Dear shareholders, good morning and warm welcome to you all to the 21st Annual General Meeting of IRCTC Limited through video conferencing or other audio vigil facility. As a reminder, for the smooth conduct of the meeting, the members will be in the mute mode and audio and video will be opened when they will speak at the AGM as for the pre registration. Please note that as for the requirements, The proceedings of the Annual Journal Meeting will be recorded and available on the website of the company. I now hand over the proceedings to Ms. Sumant Kalra, Company Secretary of IRCTC Limited.
Good morning to all of you. Dear shareholders, I, Suman Kalra, company secretary of Indian Railway Catering and Tourism Corp. Limited extend a very warm welcome to all of you for this 21st annual general meeting of the company. As you are all aware that due Due to COVID 19 pandemic, this agent is being held through video conferencing in compliance with the applicable provisions of the company's act, journal circulars issued by Ministry of Corporate Affairs dated 8 April 13th April 5th May 2020 and SEBI LODR Regulations 2015. Further, all efforts have been made by the company to enable members to participate and vote on the item being considered in the meeting.
The registers are open for inspection as per the requirement of strategy. Now I take privilege to introduce Board of Directors Your company. We have with us mister Mahindra Pathman, chairman of your company, Shri Ajith Kumar, Director of Finance Shri Mene Srivastava, Government Nominee Director and Chairman, Stakeholder Relationship is attending a meeting from Ministry of Railways, New Delhi. Miss Seltadesh Wade, independent director and chairperson audit committee, She is attending meeting from Bhopal. Miss Wagner mister Nathan Jain, statutory auditor from Delhi mister Amit Agarwal, secretary auditor, attending meeting from Delhi Shrimati Balika Sharma, scrutinizer for the AGM, attending meeting from Dominique, Delhi.
I now request chairman and managing director of your company to address you all.
Very good morning to all of you. Dear shareholders, as per the requisite forum for the Annual General Meeting I call the meeting in order. I welcome you all to 21st Annual General Meeting with the permission of shareholders. The notice convening the Annual General Meeting and Director's Report already submitted to you are taken as read. I would also take the opportunity to brief our esteemed shareholders about the performance of our company.
Dear shareholders, It gives me immense pleasure to welcome you all to the 21st Annual General Meeting of your company and share a glimpse of remarkable journey. IRCTC has traversed in the last fiscal year. On behalf of Board of Directors of IRCTC, I thank you all for joining us today for the Annual General Meeting. Your presence is indeed a true testimony to your involvement and support for the We shall successfully completed a momentous journey of 21 years serving the society at large and rail passenger in particular. I trust your family and you are keeping well with well through these testing times.
I also pray that in the midst of this COVID-nineteen pandemic, you and your dear and dear ones continue to remain safe and healthy. Today, almost every Countries in the world is feeling the devastating impact of COVID and collateral damage has it has caused to live health and economy. In the unprecedented and challenging times, we stood as 1 nation in the fight against pandemic. IRCTC provided all possible assistance to the central government in serving under privileged section of the society. Despite huge constraints during lockdown, our CTC distributed more than 21 lakh meals to the needy people across country in close coordination with local administration, NGOs and railway protection force from it, 30 plus kitchen units spread across India.
I assure you that your company is fully prepared to gradually commence its business activity by adhering to all safety, health protocols issued by the Government of India. The management has already adopted itself to the new normal and taken necessary steps to ensure a smooth operation as our workforce has already been trained for serving the customers in these difficult times. We are fully confident that the feedback from our valued customers will help us to forage and enter into the new normal for hospitality sector in the post COVID-nineteen scenario for you. Over the last two decades, IRCTC has grown many folds from a catering and tourism company to a full fledged travel, tourism and hospitality there, offering a host of products and services to customers with entry in uncharted territories of growth in new business segments such as corporate train operation, e commerce in form of payment gateways and e wallet, whose business data and website monetization. The confidence and faith of Investors in your company was seen by all when IRCTC went public in 2019.
It became one of the best performing IPOs among the CPSCs, with an oversubscription of around 100 and 12 times with more than 100% return to investors on the very first day of listing in the stock exchange of the country. Company has witnessed multidimensional growth and achieved path breaking success during the year under review. I consider it an honor to present the outstanding performance of your company once again. The company's financial statement for financial year 20 along with directors, auditors and CAGs report have been circulated to you. With your permission, I take them as read.
