Conference call of Indian Railway Catering and Tourism Corporation Limited, hosted by Prabhudas Lilladher Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jinesh Joshi from Prabhudas Lilladher Private Limited. Thank you, and over to you, sir. Thanks, Rutuja. Good afternoon, everyone. On behalf of Prabhudas Lilladher, I welcome you all to the 1Q FY 2022 earnings call of IRCTC Limited. We have with us the management represented by Mrs. Rajni Hasija, CMD, and Mr. Ajit Kumar, CFO. I would now like to hand over the call to the management for opening remarks. Later we can open the floor for Q&A. Thank you. Over to you, Rajni Ma'am. A very good afternoon to everyone. At the outset, let me welcome you all to this conf call of IRCTC Limited for the quarter ended on 30th June 2021. I hope that you and your dear ones are fine and safe in these challenging times. It is good to see that the infections in the country are coming down from the peak that we had seen in the last year, and also in the second wave. Same is the case with the vaccination rate, which is also gradually picking up. As the things are improving, there is an eagerness to travel and enjoy the hospitality facilities is also increasing, which is a good sign for any hospitality company. Although the risk of the third wave is also not very far and not completely behind, too. Hopefully, it doesn't come, but we have to be in the readiness for that. Yesterday, companies had announced the financial results for the quarter ended in June 2021, and the same has been disclosed on both the stock exchanges, too. The board of directors have also recommended subdivision of a company's one equity share of face value of INR 10 into five equity shares of the face value INR 2 each, subject to approval of Ministry of Railways, shareholders and all other necessary approvals that may be required. While the second wave that we know that has impacted the travel and the hospitality industry badly, especially the two months, April and May, and IRCTC was not dispensed off, too. However, IRCTC has been able to demonstrate a resilience with the revenue and profitability once again. Our revenue and the profitability in the current Q1 is not only higher than the previous year Q1. Our revenue is also higher and our profit EBITDA is also higher and the profit after tax is also higher as compared to the Q3 of the last year. This was only for a reference, and our business performances should be compared on year-to-year basis. However, our endeavors to improve the performance will always be on. Q1 FY 2022 saw some surge in the COVID-19 infection in the initial months. The same has been brought under control with the consistent efforts taken by all the states and Government of India. Of course, citizen also contributed to that. We have also seen significant improvement in the vaccination. The number of cases are coming down, in few states are pretty good. However, the third wave of infection and the impact of the same remains still uncertain. As IRCTC, we will thrive to fight out this tough situation once again as we have done in the past five quarters. I am pretty confident that we would come out even stronger than before. I shall now hand over this conf call to my esteemed colleague, our Director of Finance and CFO of the company, Shri Ajit Kumar, who shall brief you about the financial performance of this quarter. After which, the house will be open and the floor will be open for question and answers. Thank you very much. Good afternoon, everybody. I shall first give a brief overview about Q1 FY 2022 result, post which we shall have the question and answer session. Q1 FY 2022 revenue saw a sharp improvement year-on-year at INR 243 crore versus INR 131 crore in the same quarter last year. EBITDA margin continued to make a new high, an increase to 45.8% versus 42.8% quarter-on-quarter and compared to a loss in Q1 FY21. Quarter-on-quarter improvement has been driven by a decline in losses in the catering segment and turnaround of the packaged drinking water segment. Let me now move to the business segments of the company. Different business segments are like this. The internet ticketing segment. This continued to be the most resilient business segment in these challenging times. The Q1 FY 2022 revenue [internet] ticketing came at INR 150 crores, substantially higher year-over-year due to the impact of the pandemic in the base quarter. The revenue declined quarter-over-quarter with ticketing volume impacted by the second wave, which impacted the EBITDA margin, which still came at 77.9%. Next is the catering segment, discussed in our previous earnings call, has been severely hit by the pandemic. While the revenue saw moderation quarter-over-quarter, there was a good reduction in the EBITDA loss to INR 4.7 crores versus INR 7.2 crores in Q4 FY 2021. Next