Thank you, Steve. Hello, everyone. On behalf of my immediate touch cell, I will be with you for Indian Railway Catering experience every time we have interacted with you. And of course, nevertheless, you have led and at the Capital Markets as well. Of course, you will be missed, but we will still thank you
Sir, you may proceed with your opening comments.
Yes. Good morning, everybody. I wish you and your DR1s a great and safe 2021. We are meeting for the first time in this calendar year. I welcome you all to our CTC earning call for the quarter 9 months ended December 2020.
Yesterday, the company had announced the unaudited financial results for the Q3 9 months financial year 'twenty one and same have been disclosed on both these stock exchanges. As you know, the COVID-nineteen pandemic has impacted us Across all the business segment and hospitality was the worst affected, which weighed on year to year performance. However, quarter 3 has seen good improvement in revenue and profitability on quarter to quarter basis. All these segments apart from tourism have seen quarter on quarter improvement in profitability. Given the tourism segment would have seen an improvement but for partial operation of Tejas trains.
I shall now hand over the call to our Director of Finance and CFO, who will details of Q3 results, result post which we'll after which we'll have a question and answer session.
Thank you, CMD sir, and a warm welcome, 1 and all, to our Q3 FY 'twenty one earnings conference call. Let me first give the overview of the financial results followed by a brief performance of each segment. Q3 revenue came at rupees 2.44 crores, which implies a strong growth of 153% on quarter on quarter basis. On year on year, that is still lower by 69% impacted by the pandemic, as Sir, I discussed earlier. EBITDA margin for the quarter touched a new high of 42.2% versus a loss of 6.3% in Q3 FY 'twenty one.
Margin of 37.1 percent in Q3 FY 2020. This was driven by the quarter on quarter increase in profitability of the Internet ticketing segment and lower loss in the capital segment. CGM was the only segment we saw quarter on quarter increase in loss was largely offset by the decrease in losses in the participating water segment. The Brazilian segment would have seen improvement Now the net profit for the quarter stood at INR78 crores versus
RMB0.06
year on year. Now let me now move to the business segments of the company. The first one, the Internet ticketing. Internet generally has the 2nd largest contribution to company revenue. However, due to the impact of this dynamic, it has been the largest segment for Q3 FY 2021 in Q2 FY 2021 and INR27 crores in Q3 FY 2020.
Income from service charge was about INR50.95 with 5,000,000 tickets being booked to IRCC. EBITDA margin for the segment improved to 26.3% versus 68% in Q2 FY 'twenty one and 35.2% in Q3 FY 2020. Moving to the Catterings segment, In Q3 FY 2021, revenue for the segment was INR 49 crores versus INR17 crores in Q3 FY 2021 and INR269 crores in Q3 FY 2020. Loss at EBITDA level declined to INR8 crores the loss of INR33 crores in Q2 FY 2021 and with a profit of INR30 crores in Q3 FY20. This segment continued to see the impact of the pandemic and only ready to eat meals were in service on the trends and pre cooked meals were allowed for the static catering units only that also for part of the quarter.
On the positive side, the pre cooked meals to e cataracts have been allowed with SOPs. So we may see the I mean this further improvement. Now the next segment is the rail need. The Q3 FY 2021 saw a quarter on quarter pickup in revenue to INR 17 crores versus in Q2 FY 2021, those still lower than INR69 in Q3 FY 2021. The current capacity is around 14 lakhs liters per day, which will increase to around 15 lakhs per day by end FY 2020.
This will be achieved through addition of plants at Una and Busavol. Now the higher capacity will enable our tendency to be ready with supply volume as the one normalizes in the future. Now next segment is prism. The previous segment has been impacted the most for the industry, which is the VPC phenomena worldwide and so for IRCTC, while the remaining improved quarter on quarter to INR 16.5 crores from INR 4 crores, it will lower than looking INR 1.61 crores in Q3 FY 2020. With lower revenue and partial operation of the previous trend, The loss of EBITDA level increased the quarter to INR11.4 crores versus INR59.5 crores.