I am happy to inform that fiscal 1920 was a year to be inscribed in golden letters for our IRCTC and has witnessed a host of achievements and milestone in various spheres various spheres of business of the company. The turnover of your company increased by 21.68 percent, rising from INR 1,870 crores in 18/19 to INR 2,270 IN 19 20. Profit before tax of the company increased by 55.75 percent from 478.56 crore in the previous year to 745.35 crore in the fiscal 'twenty. Your company recommended the highest ever dividend of INR 200 crores, including in dividend of INR already paid to shareholders in March 'twenty for financial year 'nineteen-'twenty in compliance of Deepgram's guideline on capital restructuring. In catering segment, CTC managed onboard catering service centers in around 417 passenger trains, including the Azani, Shabadi, Duronto, Tejas, Gatiman, Vandevarat and other meal experts.
With commissioning with the commissioning of 16 food plaza and 40 fast food units during the year. Operational catering units across Indian railways reached to 293. On the eCatering front, your company's performance has scaled new heights with the 21,571 meals being ordered by the passenger in average on daily basis. The total production of railcarneal plant grew by 27.91% in 'nineteen-'twenty as compared to previous year, which has been very remarkable. CTC's real lead factor drinking water caters to 55% to 60% demand of Indian railways.
Company has 14 operational real new plants at present in Delhi, Patna, Palur, Ambar Nath, Ameti, Parthala, Velasco, Sanang, Hapur, Mandeep, Nagpur, Jagi Road, Javalpur and Sankar. Of these, 9 plants are being operated under PPP. Company has also planned for setting up 2 more plants at Bhonseshwar and Simadri near Vishagaporta. In travel and tourism, today, IRCTC is one of the leading travel and tourism companies in the country with a host of tourism products and services, capturing to diverse tourist segments. CTC being a travel and tourism arm of Indian Railways, specializes in rail based tourism and has always been a market leader in this segment.
Today, IRCTC operates Bharad Darshan trains for the budget segment travelers, dealers cruise train for mid segment tourists and Bharadjas Express for the Luxury Circle. In the fiscal 19, 20, IRCTC took over the operation and management of Golden Chariot Luxury Train from Karnataka Tourism Development Corporation Limited, which is set to restart the operation of train in January 21. Besides rail tourism, company has diversified into various other tourism businesses for increasing its presence in online travel agency market as a full fledged OTA to increase its share in fiercely competitive tourism market, that is international and domestic air packages, land tour packages, hotel booking, customized and LTC tours, event management, etcetera,
through www.irctctruism.com.
IRCTC also offers ForEx, Visa and overseas insurance services. It gives me immense pleasure to inform that IR CTC for the first time ventured into the business of private train operation with Ministry of Railways entrusting the project of operating 2 rates of Tejas. IRCTC accordingly started the operation of our CTC Tejas Express on Lucknow Delhi, London Road and Ahmedabad, Mumbai Ahmedabad Road. Both the trends have been received very well in the market due to level of services and punctuality. For the overnight private passenger train, Kashimakaal Express on the Varanasi Indore route that also commenced operation last year in the field of last year.
In the field of Internet ticketing, e ticketing booking through the irctc On an average, more than 8.25 lakh tickets are were booked daily through IRCTC's website and mobile app during last year. Your company has levied a convenience fee on eticket booking from 1st September 2019 at the rate of rupees 15 and INR 30 per ticket for non SE and AC classes respectively. Charges are exclusive of GST. New initiative of company included CAPTCHA based login, railway complaints or registration by dialing 139 and rail IRCTC also collaborated with National Disaster Response Force for providing e ticketing services to its personnel. The other major achievements in the field of non railway detecting business was launch of Ibay payment gateway for internet detecting and development of a new user interface of IRCTC via the net mobile app on Android platform.
We at IRCTC have the aim of corporate governance by ensuring fairness for every stakeholder that is customer, Investor, Vendor, Partner and Community. I am pleased to share that your company has received excellent rating on compliance of corporate governance for the year 20 19-twenty by Department of Public Interest. As stipulated in the guidelines issued by DB, a separate section on corporate governance has been added in the Director's report and a certificate regarding compliance of conditions of corporate governance has been obtained from practicing company secretary in addition to Secretary Allard. The CSR policy of the company is aligned with the national focus on all inclusive growth DPE guideline on CSR and Company's Act 2,030. To support the nation in these trying times of COVID 19 pandemic, company has contributed INR 20 crores to the P&K SVOD, including INR 28 crores from CSR budget.
