are good though, when they declare it.
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This was bound to happen . government of India lost 7400 during today’s fall .
When they did such in past they were not listed entity. Now scenario is entirely different…
Happy if they take decision back . I’m bullish on it’s business…
Invested
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I am extremely disappointed with IRCTC. It is really shocking disclosure by IRCTC to BSE’s queries denying that IRCTC had no negotiations or events took place related to proposed 50:50 convenience charge sharing until they received railway board’s letter to them yesterday?? Absolute I can’t believe that the railway board would directly give their decision without having a single word with IRCTC management.
Interestingly, in yesterday’s IRCTC disclosure to exchanges, they have not attached Ministry of Railways letter. So we don’t know the actual content of that letter. However, in today’s disclosure to exchange they have promptly attached Railway ministry’s decision to withdraw.
I clearly see a red flag in their corporate governance w.r.t. their disclosures to the exchanges.
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It appears absolute lie, that can be clearly seen from her answer. I dont think investors will easily buy her answers. I think she is saying what was told to her. Does that mean Railway Ministry had no idea before hand what would be market reaction due to their decision??
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Such a lame interview. For all the debates around disinvestments by government, all they do is mismanage their assets till they’re down in the gutters. On the other hand, once they disinvest, the assets shine under professional management. May be Hindustan zinc provides the best model. Retain minority and let professionals take over. Otherwise, monkeys at the helm would run the ship aground.
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A dumb question.
Technically 2/3rd of IRCTC is owned by GOI (President of India). Did this change (now rolled back) mean that 50% of convenience fee goes to ministry of railways. And the remaining gets accounted in the books of the company?
Why would govt kill the golden goose for little gains?
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The news regarding the sharing of convenience fees was with an insider when the file for the same was in draft mode. Nothing is going to happen in that case , SEBI will only be mute spectator to whole incident.
Rajni hasija may be not in the loop that time. It is the Ministry of Railways officers/ staff/ MTS real culprit.
Chalo dekhte hain kuch action hota h kya?
How can you say that the circular was in draft mode when ET reported on 28th Oct, that Railway Ministry has asked IRCTC to share convenience fee? This is the typical mindset of Babu’s. Railway ministry must take action against the concerned official. But we know the ways how Babu’s work. So all concerned, including ministers, must be involved in this. If Govt wants transparency, they must come clean on this and fix responsibility. But don’t bank on it.
if you go by the IRCTC share price chart , look at 20th october candle, heavy selling with largest single day volume till date. On that day the company’s fundamental was same as on the previous day, nothing had changed overnight.
I, being a govt employee, working in finance ministry know that it usually takes time to pass an order especially in Govt office. It starts with file put up with remarks on notesheet and approval on there itself. Then it comes to drafting the order which again goes for the final approval from higher authorities. So it may be around 19/20th october that the file has gone for notesheet approval and somebody who has been handling the file leaked the info in lieu of a big amount. IRCTC management received that order on 28th and rest is the history.
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and the same should be applicable while reversing the order too, right ? Another file being put up… etc etc… how come the reversal came, as if , someone had a time machine and he just moved the time backward, to make it look like, as if the order was never made in the first place. Given the communication skills of Ha**ja ji, I doubt she has the ability to convince the railways ministry about the need to reverse this decision so quickly. So someone at very high level played a dirty game !!
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Anyone in the ministry could have leaked it. Including the top guns. Since such a decision would not be the brain child of a section officer. Everyone from the CEO to the MTS handling the file knew.
Friends let’s not waste time on why it happened and start discussion on the future of Irctc
Now things are on track
We should look at the new opportunities what it can have
Can they expand Rail Neer business
If irctc is valued like Zomato in that case what will be it’s valuation.
Let’s discuss.
Imo the decision has just been delayed and not completely withdrawn i won’t be surprised if in few years similar 50% convenience fee sharing model comes again but this time i expect them to to double the charges like it was few years ago(not sure though) . That been said i have exited a little of my position, will exit the rest after split shares are credited, I’m still very positive on the growth prospect but I don’t think platform business valuations can sustain in a psu company because government authorities will keep on doing dumb things that we don’t have any control on.
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Quarterly results …exchange time 1.24 PM today.
Hard to compare QoQ or YoY because of the pandemic effect but from the looks of it, heading up steady. As long as there is no new 3rd wave, or new shockers like the 50:50, this should be steadying from here, I guess. Will need a deeper look
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To those thinking that Railway board’s decisions regarding sharing of convenience fee is a one off & without precedent, pls read this
Railway board has also increased Haulage charges for Tejas Trains leading to loss on both operational trains, this was mentioned in the earnings call yesterday. Shouldn’t this increase have been mentioned to the stock exchanges ??
Rajni Hasija ji also side stepped the question on sharing of Rail neer revenue, surprising considering there is an ongoing tiff on that bit
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