For Q3 FY 'sixty one, the CapEx was INR 15 crores and for 9 months FY 'sixty 1, it has been and the cash on the books as of end of Q3 FY 'twenty one by rupees 15.60 crores,
first question is from the line of Ashwin Agarwal from Ashmore Investment. Please go ahead.
Good morning to all of you and hope all of you are safe too. A couple of questions. How do you see the tourism business evolving in the current quarter and the next few quarters? I believe you're restarting some of your pages express claims with the effect from middle of February, if I'm not mistaken. Could you give us
Yes, I'll first mention about tourism. See, PAGES is slightly different from tourism because You can say it as a primarily as a travel mode. Now coming to tourism, tourism our We have a wide range from mass tourism to customized tours. So Our unique proposition is about this mass tourism by way of Bharat Darshan trains and Telegram special trains, whereby we carry almost 700, 800 tourists on a sleeper class train to various places of touristic or religious importance. And we take care of everything.
This is primarily senior citizens. In this segment, yes, we have made some inroads in the month of December. We ran 2 Bharat Darshan trains, which ran to almost 90% occupancy. January, we have already done about 3 trains And till end of the financial year, we plan to complete about 14 such tours. You see each such tour carries about 700 to 800 passengers So In this segment, we are receiving very good response.
In fact, Lucknow, this last group campaign which started on 12, It got filled up within 4 days. So that means it implies that The fear of COVID is gradually going away. And these are the things where social distancing and other things are also, I mean, difficult to friendly speaking follow. People have started moving. We are hoping that by March end things should improve drastically.
Okay. And sir, any update on the stages trends because you started and then you stopped again because demand
was We started in the last festive season that is between the Sharra and Diwali. And you recall that was the time when COVID cases were also at peak. So we didn't get Viable occupancy on those trains, right. After that, the cases have drastically come down. Now we have come to a level of almost 15,000, 16,000 cases per day.
And positivity rate also has gone down drastically, I mean barring 2 that is primarily Kerala and to some extent Maharashtra. So this is perhaps a good time to start and we'll start these things from 14th February.
And will you be starting all of them or you will start 2 Tejas. I mean
we run Tejas in one Tejas are basically intercity trains. Makal is overnight train. So we'll start with 2 Tejas and then
Okay. And sir, on the water business, I You had a capacity constraint in the past, but there is a significant investment going on right now. You will get to 14, 15 lakhs liters per day over the next 12 months. I think capacity is expected to increase if I'm not mistaken to 27, 28 lakh liters or something
like that. How will the best lead by March end will go up to about 18 lakh bottles per day. You see what happens when any plant picks it up. And normally during the 1st year, it runs at about 50% to 60% capacity. And once it stabilizes in 2nd year, it touches a level of around 75% to 80%.
Then 3rd year onwards, it touches anything from 90% to 100% or maybe even more in some cases. Most of our plants were commissioned in last 3, 4 years. So, Every plant will give us enhanced input in addition to 3 plants or 4 plants which are commissioned during 2021.
So sir, how is the profitability
change here? Will you see operating leverage play out? And I just wanted to As you migrate your customers from bought out water to near in your trains, I'm assuming that you will sell near first and if Nir is falling short, you will sell a Bisleri or Acoffin or whatever else. So how do the economics from a profitability perspective? Yes.
See, see, see, there is a major difference. See what happens when Some stations and some trains are exclusive rail key stations. As and when our production and capacity and logistics stabilizers, we request railway boat to declare more and more stations as railway stations. So on those stations and those trains, nothing except rail is sold. It's only at these stations where Railview is not available either because of production constraint or logistic constraint.
But Indian Railview, I mean, Zonal administration, it approves various brands which are sold at those stations. So gradually, as our reach goes up, We approach Railway Ministry to declare more and more restrictions as we lease mandatory stations.
And how does the profitability on a per bottle basis differ between near and between bottled water?