The company employee also contributed one day of their salary to P&K Osborn in the fight against COVID-nineteen. Before I conclude, I would like to express my sincere gratitude to all of you, the esteemed shareholders, for your confidence and valuable support to the Board of Directors and to the company as a whole and also being witness to this area. I'm sure that you will continue to show your confidence and trust towards us as an organization which will enable us to scale new heights in business. I'm grateful to agencies and institutions from Government of India, particularly Ministry of Railways, Ministry of Tourism, Japan Ministry of Finance, SEBI Stock Exchanges, BSE, NSE, Department of Public Enterprise, Zonal Railways, Statutory auditors, Secretarial auditors, Comptroller and Auditor General of India, all state government departments and our partners for their continued guidance and support to the organization. I thank all my colleagues on the Board for helping me in creating good governance culture across the organization and fulfilling the responsibilities of the Board.
I would like to place on record the sincerity, hard work, commitment and dedication of entire CTC team, which has enabled us to grow in multiple directions as a travel and hospitality company. I seek your continued support in making the company more sustainable and resilient to external challenges from time to time. I take this opportunity to thank all the other predecessors for bringing and providing invaluable support.
We are pleased to inform that independent auditors report is not modified one. With the permission of shareholders, I would read extracts of 1st and last pair of independent auditors report. As per the auditors report, in their opinion and to the best of their information and according to the explanation, The financial statements read along with audit report gave a true and fair view in conformity with the Indian accounting standards prescribed under Section 133 of the Act read with relevant rules. The last part of the report is with respect to the other matters included in the auditor's in accordance with the relevant rules confirming that the company has disclosed impact of pending litigations on its financial position, has not entered into long term contracts, including derivative contracts, and no amount is required to be transferred to IUPN. I will now read out the process for voting through electronic voting system in support.
In pursuance of regulation 44 of IR reputations 2015 and section 108 of the company's act 2013, the remote emoting facility was available from 9 AM on 24th October 2020 up to 5 PM on 26th October 2020. Those who have not cast their vote The remote devoting process have been provided the facility to cast votes through Insta poll, which will be made available on the video conferencing screen and will be once the Instapol is announced. As for the notification dated 19th March 2015 of Ministry of Corporate Affairs, shareholders who have Miss Balika Sharma of Mrs. Balika Sharma and Associates, company secretaries, has been appointed as a scrutinizer to scrutinize the remote emoting process, including voting through electronic voting system. The results of voting along with scrutinizers' report will be available at the website of the company www.irctc.com.
Now I request the chairman for further proceedings.
The polling process is open since the start of the meeting and will close after 15 minutes on the conclusion of this meeting. Those who have not cast their votes may exercise their voting right. Now I would request company secretary to read out the agenda item of the meeting.
I will read out the items of the business of the AGN Now, ordinary business. First item is to consider and adopt the audited standalone financial statement of the company for the financial year ended March 31, 2020 along with the board's report, the report of auditors and commence of CAG of India thereon. 2nd item is on dividend. To confirm the payment of interim dividend of INR 10 per share amounting to INR 1.60 crores and to declare a final dividend of reached 2.5 per share amounting to INR 40 crores or 16 crores equity shares for the financial year 2019, 2020. 3rd item is to appoint a director in the face of Shrimati Rajni Haseja, director of tourism and marketing, who retires by rotation and being eligible offers herself for reappointment.
Item number 4 is to take note of the appointment of missus Pia Mehra and Company statutory Reuters for the financial year 2021 appointed by CEO of India via this letter dated 10th August 2020 and authorize the Board of Directors of the company to fix their The resolutions are resolved that pursuant to section 1395, read with provision to section 12, 140 or reenactment thereof for the time being enforced, the appointment of PR Merrill and Company, Chartered Accountants BN is thereby noted. Resolved further that Board of Directors of the company on the recommendations of audit committee B and S hereby authorized to decide and fix the remuneration, including reimbursement of out of pocket expenses in connection with the audit work to the statutory auditors appointed by CEH of India for the financial year 2021. Now we come to the special business. Item number 5 is 2.3, Vinesh Srivastava, As part time government director on the board, the resolution is resolved that pursuant to provisions of section 149, 152 and other applicable provisions, if any, of the companies at 2013 rules made there under Srinesh Srivastava, EDPSU Railway Board, who was appointed as part time government by the President of India by Ministry of Failure's Letter dated 18th March 2020 and subsequently appointed as an additional director by the Board of Directors with effect from 20th March 2020 to hold office up to the date of this AGM in terms of section 1 61 of the company's act 2013 and in respect of whom the company has received a notice in writing under Section 160 of the company's act of 13, B and S hereby pointed as part time government director on the board of the company liable to retire by Item number 6 is to point Shriya Jeet Kumar as the ex finance on the board of the company, resolve that pursuant to the provision of section 149, 152, 160 and other applicable provision of the company's act, Shri Ajith Kumar, who was appointed as director for us by the president of India Ministry of Railways DETA dated 29th May 2020 and subsequently in terms of Section 161 of the Companies Act 2013, appointed as additional director, director of finance by the Board of Directors with effect from 29th through 2020 to hold office up to the date of this AGM and respect of whom the company has received a notice in writing under Section 160 of the company's Act B and S, hereby appointed Director Finance on the Board of the Company, Libertio and Advertising.
