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Convenience fees drove IRCTC’s Q2 ticketing revenue

For the quarter ended September 30, 2020, IRCTC Ltd.’s operational revenue from internet ticketing predictably fell, halving over the previous year to ₹58.29 crore. However, internet ticketing revenue increased over the previous quarter by 66%.  Internet ticketing is a crucial segment for the company; it made up 27% of its FY20 operational revenue, just behind catering, which accounted for 45%. In the period, over 8.25 lakh tickets were booked daily on the IRCTC website and app, covering almost 72% of total reserved seats on the Indian Railways. The segment revenue is fueled by IRCTC's convenience fee collected on each ticket booked: ₹15 and ₹30 for each non-AC and AC train ticket booked online. When all trains were cancelled in as the nationwide lockdown was announced in March end, convenience fees were not refunded along with the ticket amounts, IRCTC chair and managing director Mahendra Pratap Mall said on the company's Q1FY20 investor call in held in July.    For the quarter ended September 30, IRCTC collected ₹37.18 crore in convenience fees charged on online ticketing — this is 63% of Q2 internet ticketing revenue. The amount was ₹15.56 crore in Q1FY21 or 44% of internet ticketing revenue. In Q2 financials, the company added that “reliance has been placed on the management representation that unlike the previous arrangement with the Railways, there is no obligation upon the Company to share such fees earned on internet ticketing with the Indian Railways”. The company's 70% yearly increase in Profit After Tax (to ₹524…

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