More Smiles Per Mile
Total Page:16
File Type:pdf, Size:1020Kb
TERIN CA G More smiles per mile TICKET E- KAG AC ED P W A T E R TO U R & Indian Railway Catering and Tourism Corporation Limited T R (A Govt. of India Enterprise-Mini Ratna Category-I ) A V E L 21ST ANNUAL REPORT 2019-20 Contents Corporate Overview 02 IRCTC at a Glance 04 Leveraging our strengths 06 Chairman’s Message 09 Touching millions of lives 10 Scaling Up: Our Financial Highlights 12 An Overview of our business 14 Our Business Segment – Catering 16 Our Business Segment – Internet Ticketing 18 Our Business Segment – Packaged Drinking Water 20 Our Business Segment – Travel and Tourism 22 Awards and Recognition – Our greatest laurels Scan QR code 24 Profile of the Board of Directors to read more To know more visit about us www.irctc.com 27 Corporate Information 29 Ten years Financial Highlights Statutory Reports Chairman’s Message 30 Directors’ Report 63 Management Discussion and Analysis We believe, our agile and dynamic business model, our ability to constantly innovate 80 Report on Corporate Governance and expand our operations played a crucial 112 Report on Corporate Social role to instil faith and trust in our company, Responsibility (CSR) and projecting us as a reliable entity among the Sustainability investor community. 120 Business Responsibility Report (BRR) 134 Dividend Distribution Policy Page 06 138 Extract of Annual Return Financial Statements An Overview of our business Touching millions of lives 161 Independent Auditor’s Report 172 Balance Sheet We are adamant about our Over the years, we have 173 Statement of Profit and Loss preferences to maximize diversified our service offerings to enhance customer delight 174 Statement of Cash Flow customer convenience while ensuring utmost comfort. and provide an unforgettable 178 Accounting Policies as per Indian experience to travellers. Standards (Ind AS) Page 12 Page 09 237 Comments of C&AG of India For years, we have kept our customers at the core of our success, designing and delivering services that encompass a vast array of travel needs. From ticketing to catering, from holiday packages to accommodation facilities – we’ve got it all covered. We understand the needs of our patrons and are consistently focused on setting new standards of efficiency and ease. With a plan to maximize convenience while ensuring utmost comfort, at IRCTC, we have discovered gateways to delight- to cater and curate memorable travel experiences. At IRCTC, we are guided by our zeal to assure safety, security and punctuality – touching lives across social divides and geographical barriers. As we take strides to set new standards and embark on a new journey, we remain dedicated to our loyal customers – to always serve as a preferred travel partner, delivering More smiles per mile! Indian Railway Catering and Tourism Corporation Limited IRCTC at a Glance Indian Railway Catering & Tourism Corporation Ltd (IRCTC) is the only entity authorized by Indian Railways to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. Established in 1999, as an extended arm of Ministry of Railways, it was developed to upgrade and professionalise catering and hospitality services in Indian Railways as well as to promote domestic and international tourism through development of budget hotels, special tour packages, and global reservation systems. We are a one-stop solution for travellers, offering a wide range of services including catering, travel and tourism, internet ticketing and packaged drinking water. Vision To be the leading provider of high quality travel, tourism and hospitality related services for a range of customer segments, to consistently deliver outstanding customer satisfaction. Mission IRCTC aims to establish itself as a leader in the area(s) of hospitality services, Travel and Tourism, packaged drinking water, and Internet Ticketing by providing value added products and services for passengers, tourists and other customers, targeting IR and Non-IR related services alike and building a resilient business portfolio that is scalable and based on core competence. 