I now request chairman and other directors to answer the queries of shareholders relating to items of business.
To ask questions and have joined as shareholder speakers to raise their queries, if any, relating to items of business as mentioned in the office of Annual General Meeting. I also invite shareholders to post messages on the communication box Hello? Available on the screen to each member participating in the meeting, which would be replied suitably.
Operator, you may go, you may allow, you may now go ahead.
Sure, ma'am. I now invite Mr. Yashpal Chopra, to unmute his audio and video and ask the question or give comments. In the interest of time, may request you to kindly request your questions or comments to 3 minutes only. Sir, your line is on mute, sir.
Mr. Chopra, your line is on mute. If you could kindly unmute your line. Mr. Chopra, can you hear us?
Sir, your line is on mute, sir. We are unable to hear you. We will proceed with the next shareholder as we check the connection with mister Chopra. I now invite mister Jasmeet Singh to unmute his audio and video and ask or give his comments.
Hello, everyone. I am Dushmit Singh from Delhi, representing a couple of other investors to read our common note. Respected Chairman, Sheri M. P. Mall Director, Tourism and Finance, Rajnish Hasidhaji Director, Finance, Ajit Kumar, Company Secretary Sumanjit, Other Board of Directors along with my co shareholders.
A very good afternoon to you all. To begin with, I'm happy to note that all our IRCTC employees and their family members are keeping safe and fighting. This being the 1st Annual General Meeting of our company after it has become public was expected to be conducted in some auditorium, but due to current pandemic, it's taking place through video conferencing mode, which is fine. However, Coming here onwards, presuming it will fall back to normalcy, we and other shareholders expect the Company to like India Habitat Centre in the heart of Delhi. While the IPO price was INR 320, October, It was happening surprising to see our share price achieving new peaks month on month.
Now And in no time, our share price grew 6 folds of the IPO price, which was nothing but a reflection of Increased confidence in the minds of the investor community who visualize our company to grow at much faster pace and what we perhaps did during last many years. But today, our share price is most expensive amongst the PSUs, which in some way is discomforting. So instead of worrying, I would like to bank on the faith in my management to deliver positive results continuously quarter on quarter year on year. And so I look forward to our leadership team to not only guide the existing verticals of organic growth, but at the same time to add into our revenues and existing portfolio for inorganic growth. While, Chairman, sir, in addition to the 250th exhaustive annual report, you have elaborately presented the company working, which more or less has covered all facets of our working.
I have we have couple of points to raise here, Ander. 1st, given the government initiative to privatize The operations of certain trains, how fruitful our experience has been running Tejas trains on top of routes. How exciting is this new domain. Given the poor image of services provided across the trains in India, We actually need privately managed trains at large in India. But do we have the adequate resources to participate and turn this into a larger pie, equaling profit earned through our various verticals such as ticketing, catering or through rail need
or say
hospitality. Please appraise. 2nd, while we all pray to the God that this COVID kind of situation do not ever happen again in future, But at the same time, may I request you to share our preparedness on how to negotiate the current pandemic from our business point of view if it continues for many more months. Further, Thank you, Chair, for closing the final dividend in addition to the interim dividend already paid by the company. On corporate governance, I would like to thank finance and secretarial team led by Shri Ajith Srivastava, now Shri Ajith Kumar and Madam Sumant Kalra, who are working very hard to maintain high standards of corporate governance.
We would like to acknowledge the hard work To end, we wish the entire IRCTC team all the very best. Thank you.
Thank you,
mister Singh. We will now proceed to the next questioner. I now invite Mr. Yashpal Chopra to unmute his audio and video and ask his question or give his comments.
Honorable Chairman, sir, I am very, very much proud of the team you are holding it around you, sir. Sir, our company, which has done fantastically very well during the last 21 years. It was established on 21 September 1999. And now after 21 year, the company which was established with only 20 crore visas capital that has now a big ocean, having a 20,000 crore capital base. So that is a big, big achievement of the company.