is the tourism segment. Of course, as is the worldwide, this has been the most severe hit of the pandemic for us as well as for the industry. The Q1 FY 2022 revenue saw a sharp decline versus Q4 FY 2021. The segmental EBITDA loss saw a decline quarter-on-quarter to INR 14.5 crores from INR 42.2 crores in Q4 FY 2021, as the latter had the impact of provision for Haulage and lease to Indian Railways for entire FY 2021. Next is a promising one, was the Rail Neer, was the only segment we saw a QOQ improvement in revenue. Due to the base impact, the year-on-year growth has been very strong. Importantly, this segment reported positive EBITDA after a loss in the previous four quarters, which was encouraging. The cash and bank balances and net worth of the company as on 30th June 2021 is INR 1,614 crores and INR 1,554 respectively. That brings me to the end of my opening remarks. We can move to the question and answer session. Thank you. We can start the question and answer session now. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of [Viraj Kacharia] from Securities Investment Management. Please go ahead. Yeah. Hi, thanks for the opportunity. I just have two questions. First is, compared to pre-COVID, how many trains are currently running? Second question is on our wallet offering, how is the traction coming along, and what is the revenue generation we are seeing? Thank you. When you ask me the pre-COVID level, the total number of our trains, I can give you that the special trains which are running are very different from the trains which are actually running. So it may not be appropriate to compare the special trains with the regular trains. However, I can give you the figure that was there till 31st of March 2021. We were having the trains running with the pantry car 272, which has now increased to 316. I think till yesterday it was 316. Similarly, till 31st March 2021, we have trains where we were providing train side vending was 158. Now we are providing 256. So put together, we are providing hospitality services or the catering services in 572 trains as compared to 430 trains. And this is much above the pre-COVID segment also. On the second part? Second is the revenue from the catering segment. The total license fee that we have received, total revenue from the catering has been around INR 56.72 crore, out of the total revenue of INR 257 crore, which is around 23% of the total revenue of the company. Out of which INR 44 crore we received from the license fee of the trains and concession fee in the name of a concession fee. Be it train side vending, be it a normal train with the pantry car, the earning comes to us in the form of a license fee that is constituting the major chunk of the fee that we get revenue from the catering segment. No, I meant it on the wallet which we offer. How is the traction coming along? We have a sharing of 60/40% with the Indian Railways. 60% is retained by IRCTC and the 40% goes to Railways. You asked specifically about the wallet. That is internet ticketing has. In that wallet, there is no sharing with the railways. It is a closed loop wallet that IRCTC has. Therefore, there is no sharing with anyone. It is being run by IRCTC. How is the traction coming along and what is the revenue generation there? Let me have a look. Only wallet. Wallet. This time it has been around INR 1.61 crore Because we are not taking any re-registration fee. We also have, in this, our business model is little different. The fresh registration that are coming up, they are paying the fee. The earlier registration who are with us, they are maintaining some cash float with us. That remains with us for doing the future transactions. Okay. Just to also understand the scale-up of this, how should we see this ramping up? Scaling of the e-wallet, yes, it has a future, but you know that the closed wallets are not very encouraged. You need to have an open wallet also. We have launched an open wallet in the name of iMudra, which is just taking off, and before we could launch, many of the payment aggregator have also launched their wallet. In competition with that, if we start promoting, this e-wallet has a future, but at the same time, the payment bank and other things are also coming up. It will grow simultaneously. How many users we have? We already have around 6 lakh users in this e-wallet. The open wallet also, we have a user. It has a future. People are using it. People have lot of confidence in IRCTC. Its growth is going to be little low because other payment option is going to come. They're already there. We have around 75 payment options available on our website. We have our own payment gateway also. We have our own wallet also. Out of those, customer is at liberty to use. We can only promote our things, and that we are doing very consistently. Okay, fine. I'll come