Bottom of water, we have no control over that. We have no account for that. We are responsible only for producing and distributing and selling rail. And Profitability obviously depends on the primarily on the cost wise cost of production there will hardly be any variation. It's basically logistics, Ross.
But on bottled water, you have any margin? Then we don't take any margin. What about water is purely handled by railways? We don't have any stake in that.
Okay. So there you don't have any play? No. Unlike the product which gets ordered
where you get a Yes, that is a different.
Okay. So as you said, sir, this is the operator. Follow-up,
The next question is from the line of Ganesh Joshi from BNP Paribasli. Please go ahead.
I have two questions. If I'm not mistaken, in the month of November, some of So what I want to know is that what is the current count as of now and by when is the full capacity?
Sir, this is I mean your answer to your question also running during that period. Right. Currently, we are running about 400 trains. I mean, Indian railway is running 400 trains for which we are booking the tickets. And this number keeps on changing like In particular section, if we're waiting list has gone beyond the number, then immediately another train is run after that.
Sure. And since this 400
ks, what proportion of capacity do they repurpose?
It's about I mean, it's a very wide question because if you these 400 trains are primarily Express over the Mill Express trains and shut up the Lazani type train. Now if you compare it only with Mill Express Maybe around 60% of the trains. But if you compare it with total number of trains, which includes passenger and other trains, Then perhaps the ratio will be lower, which may be around 35% to 40%.
And in the opening remarks, we mentioned that the convenience fee income was 97. Did I hear that right? Yes. So if I look at the Internet ticketing revenue, that year was INR 143 crores. And if I reduce the convenience fee of INR 95 crores, we have some balance in some of INR 48 crores which has come from other nonconvenience related charges.
This appears to be slightly higher than what it was in the last 2 quarters. So has anything changed between now and then?
No significant change, but see, I mean, The one major thing number of ticket has gone up. Number of ticket has gone up, so financial charge transaction has gone up. This money comes primarily from the fall on our website. So ticket going up, footfall on
Okay. So one last question, in the heating business, by when will the tariff hike
Currently, we have instructions to serve only ready to eat meal, which is on MRP basis. So as I mentioned, it's relaxing for supplying regular meal which was done pre COVID, then revised tariff will be affected from that period only. Because revised tariff was issued on November I think October November end which was implemented for mail express train but for Azani Shaddadi this was to be effective from 20th March. So the moment this relaxation of supply of pre cooked meal is given, Device tariff will be applicable from that period only.
And the margin potential?
I mean, if we compare it with pre COVID period, obviously, the Margin will be much higher compared to earlier.
Okay, sir. Thanks a lot.
Currently, we are booking almost 8 lakh tickets per day. We were booking about 9.5 lakh tickets. This quarter we have booked 5.5 crore tickets. That is 55,000,000. About 7.8 7.528 light tickets per day.
So why is there less recently?
You see all these mail express trains they have 3 or 4 they used to have 3 or 4 unreserved coaches. Yes. Now those unreserved coaches have been converted into Sitting reserved coaches. So, each seat is allotted, each seat is reserved to a particular passenger, Right. Those tickets are also booked by us now.
Earlier, it was part of un reserved ticketing system, which was handled by railways. Now with the conversion of these seats to 2 S Class, this reserve booking is done by us. And when I mentioned about 8 lakh tickets per day roughly 30% is from that segment.
Okay.
I don't think so. But on reserve will largely be for passenger trains, these are long distance trains.
Next question is from the line of Sanjay Rupala
Just one area which I want to probe more, when can we get more clarity on the future leadership for the company, sir?
It should be, I mean, the government has a procedure of appointing Director, so applications have been called up. The only thing that we will be held, maybe another 3 to 4 months things should be clearer.
The next question is from the line of Sujit Jain from ASG Investment Managers. Please go ahead.