So I must congratulate the management and the team over there. Sir, I must congratulate you for the success of IPO. That was a record subscription and the listing gains were fantastic and the people have been very, very happy with the performance of the company and the company's performance has been excellent since the maiden performance and there has been all around growth in revenue, PBT, PAT, EPS And even the dividend declared and paid to the shareholders, that is handsome and that shows your investor friendliness for the shareholders. So we are very much proud of you, sir. Sir, the main thing for which I'm proud of the company is that the noble products the company has taken, the product of Catering, the product of ticketing, the product of convertible journeying in the rail.
I remember those days in '90s when there was such a big, big record of what's going on between the And ticket clock and those, I call media men, those brokers and all that and the people who are just in need of one ticket, They had to wait for hours and hours and hours and even I saw the people just sleeping with their numbers on this statement by just getting the booking on the next day and within 15, 20 minutes that booking was over and when the policeman over there, they said go to that shop over there in front of the station. You will get the ticket for any station, any destination, any class, Any rail, everything is available over there. But over here, nothing because that was the corrupt time of Mr. Narsimha Rao And everything was just scrapped at that time. So by establishing this company, you have done a big, big blessing on the commuters.
Now the commuters are just blessing you for the comfort you have given to them. And sir, once the people will get these data their trade ticket, The race, whenever that would come to the platform, that was just in the shabby condition and people would rush into their seats And they would clean the suit with their uniform, whatever they were wearing it. So there was no concern for the cleanliness at that So now you have just changed the atmosphere. Now the atmosphere is that of Sir Chabarat and that you are meeting the dreams of our Prime Minister. Sir, Even while when the people were just asking for the food and all that, most of the complaints in the complaint book, you can see the old record, That was on the quantity and quality of the food and the people were just repenting why they had just eaten that food And most of the people are taking the food from their houses, from their places, or from the hotels around their station and all that.
So, sir, you have just given this, this is a very, very big blessing, you have said. So I say that the product from we have chosen that is excellent. And I know that people can afford any kind of amount if we can get a good service. And you have just established even the private rail along with this government rail. So that is a big thing.
Those people who do not want to travel by air, They can enjoy those that air facility in those smart rails. And Smart goes with the Aerosys. Now you're going to provide Aerosys. That means you will be giving the filling of the airbags also. So we are very, very much proud of you, sir.
Sir, now the time sometime the query comes That's why I should ask for the performance of the company during 2021. But at the same time, I know that 2021 First half year has been marked badly by this pandemic pandemic COVID. And as our complete deals with only the human mobility And all the human beings, they are just within the 4 walls of their houses. They have to move out only out of the domestic. So that means When this climate of COVID will go away, only then I can expect Normal resumption of the due of the performance and only then I can expect it.
But I know That from your side, from the company side, the infrastructure is very much solid and very much clean and very much ready to provide all the facilities. So we are very, very much proud of the company. So in the end, I would just counselate all the management, the dedicated service over there and I pray God that let our corporate governance Because that they are doing that lady is doing a fantastic job. She is just answering the queries of the people in such a quick way. So we are very much proud of the corporate governance over there, sir.
And of course, our company, which is Just getting the international line because once the international tourists will welcome will come over here, You are there to welcome them with the hospitality services. I mean, I know this is going to be a very big feather in the name of our country that will advance the image of our country and that will virtually our prime minister is very much proud of This company may be called Navratna or Maharatna in the times to come. So I wish you best of luck to all of you and to our dedicated team from the top to bottom, and I pray God for the safe health and for the positive energy, positive vision. So best of luck to you. Thank you.
Thank you, mister Chopra. I now invite Mr. Lokesh Gupta to unmute his audio and video and ask his question or give comments. In the interest of time, may I request you kindly restrict your question or comments to 3 minutes. Yes, sir.
We can hear you.
Secretarial Department, sir. Secretary Department
Thank you, mister Gupta. I now invite Mr. Ashok Kumar Gupta to unmute his audio and video and ask a question or give comments. In the interest of time, may the question kindly restrict your question or comments? 3 minutes, sir.
Chairman, sir? Are you audible, sir? Yes. Chairman, sir, board of directors and my fellow shareholders,
I now invite Mr. Ramikumar Naredi to unmute his audio and video and ask or give his comments. In the interest of time, may I request you to kindly restrict your question or comments to 3 minutes, please?
Am I audible?
Yes, we can hear you. Yes.
