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By Malvika Gurung
Investing.com — Shares of the e-ticket booking platform for Indian Railways, IRCTC (NS:) tanked 6.55% to Rs 747.25 apiece on Friday, after the company announced to restore unreserved coaches for passengers in trains.
In an exchange filing post-market hours on Thursday, IRCTC informed citing a circular dated Feb 28 that it has restored unreserved coaches in trains, adding that second class accommodation in trains already restored with regular train numbers will be earmarked for the reserved or the unreserved as per applicability during the pre-pandemic period.
During the pandemic, to keep a check on social distancing and avoid crowding on ticket counters, the Railway Ministry had permitted bookings to be made only on a reservation basis.
All the unreserved coaches were converted into second seating coaches, which needed mandatory reservations.
About 39% of the ticketing major’s ticketing volumes and the total profit after tax in the Dec-ending quarter came from 2S class ticket reservations.
By restoring unreserved coaches, IRCTC is likely to lose the earnings from reservation charges led by online ticket booking, cited a Times Now coverage.
The restoration development could also hit the overall ticket volume of IRCTC in the upcoming financial year, however, the company’s management appeared very optimistic with their roadmap in their Q3 conference call, added the agency.
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