Yes, it's approximately 18. You see, I mean we charge rupees on 3440 on AC classes. However, for UPI and Beam, we charge 1020. So our average realization pre COVID was about INR20, INR20.5, which has recently gone down to around 18 point something because the share of GIM and UPI is going up. And as I told you, this segment, I mean, Unreserved, this sitting which was there unreserved earlier has been converted into reserve segment.
And this is the class from which more and more beam and UPI bookings are coming. They will be non AC? The AC ratio is about 1 third, 2 third. But again, this 1 third, 2 third was excluding this 2S category. So suppose the 10 lakh tickets are sold per day, So how does that 3 lakhs is this 2S, how does balance 7 lakhs roughly 1 third is AC and 2 third is non AC?
2S meaning the mail that we just explained. 2S is sitting reservation.
Got it. And you're saying 2 thirds, 1 thirds, 36% would
I mean most of these plants they are on the PPP mode wherein we give them land and cost of and we give them the cost of I mean capital support also. Normally, we buy this water at about 5 to 5.5 rupees. Then to this we add GST and logistics cost and we transfer this bottle to seller at for distance within 50 kilometers and 10.50 for distance beyond that. And in this entire process, we have a margin of about 1.3 rupees per bottle. In addition to this, we get about 40 lakhs as license fee from each plant in lieu of land given to them.
And in addition to this, Sometimes you must have seen the level of levels on the water bottle having some advertisement.
Okay. And one question is that
the process has happened, government ticket is unfortunate. When will be the next tender of 5 days?
It's difficult for me to decide. It's basically Ministry of Finance And Deepam, when we decide and commit to us, then we
What we are asking is, when is the
net that they are allowed
I think 2 years is cooling off period for us.
Gotcha. Okay.
Thank you. Next question is from the line of Sanjay Kumar from LNG. Please go ahead.
It is for Indian railways to decide and they are studying the occupancy level at various routes and various trains. And trains are being started in phases wherever demand is there. There are section where We have no control over frankly speaking starting or stopping a train except 3 of our trains.
Next question is from the line of Pavan Nandu from CMO. Please go ahead.
It is current for January so far.
Okay. Okay. And sir, in terms of the revenue
It's around 91%, 92%. Okay. We are hoping that this will sustain at this level, because all of us don't see comfort level in booking a ticket sitting at home rather than going to a booking office, standing in queue for an hour and doing all that exercise. So anyone who has Once seen the convenience, I don't think they will go back to window again. We hope that this ratio of this percentage, this market share will continue.
But at the same time, we also know that certain percentage will always be there on window because there is a basic difference in the Nature of ticket bought from window and bought online. See, if there is somebody has bought a ticket from window and he is wait listed And he puts the train. He is authorized passenger. He is not treated as ticketless traveler. Whereas with online ticket, I mean, with this eticket that we give, If somebody is in waitlist and he travels on the train, he is treated as ticketless traveler and he is charged penalty accordingly.
So, a small segment of passengers, those who have to travel by any means in any case. We will buy ticket from window and then even with waiting this, we'll call the train because main objective is to reach the destination.
Got it.
And the last question is that We have so many tips per day on our channel. We have such
a rich
customer gateway. What are the plans for advertising to monetize the data?
Somebody asked the question, I think before that with the calculation that INR 95 crores is from a ticking revenue and non ticking non convenience fee was about INR 45 crores. So it is we are doing all out efforts. Out of that INR 45 crores, roughly INR 7 crores or INR 8 crores or maybe INR 10 crores will be from advertisement and rest is from this type of efforts which you are mentioning. And we are executing more and more projects for monetizing the footfall. 100 of people have approached me that I'm sitting on a gold mine and say somebody say this potential is 500 crores, somebody say 5,000 crores, But nobody comes in a concrete, they think how to extract the gold from the mine.
It's unknown potential, frankly speaking. Whoso comes with any concrete proposal, we allotted. Go and do it.
10%
to 15%.
The next question is from the line of Nehal Jam from Edelweiss. Please go ahead. So just one question from my side.