So good morning, management And my first question is currently government of India hold 87.4% stake in IRCTC And you recently appointed merchant bankers for offer for sale for a period of 3 years. So what is your plan about this? And the reason I'm asking this question is, recently, one of the PSU company came up with the OFS. And after that, the price came down to 50%. So My single concern is whenever you plan the offer for sale, plan it properly, keeping in mind the interest of small shareholders.
My second question is, as per the current circumstances, I know it is very uncertain, but I just want to ask by when we will reach to pre COVID levels? Thank
you. Thank you, mister Naredi. I now invite mister Jay Abhishek to unmute his audio and video and ask your question or give your comments. Would request you kindly restrict your questions or commence to 3 minutes, please.
Yes, sir. Can you hear me, sir? Am I audible?
I can hear you. Yes, sir.
My name is Abhishek, shareholder of the company. My DP ID, IN 301637 and line ID is 4,135,915. First of all, I Congratulate the management on the year of 21st Annual General Body Meeting and the 1st Annual General Body Meeting after the IPO. Sir, unfortunately, we do not meet face to face this time, but hope to see you in the physical ATMs next year. Sir, we thank the management for having declared a very good final and interim dividend during the year.
You understood the pain of the shareholder they are going through in this pandemic situation, and you have supported the shareholders by giving a very good dividend. So I would like to appreciate the management for that and hope that company will continue giving such dividends to the shareholders in the coming years also. And Page number 40, sir, I can see that our details pertaining to Bharaja Express is being Given that we can see only 1,074 tourists avail services in 2019, 21142 tourists in 32 trips than they are well in the previous year. So the number of such a good initiative and a Fantastic project by our IR CDC, but we can see the number of tourists in this particular trade have very less. So I would request you to kindly give discounts and regular cashback offers and vouchers to the tourists so that there's more a small number of tourists can join in this particular Maharaja Express.
And I would request you to kindly arrange a visit in the Maharaja Express for the shareholders, exclusively for the shareholders on one particular day by intimating all the shareholders and interested shareholders can run up and also at a discounted price for the shareholders, I would request you to please arrange this particular clip. And, sir, overall basis, the coronavirus and subsequent lockdowns have left virtually no industry untouched. And I think even our industry is being affected very badly in the Spark 6, 7 months. So Any employees we have sagged, higher salary cut in percentage, if any, during this particular pandemic? I would like to know from you, sir.
And What is the view of the management going forward? Sustainability of the profit earning growth are going to remain challenged in the coming quarters. And Sir, I would request you to please take part in the investor relation exercise like all quarterly presentations and meeting global investors on a regular basis, so that this will increase the number of investments and we can see a good appreciation at the share price. Already our company has given us a very good share market, but hope that in the coming future also management is going to give us a Same return in the year to come. And nothing much to answer.
Hope to see you in the physical area next year. I wish the company and the board of directors a success and prosperity in the coming future. Thank you for giving the opportunity, sir.
Thank you, Mr. Kalra. I now invite mister Santosh Kumar Saraf to unmute his audio and video and ask your questions or give your comments. In the interest of time, sir, I may request you to kindly restrict your questions or comments to 3 minutes, please. Thank you, Mr.
Sarraf. I now invite Mr. Rahul Jain to kindly unmute his audio and video and ask your question or give your comments. I would also like to kindly restrict your questions to 3 minutes, please. Yes, we can hear you, Mr.
Jain.
Sure. Good afternoon to the entire Board members and our My question is, on the report, Priya mentioned that Rail Catering Industry is expected to grow at 7.5 to 8.5 gR over FY 2024 to INR 14,500,000,000 to INR 16,500,000,000 which is quite conservative given the announcement of price increases for both catering segment on onboard as well as KT during the previous fiscal. So can we assume that these hikes in price will not be, implement anytime soon due to COVID factor? And if these are going to be implemented, then when should we, you know, we this happening is the first question. Secondly, You know the significant underutilization of rail near capacity at the moment, We have committed to our plan on building more capacity.
So what is the rationale on this aspect? And lastly, given the current business situation, would not it be better for the company to look for divestment plan much later when financial prospect for the company are far better placed rather than looking for it. I know it's It's not an immediate mandate but just comment on this would be helpful. That's it from my side.
Thank you, Mr. Jain. We now invite Mr. Shripal Singh Monhut to unmute his audio and proceed to ask your question. Mr.
Shripal, can you hear us?
Hello?
Yes, mister Sri. We can hear you now. Yes. We can hear you, sir.
Ravi, Ravi, sir, Mimi? IN300-five thirteen-two seventeen-eighteen-six zero five. Sector department of time for balance sheet for notice Video Conferencing 2nd.
Thank you, mister Shipal.
