Govt seeks to put IRCTC on high growth path; wants it to emulate Flipkart

By Megha Mandavia & Anirban Chowdhury, ET Bureau

MUMBAI: The Indian Railway Catering & Tourism Corporation, which operates one of the country’s biggest e-commerce portals, plans to hire a consultant to help it assess and increase its valuation, a move seen as the first step to a public listing.

“We are trying to exploit the site. Our growth will come from there. We have been asked by the government to grow like Flipkart,” chairman and managing director AK Manocha told ET.

The government wants to monetise railways assets. IRCTC has started speaking to consultancies. For now, it is just evaluating and seeing how much it can fetch if it goes for an initial public offering. It wants a ballpark figure. It hasn’t got into the IPO mode yet,” a source, who did not want to be named, said separately. Manocha declined to comment specifically on listing plans, saying it’s up to the government to take that call.

The unit of Indian Railways expects to post its highest ever net profit of Rs. 85 crore on revenue of Rs. 1,000 crore in the year ending March 31, on the back of growth in e-ticketing and the introduction of several trains last year, director, finance, MP Mall told ET. Profit is expected to increase 35% to Rs. 115 crore in the next financial year, driven by new services and advertising revenue, said Manocha. IRCTC is targeting Rs. 10,000 crore of revenue by 2025. More info

 

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