back in queue. Thank you. Thank you. The next question is from the line of Mayank [Babla] from Dalal & Broacha. from Dalal & Broacha. Please go ahead. Thank you for taking my question. Congratulations on a great set of numbers, ma'am and sir. Ma'am, my question is around internet ticketing. Could you please give us the split between the convenience and non-convenience fee? Total amount that IRCTC has earned from this particular stream of internet ticketing is around INR 149 crores. Out of which, convenience fee has been the 69%, and non-convenience fee resources have been 31%. Like INR 104 crores is from the convenience fee, rest INR 45 crores is from the non-convenience fee resources, which includes the additional service charge that we collect from the B2C partners, our earnings from the advertisement and the promotions, the lead generation schemes, then the earning from our co-branded card, then specially e-wallet charges also, and annual maintenance fee that we charge from our B2B and B2C partners, and integration charges that we take for the one-time integration that we do. It includes everything, income from the banners, income from the advertisements, income from the SMS, income from the promotional mailers. Ma'am, what would be the- The revenue- Yeah. Sorry, ma'am. What would be the revenue from advertisement specifically, if you could give us a breakup? If you ask me, advertisement revenue should not be quoted alone. It should be advertisement on our website in the form of a banner also, in the form of a SMS also, in the form of a mailer also. Put together this month, this quarter, we have been able to generate INR 8.5 crores, out of which INR 2.4 crore has been generated from the banners, and I think INR 4.5 crores we have earned from the advertisements and rest from the other resources. From promotional mailers also, we have been able to generate INR 1.1 crores. From SMS also, we have been able to generate around INR 44 lakhs. Put together, it was INR 8.5 crores against the total earning from this segment. Last year, that was around to the tune of less than INR 10 crores. Okay. Industry in the advertisement is also improving it seems. Sure. Ma'am, my second question was in the same space. Ma'am, what is the number of tickets booked, if you could give us that figure in the? Yeah, please. The total tickets in the first quarter has been around INR 6.37 crores. Number of passenger, normally it comes out to be 1.7 or 1.8 is the factor per ticket. Number of passenger is around INR 8.1 crores. You can say that 81% of the overall ticketing of Indian Railways in the reserve segment is online and is being done through IRCTC. Right. Ma'am, my last question was relating to the Rail Neer. Ma'am, if you could give what was the latest capacity that we hold and the reason for the segment turning from a loss to profit, please. In fact, this has been a little strange story for us also. We have a capacity in the Rail Neer is around 14.8 lakhs bottle per day, liter per day. Yes. When I say bottles per day, I talk about the one liter bottle only. Yes. The current production in the first quarter has been around roughly, you can say 32%-35% of the capacity. Okay. April and May had been bad for us. Had April and May not been bad for us because of the second wave, this profit margin from the Rail Neer would have been much better. Normally, this is the peak season for the Rail Neer, and the water intake increases everywhere. Right. The percentage actual capacity, we have all the capacity. We are as of now working with the 35% of the capacity. Till June, I had 14 plant operational, but in July, we have opened 1 additional plant in Una. Okay. Per day production has been to the tune of 4.20 lakh bottles a day. That is the consumption, and that we were able to sell off. The production is normally 20% more than that because we keep some storage also to handle the holidays or any periods which are coming in between. Right. When the summer increases, it is a good day for Rail Neer. Okay. Ma'am, just one last request I had. I don't want to be sounding extra demanding, but ma'am, if all these pointers could be in an investor presentation every quarter, it would really go a long way for us analysts to use that data. That's it. This Rail Neer data, should I bring all the data? No, ma'am. All these tickets booked and all the data points. Include. We will include. Sure, ma'am. Thank you so much, and best of luck for the rest of the year. Thank you very much. We need it. Thank you. Thank you. The next question is from Mr. Urmil Shah from Haitong Securities. Please go ahead. Yeah. Good afternoon, ma'am, thanks for the opportunity. Ma'am, as regards the ticketing volume, maybe in July and August, have we seen majority of the days getting back to 9 to 10 lakh tickets per day? In fact, it has been more on many days. You can compare like this, that the average tickets which were booked in these three months was around INR 2.12 crore, average ticket in one month. In the month of July, this figure was INR 3.44 crore. We were more in July by INR 1 crore. The passenger traveled is also more. Normal passenger traveled in that particular quarter had been around less than INR 3 crore. This month it has been more than INR 5 crore. 