02 Corporate Overview Statutory Reports Financial Statements Our service offerings Catering & Hospitality Internet Ticketing Travel & Tourism Packaged Drinking Water (Rail Neer) Key facts about IRCTC Mini–ratna 31.4 www.irctc.co.in India’s (Category-I Public Average transaction is one of the most Only authorised entity Sector Enterprise) volume per month in transacted websites in providing online ticket Status conferred by the FY 2019-20 (in Million) the Asia-Pacific region booking and catering services Government of India, on for passengers travelling by May 1, 2008 Indian Railways 1446 111.92 times 27.93% Most successful IPO Employees IPO overall CAGR growth in PAT in the last two fiscal years in subscribed between FY 2015-16 terms of overall subscription to FY 2019-20 and the best performed IPO in respect of PSUs 11.49% Debt-free CAGR growth in Revenue Company as on between FY 2015-16 to 31st March 2020 FY 2019-20 03 Indian Railway Catering and Tourism Corporation Limited Leveraging our strengths Diversified portfolio Authorized Entity Sustainable business model Apart from having a dominant We are the only entity IRCTC has a track record of market share in Indian authorized by the Indian delivering consistent growth Railways, we have diversified Railways to provide online in revenue and profitability. our offerings by foraying railway tickets, catering On the back of favourable into non-railway segments services to railways and regulatory policies and including air ticket booking, packaged drinking water at growing passenger traffic, e-catering, tour packages, railway stations and during our top line and bottom line executive lounges and train journeys. are expected to witness budget hotel booking. Our sustained growth in the long- endeavour is to be a one- run. stop-solution for all types of travel needs and be the preferred travel booking partner. Our top line has grown at a CAGR of 11.49% over the past five years while our bottom line has registered a CAGR growth of 27.93% during the same period. 04 Corporate Overview Statutory Reports Financial Statements Attractive financial Robust balance Strong governance matrices sheet framework Over the years, we have For years we have aspired to maintain healthy Our operating implemented systems and ratios through a prudent risk cash stood internal control procedures management and capital to enable adherence to allocation strategy. at J 597.39 regulatory frameworks and Crores as on assure greater transparency Our RoE and across organizational 31st March verticals. It has empowered ROCE as on us to strategically sustain 2020 the foundations for strong 31st March performance while building and the fact that we are a bonds with internal as well as 2020 stood at debt-free company validates external stakeholders. 39.81%. our financial discipline. The strong balance sheet also enables us to meet our short- Experienced Board term obligations, execute and management our strategies & growth plans and navigate through The multi-sectoral experience uncertainties and cyclic and the deep domain slowdowns. knowledge of our senior management guides us to chart new trajectories of growth and provides direction to tide through tough times. It is the strength of our leadership that helps us to retain our competitive edge and consistently unlock opportunities for future success. 05 Indian Railway Catering and Tourism Corporation Limited Chairman’s Message Our IPO received spectacular response and we are absolutely thrilled to share our very first annual report after our successful listing at BSE and NSE. Growth in operating revenues in FY 2019-20 by 21.68% over FY 2018-19 06 Corporate Overview Statutory Reports Financial Statements Dear Shareholders Fiscal year 2019-20 was a milestone follow safety protocols and have provided year for us at IRCTC. Our IPO received adequate training to all our employees, spectacular response and we are prioritizing their safety and well-being absolutely thrilled to share our very first while ensuring business continuity. We launched the annual report after our successful listing at Further, a detailed Standard Operating first corporate BSE and NSE. One of the most successful Procedure (SOP) is being prepared with IPOs in over 20 months, it was subscribed a strong emphasis on automating manual train in FY 2019- more than 112 times. We believe, our agile processes. and dynamic business model, our ability 20 making us the to constantly innovate and expand our In a dynamic and fast-paced environment, operations played a crucial role to instil we recognize the need to be future- first company faith and trust in our company, projecting ready and rely on advanced technology us as a reliable entity among the investor to ensure smoother and seamless to do so in the community. operations. We have also adopted AI (Artificial Intelligence) powered chatbots Indian Railways Trade conflicts and political uncertainties to redress customer grievances. resulted in significant economic volatility Further, we intend to introduce robotic network. and considerably affected global trade process automation to simplify repetitive share across segments, driving innovation and investor confidence in the last fiscal. and complex processes like Invoice and capitalizing on opportunities to deliver This, coupled with the Covid-19 pandemic Generation, MIS Reports (daily, weekly and differentiated services. We also launched