I just wanted to know what could be the proportion of ticket that are booked via the UPS and the green route and See, Bheem UPI booking earlier was in the range of 15%, while it has reached about 22%, 23%. And there is no discrete period, but we can always change it. And discount given is, I mean, as I mentioned in reply to one of the queries that for AC class, Normally, it is 20 and as a for non AC 20 and AC class is 40. For Veeam and UPI, sorry, it is 1530.
So do we have a plan of wanting to
The next question is from the line of Manish Poddar from Newcom. Please go ahead.
We had planned for about INR 150 crores for all the projects. Now see what else We have virtually deferred the CapEx by 1 year. Our, especially this CapEx on the Internet ticketing segment. We got all the licenses renewed by year and deferred it by 1 year. CapEx also because there was delay in finalization of bids.
I mean, so far we could finalize the ticket only for Kajarah. There are some issues with the Kibodia Hotel. So, virtually, you can say that entire CapEx is deferred by 1 year. 5,000 tickets per day is the current volume And quarter 3 it was around 3,500. Currently it is 3,000 up to quarter 2 it was around So there is a growing trend in that.
Okay. And one last one is, also my notes that have we launch the MICE program or where is it expected to launch?
I think within this initiality, here it is expected to be launched. We are doing the technical integration for that.
Okay. Thanks so much.
The next question is from the line of Ramesh Pon from Consequences. Please go ahead.
The second one is, like this quarter, the margins were exceptionally high. So when the things are normalized, Your answer to your first question is currently we have no Thinking about increasing the convenience fee because I mean our current margins and Obviously, it's a matter of calculation, simple calculation that once the operation normalizes to pre COVID level. Now in all segments you see, I mean, ticketing because of number of tickets going up, in catering because of increase of tariff, The reason also the increase of volumes, obviously, it's a sheer calculation that will tell you that EBITDA margin will go up. Operation normalizes pre COVID level. So that EBITDA margin will go up from where Q3 onwards, it will improve quarter by quarter.
There's no because there is a growing trend.
The next question is from the line of Ashwini Agarwal from Cashmore Investment. Please go ahead.
Sir, just
in the past what would be kind of full Number of tickets being sold on a per day pre COVID compared to the 7.58 lakhs number that we have now. What was that at the peak?
See, pre COVID peak, there may be exceptional days of peak when even 15, 16 lakh tickets are sold. But pre COVID, if you take a broad average, it was about 9 lakh tickets per day. Currently, even with around 40%, 5% of the trains running, we have reached a level of 8 lakh tickets per day. This is prime I mean this increase is contributed Largely, I mean, largely by conversion of unreserved seats into reserved seats in mail express trains. Each mail express train used to I mean runs without 4 to 5 unreserved sitting coaches.
So all these seats in these coaches have been converted into reserved seats with a new class of 2S, different seating. And this unreserved ticketing has now moved to reserve ticketing and we are beneficiary. Currently, the figure which I mentioned about 8 lakh tickets per day, roughly 30% is contributed by this Class 2S. So there were
2 drivers for you. One is the shift from un preserved
to reserve because every this 2 S class came in. And second
is your 75%, 78%, 90 1%, 92%.
And in future, what is going to happen more and more
And just to confirm, the charge for a sleeper is INR20, For AC is INR 40 per ticket and for 2S also you charge 15 or it's a lower number? 15 only.
Okay. Thank
you, sir. Thank you and all the best.
Thank you.
Thank you.
Next question is from the line of Sushmit Satoddia
Total data base is about INR 6 crores, Active users is about INR5 crores, daily new registrations are about 25,000 users per day.
Okay. And, Erwan, second question is the no run
This is for the Aegis Train you are mentioning? Lease charges. Lease charges for that? The lease charges for that and fixed all it will be around INR 14 crores for both the trains.
And the last question is
No.
Okay, sir. Thank you very much.
Thank you, Ondil.
Yes, sir.