11 lakhs average. Yeah. INR 11 lakhs is coming out to be my average, roughly. Sure. Ma'am, as regards the second seater capacity, given that the third wave still remains very unpredictable, would it be reasonable to expect that at least till end of this financial year, you will continue to get the benefit of that capacity available for reservation? It is very difficult to predict because we are not the deciding authority. One thing is for sure, that Ministry of Railways is very keen and keep inducting the trains every day. Whenever I handle the investors call, the number of the trains from where the catering services is being provided and the number of the trains where we are doing the booking and providing the reservation to our customers is increasing. We cannot comment upon what the decision is going to be taken by the ministry. This [two-way] segment is also profitable for Ministry of Railways, so it is not easy to dissuade with the profit so easily. I'm telling you from my experiences. Sure, ma'am. I cannot commit anything on this behalf because I am not the controlling authority. No, I totally understand. Ma'am, if you look at the non-ticketing revenue of the internet ticketing segment, I mean, non-service charge revenue rather, that has been quite resilient from Q2 onwards. Once we have normalization, in Q3 FY 2020, we did a peak of about INR 67 crores. Should we expect the non-service charge revenue to grow much faster than the service charge revenue once normalization comes in? This particular kitchen, non-convenience fee resources depend upon how the overall travel industry behaves. If the restriction from the state is taken away and the third wave is not there, then the people will gradually shift from the need-based travel to the leisure travel or the excursion travel. In that case, the travel will increase, so the advertisement will also, in a consequent manner, they will also increase. The banners will be opted. You will get better rates from the Google also, from all your partners. All new government contracts will also come. We have been able to fetch few government contracts for our advertisements, which we'll be executing perhaps this quarter or the next quarter, as the government decides. Our revenue in this segment, I anticipate personally that it is going to increase. If the things keep on improving the way they are, any third wave danger or any decrease in the vaccination however, will have direct impact on the travel industry. If the travel industry improves, everything related to the travel shall improve. That is our past experience has been. Sure, ma'am. That was encouraging. Ma'am, I just wanted an update on the talks with Zomato and Swiggy on the e-catering front, and if you could share what has been the daily order run rate in Q1 and the first month of this quarter. In fact, our experiences in the catering are improving because if we compare with the pre-COVID, we are very high. We are very near to that. On few days, we have been able to catch that figure also. Although the number of our overall trains running is less. On few days, we could match the average figure of pre-COVID levels also. It is consistently increasing. Our number of station increasing, number of our vendors who are providing the services is also increasing. People are opting. Our talks with the Zomato and Swiggy are not very encouraging because one, they were all busy in their IPOs, et cetera. They were charging pretty high for the few things. We are in talk with another brand to bring our own brand in the matter, who can supply the food, who can work as a delivery aggregator the way they are. We are coming up with another brand, and we are going to tie up. One such brand is also our B2C partner. We are in discussion with them, RailRestro. They are coming up as a delivery aggregator, we will bring our own brand as an aggregator for provide the e-catering food. That is what we are thinking. Otherwise, the things will become so costly for the customer. People may not opt for that. Sure. Ma'am, did I understand that we might launch our own brand in e-catering? We may launch in association with others. We will support them, provide them area, handholding will be done. Zomato, Swiggy, yes, talks are not yet closed because they were busy in other things. Okay. The total quantum, I think I cannot explain because the ways which Swiggy serves and Zomato serves