Wednesday, 2 December 2015

IRCTC beats Flipkart by earning Rs.20,620 Crores

Posted By: Admin

IRCTC beats Flipkart with twice the revenue of flipkart. During March 2015, IRCTC earns a turnover of  Rs.20,620 crores which is twice as online giant flipkart would earn. Last year it posted 34% increase online sale of tickets and made a sales worth Rs. 15, 410 crores. Also it has recorded an increase in profit from Rs.72 Crores (last year) to Rs. 130 Crores (this year).

Sandip Dutta, public relations manager at IRCTC says, "this is possible only due to its interface and setting up of a very robust process. Also capacity enhancement was done to increase online booking from 2000 tickets per minute to 7000 tickets per minute". Due to this improvement 13.4 lakh e Tickets were booked on a single day. Whereas only 27 tickets were booked online in the beginning when IRCTC was started in 2002. Out of all the tickets booked, 55% of them are made through online.

IRCTC beats Flipkart by earning Rs.20,620 Crores

Government is also benefited with this improvement as it results in an increase of 19% of its income with Rs.1,141 crores, which includes service charges on tickets, sales of Rail Neer Water, on-board catering services and licence fees from outsourced catering vendors.

IRCTC's combined income from commissions on tickets, travelling and tourism is Rs.670 Crores which is higher than flipkart's income (Rs. 659 Crores) earned from shipping fee and selling commission on its eCommerce portal. IRCTC's commission is same as that of online eCommerce sites, where their income also includes commission from sellers and income from advertisements on their sites etc.

Devangshu Dutta, Cheif Executive at retail consultancy Third Eyesight says, due to its monopolistic position, with high web traffic and sales. It attracts several brands, food and tourism can use it to advertise or sell their products on the portal.

Amazon has partnered with IRCTC for two years to guarantee of Rs. 18 Crores a year. By Financial Year 2020, Indian eCommerce market is expected to cross $100 billion due to factors such increasing internet usage, discounting and investment by online retailers. It is estimated that their may be 27% upward by e-tail segment, which is $69 billion by Financial Year 2020.

IRCTC is need to be considered an online retail giant with huge cash flows. It has the potential to bring sellers and buyers together to create a market. In fact it is doing so by services like food on track, tourism etc.


Post a comment