Thank you.
I now invite Mr. Prakash Janhwalat to kindly unmute your audio and proceed to ask your question. Yes, sir. Yes, we can hear you, sir. IR CDC website I don't know how many languages
it supports, but if it
can support more numbers to languages, it will be very useful.
And On the list, the management for the future
cancellation channels also can be reduced a little bit.
That is what I see. Thanks very much.
At half
the rate during that year and they are enjoying 60 years below half the rate. Today, children obtained books or they have issued a ticket at half the rate without any seat.
Thank you, Mr. Gulit. So that was the last question from the participants.
So I'll address the issues. I mean, first, I'll address the issues raised by individual speakers. And then maybe in brief, I'll comment on the future plans of CTC as somebody was mentioning about diversification and all. So I'll mention that. Coming to Mr.
Jasmeet Singh, he wanted to know about the Operations of private trains, new trains, and for many when new trains, ventures which India is private which Indian railways, we are privatizing. So we started with the private train operation last year that is on first train between Lucknow and Delhi was flagged off on 4th October 2019. And second train was on 17th January between Ahmedabad, Mumbai. 3rd was Kashim Mahakal Express, of course. That ran only for a few trips and this COVID thing came up.
So as per original projections given by consultant and as per demand analysis and market survey done by us. These trends were to breakeven in later part of year 1 or beginning of year 2.
But
with superior service and assured travel time by ensuring Limited refund in case of delayed operation for the first time in India. We could manage our occupancy level and level that Lucknow Tejas was almost breaking even in 1st 6 months of operation, I mean, when the operations closed in March, it was on verge of breakeven. And surprisingly, Ahmedabad Mumbai Tejas, it there was breakeven since Day 1, which was a unique thing which we achieved and we were also surprised. But, yes, during the in that sector, There is demand for travel, for a superior travel, for a better travel. So There is a scope of for such strains.
There is demand for such strains in India. And now that Indian railways are coming out with a big plan for a private chain operation, and we have participated in that. We also want to enter into a big way. So we hope that this segment will be a new the new area for IRCTC. And as on date, in within country, There is no other operator who has any experience of running the corporate train or private train or, train similar to this.
Now, mister Chopra mentioned about of course, he appreciated and then he was worried about worried about performance of 21. Yes. All of us are worried about performance of 2021 because of this pandemic. And our Q1 results are out, and you must You must have seen it for the first time. This was a balance sheet in loss, but I'm happy to share that We may come out of it soon.
1st quarter was pretty bad because there was no train operation for almost 2 months. So as and when gradually as and when this trade operation is Picking up and train movement is picking up. I'm sure we'll also come out of it. Then mister Lokesh Gupta mentioned about the stay arrangement. So this is just to inform that we have already we had Because they are also they approached us.
We in fact, we had a meeting and they wanted us to work on the line of other OTAs and have a tie up with us tie at one agreement with their chapter of North India and a broader agreement was proposed to be signed on 21st January at Jammu, but then it was postponed because of this pandemic coming up. So we have I mean, this is just to keep you informed that we already have tie up with this hotel association and hotel and restaurant association. And their North India chapter, they are signing and The moment situation improves, all these agreements will be finalized and this will be a new business stream from IRCTC. Mister Ashok Gupta mentioned about fast food chains. Actually, these fast food chains are basically set up at the space allocated by rail Indian Railways to IRCTC based on demands of station and demands from customers.
So as and it is allotted, we immediately go for it. Mr. Raveen Aireddy spoke about the plan for divestment. Frankly speaking, sir, we have little say on this. So It's basically decided by Ministry of Finance when and how much to divest.
Now his second query was when would we reach free
COVID levels.
Pre COVID levels, I'm sure, I mean, all of us are suffering from this. Once this travel fear for travel goes away, fear for movement goes away, Then I'm sure once this metro block is removed within 1 quarter, we'll be back to pre COVID levels. Mister Vishay mentioned about capacity of Maharaja, I mean, bookings in Maraja. So I mean, just to inform that this is not a normal train where 1,000 passenger travel. This is a train which has capacity of 74 bus only, 74 cabins, 74 seats in 37 cabins.
This altogether different product, but certainly we'll consider a visit for shareholder and maybe a discounted rate for shareholders Also, we'll work out, sir. You also asked about job cut and salary cut. We are one of the resilient organizations with a very flexible working model. Job cut and salary cut are perhaps the easiest option to save on expenditure, but then it has long term impact on Morale and Culture of the Organization. So we had not thought of it and we have so far managed well.