is very different what the railway deliveries are. It is a static segment, it is a mobile segment. Kind of a deliveries are very different, and expectation of the customers are also very different. We have to bring them to our level so that the deliveries ensured and the cases of the non-delivery are not there in their cases. If any delay is there, train is gone. We have to ensure that if order is taken, it has to be delivered, too. Logistics is very important in e-catering to be done on the railways. Unless we are certain of that, we may not do any tie-up further. For where we are certain, we will do our tie-up. Otherwise, we will invite lot of complaints and dissatisfaction amongst the customers. Sure, ma'am. This would really enhance our presence. Ma'am, my last question was, there has been a news flow as regards the strategic partner we had talked about on the private train front. It appears that it might be more of a financial partner rather than a strategic partner. If you could throw some light on that front. The news report suggests that the bids received for the 12 cluster has been much lower than the earlier interest. What does that change for us? That was my last question. IRCTC was looking for a partner to participate in the private train tenders since last one year. We had floated our expression of interest thrice. Some of our individual clusters, we could not find a partner. We thought, let's go for a big thing, and we should now finalize our strategic partner. We came up with another expression of interest in the very transparent manner, and we could pursue many fund houses. NIFL was one of them. They had filled the bid, and they become our partner. We have already signed a non-binding MoU with them, and the binding MoU is in process. Always the legal consultant, et cetera, on both ends are working. We have also participated in the bid in three clusters, and the results from the ministry are awaited. We are yet to receive any Sure, ma'am. That was very helpful, and all the very best. Thank you. Thank you. The next question is from the line of Richard D'Souza from [SBI Mutual Fund]. Please go ahead. Good afternoon, ma'am. Just one question from my side. When we look at the number of trains where the ticketing services were offered, there seems to be a substantial increase now. Is this increase in number of trains because Indian Railways has launched new trains, or is it because some of the trains which are out of your ambit have come under your ambit? Just wanted to know the reason, ma'am. Actually, we operate only the tourist trains. It is the Indian Railways who operate the trains, and we provide the reservations for that. If I look at the figure, if I compare, I have some figure for the June, July, and August. I can tell you the average number of trains per day. In the June, it was 2,521. In July, it was around 2,700. Now in the month of August, it is 2,750. You can see the gradual increase happening every month. You said, these are the new trains, or it is the previous trains? The trains are being run in the name of a special train. Regular trains with the same numbers have not yet been restored. Same level of services with some difference has been started, like still railway is running Rajdhani, Shatabdi, Duronto, the premier trains, but with a different number. The only thing which may not be running will be the passenger trains in the local areas, where actually IRCTC was not a beneficiary. The tickets were being booked through UTS, Unreserved Ticketing System. Okay. Yes, we are beneficiary because of the second class being introduced in these trains. Okay. This is an additional advantage to us. Okay. When you look at this number, 2,750, which you said are running in August, for which you would have offered ticket booking. Pre-COVID, what would have been the number of trains running? When I say 2,750, I am talking to and fro. On few days back, I was hearing one discussion of Ministry of Railways. Around 1,750-1,800 pairs they run. It's a 3,600 kind of a train, or 3,500 kind of a train they run. You can say we must be lagging behind about, I think 400 more trains that will come. Okay. 400, 450 more trains will be coming in the future, or the numbering may change. With special trains, we are a little gainer. Okay. Of this, the premium segment would be how much? 30% is the premium segment. Okay. In this you include the ACs and the distance, second AC, third AC. When I say premium segment, it is not only the Rajdhani, Shatabdi, Duronto, it is the Superfast trains also. So around 30% is put together the premium trains. Rest is all normal Mail Express trains. Passenger trains, of course, is not counted in this 750 trains of the Indian Railways which they were running earlier. Passenger trains are counted in a different kind of area because they are running