Wednesday 15 April 2020

Covid-19 impact: Railway move to halt operations set to dent IRCTC earnings

The railways on Tuesday said all passenger train services, including premium, mail and express, suburban, Kolkata metro and Konkan Railways will continue to remain cancelled till May 3.
Railways
The decision by the Indian Railways to stop passenger services further till May 3 is set to wipe out the national transporter’s ticket earnings and a huge share of the Indian Railway Catering and Tourism Corporation’s (IRCTC’s) revenue through service charge. The railways on Tuesday said all passenger train services, including premium, mail and express, suburban, Kolkata metro and Konkan Railways will continue to remain cancelled till May 3.
The step was in continuation with the measures taken in the wake of the Covid-19 lockdown. For railways, against an average 924,960 tickets a day booked during the first 13 days of April 2019, the daily average stood at a mere 51,175 tickets this year.
As per estimates, around 80 per cent of the tickets booked by the railways is through the IRCTC online platform. “For these 40 days of lockdown, our entire revenue is getting wiped out as service charge through ticketing becomes zero. Other revenue streams like catering, Railneer sales and tourism are on a standstill,” said an IRCTC official.


During the third quarter of 2019-20, IRCTC had posted a profit of Rs 716 crore, out of which 32 per cent came from its internet ticketing business. According to estimates, the railways’ arm is likely to lose around Rs 80-100 crore due to the 40 day lockdown. In 2018-19, the average number of tickets sold through IRCTC website was 7.78 lakh per day. The revenue of internal ticketing segment for the financial year 2018-19 was at Rs 239 crore, up from Rs 204 crore in 2017-18…

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