After issuing a tender to monetize rail ticket data, IRCTC stock sees a 5% spike

19 Aug 2022 , 04:47 PM

On August 19, after the company announced a tender to monetize its data assets in order to raise income and increase profit, shares of Indian Railway Catering and Tourism Corporation (IRCTC) increased by more than 5%.

The BSE started IRCTC shares at Rs.712; so far in the session, they have fluctuated between an intraday high of Rs752.50 and an intraday low of Rs.697.75. Shares of IRCTC traded 5.08 percent higher at Rs749.25 a share on the BSE at 1:05 PM.

Digital monetization is purportedly intended to bring in Rs1,000 crore for the Indian Railway's ticketing division. "IRCTC is a reservoir of enormous amounts of digital data, opening up various potential for IRCTC to be monetized," it stated.

IRCTC, a public sector organization that also offers catering and tourism services to the Indian Railways, maintains a monopoly-like grip on the railway ticketing market. It recently announced a 198 % increase in net profit for the quarter ended in June, coming in at Rs245.52 crore. In the quarter under review, IRCTC's income from operations increased 250.34% to Rs852.59 crore from Rs243.36 crore in Q1FY22.