Umil, I'm just I have some other pending engagement. So now Mr. Ajith Kumar, Our Director of Finance and CFO will reply to all the queries. Please excuse me. And thank you, everybody.
Question is from the line of Siti Jain from BSG Investment Managers. Please go ahead.
I just had a query. It started in 2014 and from there only this journey of this convenience fee and what charges was started. Of course, in the One time, so this was as a distinct promotion, this was taken away also. But of course, we were compensated. But then after that, the Ministry of Finance and as well as the Ministry of Railways have given this authority to decide this Yes.
So the convenience charges, which we found as a convenience charge. And then from the 2018, 19, Joseph, we are charging this around 15.30. And for UPI and Beam, of course, Hello?
Seems like we lost the position for current participants. We move
to the next question from
the line of Usha Bora from MK Ventures. Please go ahead.
Yes. Thank you so much for the opportunity, sir. Quickly, Jigene, I'm not sure whether this was covered earlier. I would like to understand when the dedicated credit corridor comes in over the next couple of years. Structurally, what are the positives that we could see for the I think you have seen in turn for IFCT across certain lines of business.
Yes, this is the TFCCA IL when we will start operation. It's already some of the segments already, I mean, this started. But once from end to end it starts, and then we have we'll have the capacity and then the those passengers because there is always I mean a gap between demand and supply. So the demand is more So that means more number of customer trends will be running and DFCIL will also offer this what is your stock and all that maybe or whatever charges, Indian railway will run more passenger services. And the number of the quantum numbers are lifted with there of the number of passengers and most probably the what we told that is in the COVID time, around 90% of the booking is by the online ticketing.
So the number of magnitude of bookings will increase. So the volume will increase and then we intend to benefit from that because of the more number of bookings, so more capacity for the Internet shipping. I will ask Catharine also because we're taking another segment and they need also another segment. And what sort of services which will offer, apart from Internet ticketing, lesson capping them their needs. So all these things will be intense benefits, so that will be beneficial to us in the long run.
It would be fair to assume that with the dedicated freight line and the line, The overall trend speed should move up and therefore you know your double time
Yes, very correct. So there is the Now there's almost a route that's fluctuation in the route. So once this I mean this is freed, I mean the more and the trends will be run at a higher speed. And of course, I mean, it's more normal of the end to end, so whatever the services,
And behaviorally, Is it a good assumption to make that as your travel time shortened significantly for shorter distances,
It all depends Because one is the if you see the geographical location of India, I mean, this and that both end to end, I mean, it's a long distance trends, 1 night, 2 nights and all that. And then of course, the type of trends will be intercity. So both will be the increase, the volume will increase, the number of accidents will increase. So I mean this is not that it will be a real shift from immediately from the train to I mean the roadways. So for example, from Delhi to Lucknow, we told you that or we will let it from Mumbai to Ahmedabad.
The only the roads are in a very good condition. I mean the people have their own cars and all that. But still and the railways also running the trains And we are running in the private train that is from Lucknow to Delhi and Mumbai to Ahmedabad and we are running on This is on profit. I mean,
this is a
except for this COVID times, of course, then we had to stop due to the low occupancy. Normally, there is
a Sir, one last if I may quickly squeeze in. I would like to understand your 2 year vision or outlook for what are the non core services today, but you have more optionality like having your own wallet or payment gateway or insurance and things like that. Is there any optionality significant profit optionality in any of these? Are you looking for that for the next 3 years?
Yes. Payment gateway of course we are very fierce. We already have IPI in Muthraj also we already have. We are in a Currently, we have what there is a license we have to take it from the RBI. The board has already passed and we are applying for that.
And then, Joss, we would like to I mean, this one of the great what you said, the mover here in the payment gateway segment. And we will try to have the more number of many of the state governments not have this discount, that we want to cater to that. And of course, then we keep on expanding as a demand. So yes, that will be one of the more non core areas which will have a which will give the good profit margin in the years to come. And how about the wallet service?