And in view of future, what we are seeing, I don't think there is any need for this to demoralize our staff because ultimately it is the employee and the staff of the organization who drive the organization. Yes. Some percent privilege cut was done at director's level and GGM's level, which which is not even 1% of the top. When mister Saraf mentioned about bills that we will look into, sir, we'll certainly take care of it. About ticket date change without any cancellation charges on IRCTC Tickets.
This is an issue to be sorted out by Ministry of Railways. We'll approach them, but There is one basic difference, sir. There is a difference between a ticket taken from window and ticket taken from IRCTC that Even a waitlisted ticket taken from a window is considered as authority to travel. And if a person is found with that on that particular train, he is not treated as passenger without ticket. Unlike that, a passenger who is found with a waitlisted ticket issued to our CTC system on that train, he is treated as passenger without it.
Anyway, you have addressed. We will certainly approach Ministry of Relations. Mister Rahul Jain mentioned about hike in prices of catering and under utilization of veneer capacity. Hiking price of catering was to be effective from November 2019 for postpaid trains where food is sold against cash money, which was implemented. And in case of prepaid trains, that is Rajani, Shatabdi, Duran, so this was to be effective from February as advanced reservation for In the meantime, this pandemic, because of this, it could not be implemented.
And we are working with ministry on various models to sort this out. Underutilization of railcar capacity, I believe there is some Misunderstanding because all our plants are running at more than 80 88, 89% capacity. This may have a reason because we commissioned 4 plants in last financial year. And in 1st year of its commissioning, any plant's capacity is restricted to 30%, then it gradually goes up. And 3rd year it becomes 100%.
And Mr. Mani Sundaram mentioned about website being more user friendly. So unlike other websites, I mean, we have certain constraints, Primary constraint being of the huge demand supply gap and the demand supply gap within first 5 minutes of operations starting. That is when advanced reservation starts at 8 to 85, when Tatkali starts 10 to 10:5 and 11 to 11:5. So that is the time when many unauthorized software.
That is what we gather on with many unauthorized agents, vendors, they approach our website through unauthorized software and they take bulk of the tickets, depriving individuals of the ticket. So at times, we deliberately make our sites slower So that these software so to escape the Software. Sometime, I mean, minimum time taken is almost 14? 40 seconds. 40 seconds is before 40 seconds, nobody can take the ticket.
So that is why we have to put and there are a lot of efficient people who can aim to get ticket within 15, 20 seconds. But we put hurdles so that nobody is able to take before 40 seconds. Otherwise, every ticket will be taken away by software. So anyway, still your suggestion is welcome. We'll look into that.
About these cancellation charges you mentioned, yes, is a policy decision to be taken by Ministry of Railways. Then mister at last, Bharat mentioned about various kinds of discount, senior citizen and all that. It's a policy decision to be taken by Ministry of Now these are some of the queries. We have also tie up, we have already mentioned new trends we are entering. So we are trying to diversify more and more.
We have a young team, which has been put on the job. And I'm sure that company will keep on performing good. Thank you,
Thank you very much, sir. We have one question for mister, Yousuv Rangwala. He has now connected. I will add him to screen right now. Mr.
Rangwal, if you could kindly unmute your audio and video and proceed with the question. Would you kindly restrict it to 3 minutes only?
We will be asking same policy and a
good decision for our period.
And I'm very thankful to the first people who have done a very good work
So that was the last question that we had.
Since Q and A session is over, The icon for e voting is available on the screen, which will redirect you on a separate window to the e voting portion Okay, dear. The e voting facility will be active from 11:30 a. M. And will be closed 15 minutes after the closure of the meeting. The results of voting will be declared by 12 hours tomorrow and will be intimated to the stock exchanges also.
Now I would request, Shri Mata Rajni Hasija to give a vote of
A very good afternoon to you all. It gives me immense pleasure to propose the Board of Mines to our Chairman and Managing Doctor. Shri M. P. Maljee, board members of the company, representative of the honorable president of India, Mrs.
Vandana Bhatnagar, and value valued shareholders, statutory and secretarial auditors of the company, NSDL and Corus. I would also like to thank Mrs. Alankid Assignments Limited, the store and share transfer agents of your company. Last but not the least, the entire IRCTC team who has really long hard to bring this company to at this level. Thank you very much.
Thank you, ma'am. Dear members, as advisers scrutinizes, the time for e voting has elapsed, and they are of the view that all members who are participating in the Annual General Meeting have been given adequate time and opportunity to vote at the AGM, and this concludes the proceedings of the AGM. Thank you all for participating in the AGM and e voting.