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IRFC

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ABOUT

  • IRCTC is fully government owned Public sector company controlling the complete railway structure in India from hospitality to catering and more. All the operation related to rail commuting is being monitored and maintained under IRCTC.
  • It is continuously working aggressively to upgrade the railway network in the country.
  • It brings a highly significant amount of tourism base into the country through rendering services in the transportation sector.
  • It operates one of the most transacted websites, www.irctc.co.in, in the Asia-Pacific region with transaction volume averaging 25 to 28 million transactions per month during the five months ended August 31, 2019.
  • Currently it is covering four major business segments namely namely, internet ticketing, catering, packaged drinking water under the “Rail Neer” brand, and travel and tourism.

 

Business Strategies


Serving the passengers with the high quality services in diverse fields

IRCTC works regrously to find out most efficient way to solve the problem statement of the passengers. With a total transact of more than Rs 360 billion IRCTC has planned to develop its own e-payment gateway.

  • IRCTC iMudra wallet and i-Pay
    Online money wallet to avail normal facilities and special discounts using a single payment gateway. This will surely promote the digitalisation and make the whole experience of travelling through railways more convenient.
  • IRCTC as Private train operator
    IRCTC will be controlling the fare independently making the research oriented part of the system more applicable while deciding the fares and prices of different products and services.

Holding the government policies in all the operations executed

IRCTC is continuously utilising the government policies to provide better products and services such as the implementation of Catering Policy 2017 and the entire control of manufacturing and distribution of packaged water. Planing of providing catering services to non pantry trains via rain side vending (“TSV”) is under the pipeline.

Giving a strong push to online services.

Company is working to make its current online services more efficient and to increase the accessibility of the less penetrated area of online services. With new and innovative ideas in the development of online platforms soon consumers will be offered a personalised experience.

 

INITIAL PUBLIC OFFERING

BID/OFFER OPENS ON Sept 30,2019
ISSUE TYPE Book Built Issue 
BID/OFFER CLOSES ON Oct 3,2019
ISSUE SIZE Rs 635.04 - Rs 645.12 Crs.
ISSUE PRICE Rs315-320 Per Eq. Share
FACE VALUE Rs 10 per Eq. Share
MARKET LOT 40 Eq. Shares
LISTING AT BSE,NSE

 

SHAREHOLDING PATTERN

Shareholder Number of Equity Shares Percentage of pre-Offer Eq Share capital
The President of India* 160,000,000 100

*Inclusive of 56 Eq Shares held by nominees of the President of India.

 

INDUSTRY ANALYSIS

OVERVIEW OF RAILWAYS SECTOR IN INDIA

Trend in Passenger traffic and Freight traffic for Indian railways during the past 5 years (FY14-FY18)

Passenger traffic growth has remained flat over the past four years
Total railway passenger traffic has remained nearly flat over the past four years, going from 8,397 million passengers in fiscal 2014 to 8,286 million passengers in fiscal 2018. Passenger traffic, after falling by 1-2% between fiscals 2014 and 2016, witnessed a revival in fiscal 2018, largely driven by a turnaround in non-suburban traffic.

Railway passenger traffic(million passengers)

 

Freight traffic growth revives in fiscal 2018 after remaining flat for two years
Total railway freight traffic grew from 1,052 million tonnes in fiscal 2014 to 1,160 million tonnes in fiscal 2018, registered a 2.5% CAGR during the period. Growth in freight traffic was majorly driven by strong freight demand from coal, pig iron and finished steel, iron ore, and container service during the four years. In fiscal 2018, freight traffic rebounded to a 4.8% on-year growth on the back of strong freight demand from coal, cement, container service, and other goods.

Railway freight traffic (million tonnes)

 

Investments in Railways sector over the next three years (FY19-FY21)

Robust investments over the next three years to be driven by dedicated freight corridors
The government announced a planned outlay of Rs 1.59 trillion for the railways in the Interim Union Budget 2020, 14% higher than the preceding year's revised estimate of Rs 1.39 trillion, thus driving investment in the sector. About 41% of the planned outlay is expected to be financed through budgetary support, and the remaining through internal sources and market borrowings/institutional finance.

Split of investments among railway segments

 

 

Overall investments in railways (Rs billion)

 

OVERVIEW OF FOOD SERVICES/CATERING INDUSTRY

Overview of overall Food services/Catering Industry
As per the National Restaurant Association of India (NRAI), the food services industry was estimated at Rs 3.09 trillion in fiscal 2016, and has grown at a ~11% CAGR to reach Rs 4.24 trillion in fiscal 2019. The growth was driven by growing young population of India, rising disposable incomes, uptick in discretionary spending on eating out, and growing number of women in working population. Increasing availability of restaurants offering variety of cuisines along with the proliferation of food- ordering platforms has also aided growth of the food services and catering industry.

Estimated growth in IRCTC's catering revenues(Rs billion)

 

E-catering services order volume(thousand)

 

E-catering services revenue(Rs million)

 

OVERVIEW OF TRAVEL AND TOURISM INDUSTRY

Direct contribution of India's travel and tourism industry to GDP (Rs trillion)

 

Domestic tourist visits to all states/UTs in India(million)

 

Foreign Tourist Arrivals in India(million)

 

OVERVIEW OF PACKAED DRINKING WATER INDUSTRY

Organised Packaged Drinking Water Market (at retail price) (Rs.billion)

 

Packaged Drinking water(PDW) market (Rs billion) for railways

 

OVERVIEW OF E-BOOKING INDUSTRY

Estimated current market size for Indian booking industry(Rs billion)

 

Current share of e-booking in Indian booking industry

 

Current segment wise share in Indian booking industry

FY14

FY19E

 

Current market size of e-booking industry in India (₹ billion)

 

Trend and outlook for the online booking industry in India

 

FINANCIAL OVERVIEW

(INR Million)

Year Total Revenue Total Expenses Profit for the period Total non current liabilities
31 March 2017 16,028.50 12,477.82 2,290.81 921.87
31 March 2018 15,695.60 12,239.27 2,206.19 896.36
31 March 2019 19,566.60 15,266.97 2,725.95 666.93

Total Revenue & Total Expenses

 

Profit for the period

 

Total non current liabilities

 

STASTICAL OVERVIEW

Year RoNW(%) Basic EPS(Rs)
31 March 2017 29.12 14.32
31 March 2018 23.11 13.79
31 March 2019 26.14 17.04

Basic EPS(Rs)

 

RoNW(Rs)

 

References

  • Indian Railway Catering And Tourism Corporation Limited. (IRCTC) Red Herring Prospectus.
  • irctc.co.in

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