Quiet service also the same thing. We are I mean, it's serious on both. We already have the And we are trying to I will get into some market And already this what you say the if you see the percentage of revenue, which is the one This is one from the core data center and the non convenience fee also. So we have the co branded card and there's a proof of the SBI. So we need to be intend to get something from here from ad, something from this wallet, something from the payment gateway, So these are all the segments which will keep on adding up our revenue.
So the co branded Star City Wallet rather, do you intend to build this as a offering beyond bill base
as well? I mean Yes, yes, yes, of
course. That is
the intention. We want to I mean this is one of the features because you online for the railway. And we have been given this license to I mean this for the air ticket also. If you see this, we are the lowest I mean, the lowest service charges for the And those passengers who want to have a flexibility of this The railways as well as Syopetim in this journey through the Airways. So we are the one who can provide a very good solution.
And of course, the last in connectivity and all that we are trying to fix off. So this will increase only.
Sure. Thank you
so much, sir. I will update. Okay.
The next question is from the line of Priyank Jada from SunTrust. Please go ahead.
Yes. Hassane, just wanted to understand the update on railway privatization agenda and how IRCTC is
going to participate or benefit? You see that the Government of India for the first time had come out with the We are serious bidders because we are the only entity. I mean, apart from in the railway who have the experience and expertise to run private trend. We already run, of course, I mean, at times we will train the 2 trailer streams and one overnight is Smart Oil Express we run. Apart from that, the tourist trends and all that this Marajah and all that we have experience of running.
So we are very serious here. And then just out of 11 plus plus, 10 plus we have qualified on our own. I mean this of the classifications do not qualify because of networks and all that because of stringent criteria. But out of 11% we have qualified. Our support team or the consolidated support team in house, they are I mean this I mean on job.
And in the middle of which I would defer this what you said is the bidding for the next 2 months. So we are very serious on this and we will be a active participant and active player in this field. And the way in which we have seen the adjustment Because you see the in India, the passengers of mobile, I think, what you say, the passengers to the highest passenger, They want to pay, but
they want a good position.
So in the Asia
space, though our what is
better fare is slightly 10%, 15% higher than the Indian And if you will be surprised to note that in from Ahmedabad, Mumbai, 30 minutes before our stages and 30 minutes after our stages. I mean the 2 trends of linear railways are running and we are a silage between them And we are seeing the running profit, I mean, from day 1, I mean, we had thought earlier that from next 1 year after 1 year, 2 years to simplify we will breakeven. But the I mean whatever the slight publicity, slight marketing, but Day 1, we started on the business in a profitable segment. And then Day by day, the occupancy increased and we also started taking the feedback from the passengers and we tried to Take it to level and I will I will be surprised to know that level of substance, level of food and level of catering and level of what's your illness regimen and all
that airlines.
I mean this is the comments of those type of passengers. So therefore there is a I mean this is definitely of this amount of domestic passengers who want to pay slightly higher but want the premium services and we are ready to cater to that.
So, sir, just to add
on this discussion, do we plan to add more stages
This is this has to be decided by the Ministry of Railway. We have asked for it, but we don't know the response to the Ministry of Railway. Maybe that if the private trends are running in operation, they may not, I mean, just to give the license for more tests and carry up to them. But we are open for both because there is a real demand and supply gap and which is the safety sector having so much of the betting list and all that. So we are ready for both.
We are geared for both. We are already in the top of this regarding this So how this is the lease financing and the rates and all that we will take. Private trends also this on page 10, we are open. We are open for both whatever is the company, whatever profitable, we will take it. And according to us, both are profitable venture.
Thank you. Next question is from the line of Hams Shah,
Just a minute. Just a minute. So what you see, as of now, the Internet booking Suppose this number, I just trend it like this, but more number of AC trends will be there, more number of facilities will be there. So certainly, the revenue is a that is a convenience fee will increase from INR 15 to INR 30. So in the etcetera more so and magnitude also So we're trying to gain by the more number of AC coaches.
Okay. Okay.
Thank you, Steve.