between intercities. Okay. They are intercity shuttle. Okay. Thanks a lot, ma'am. I'll come back later. Thank you. Thank you. Thank you. The next question is from the line of Rahul Jain from Dolat Capital. Please go ahead. Thank you for the opportunity. First question is, catering side, we have seen note to accounts that there is some INR 18 crore charge which was not charged to revenue. Can you give some clarity on this? Sorry to interrupt. We are not able to hear you. Hello. Is it better now? It is now better. Yes. In the note to account, we have given this INR 18.5 crore charge relating to unbundling model. Can you share more clarity on this? What is this relating to? There is no unbundling train. Yeah. Actually, as per the catering policy of 2017, the trains are to be run on the model of unbundling, where the production and service both have been segregated. Production has to be done from the kitchens being monitored closely by IRCTC under the CCTV, the QR code, et cetera, and the supply is to be done by the different service providers. In all those trains, some revenue sharing has to be done with the railways, which was done in the pre-COVID period. During the COVID period and today, because we are not serving any cooked food as of now, because the impact of COVID is still being considered and the railway has not resumed the normal operation. Last year, we did not pay any commission on the unbundling to railways, and this year also, till the time the services run on this model, we need not pay. Okay. Any input we can share in terms of this privatization potential CapEx we may incur in FY 2022 and FY 2023 if things goes as per the current frame of mind? See, it all depends if you win the bid or not. If you get LOA, some CapEx has to be planned and some investment has to be done by our partners, for which we are in stage of signing one binding MoU with them. Till that time I win and I get an LOA, it may not be appropriate for me to decide and discuss. Because after that, we may form a separate SPV, and then SPV will decide how much investment will be done. I cannot speak on behalf of SPV as of now. Right. If we could give the AC, non-AC mix and UPI share for this quarter? I can tell you that in this quarter, in the April, May and June, the percentage share of the second class, 2S, has been around 39%, and the average, that is average. Sleeper class again has been around 39%. Third AC has been 14%, and AC chair car has been roughly 2%, and second AC has been around 3.3%. Right. The UPI share in all tickets? UPI share is around 26%. This has dropped. Is there any reason for this? There is no drop. It is generally average is coming down as a 26%. There is no drop. UPIs are picking up. Maybe the people have preferred to opt for another model. Right. Just last one from my side. Are we seeing any improvement in terms of license fees going up in the catering contracts since things are opening up, volume on the passenger side are also increasing significantly? Yes. Positivity brings positivity. As the things are opening up, footfall at the station is increasing, occupancy of the train is picking up. More trains are also coming up. There was a very bad time for IRCTC in April, May. We could not find a contractor for many of our trains, and we had to run departmentally. Gradually, when the footfall started improving, we are finding good contractors and we are also earning good fees. Of course, this fee is not at par with the pre-COVID levels. Certainly we have improved as compared to the COVID levels, especially April and May. Okay. Thank you. That's it from my side. Yeah. Thank you. Participants who ask a question, please press star and one. The next question is from the line of Nitesh Shah from Motilal Oswal. Please go ahead. Hi. Ma'am, just one couple of questions. One is, in terms of, there was some article recently we found out that Indian Railways is planning to add one more Tier 3 AC coaches to trains. That will be over a period of next two years or so. Is it possible for you to give us some more detail around it? You might have heard a reply of honorable Railway Minister in the parliament also. Yeah. In one of the reply where I was also privy, in front of one committee, because the discussion happened in that committee cannot be brought in public. I cannot discuss about that. The reply of honorable minister is very clear that as of now, pantry car service is a service to customer, cannot be compared with the revenue. That is the reply he had given. Okay. This indirectly, we interpret the likelihood of removing the pantry cars is not being seen. Okay. Although I am not the right person to comment upon that. Okay, sure. In his reply, there is no likelihood appears. Got it. Okay. Ma'am, as far as the number of trains are concerned, what are we operating at, as compared to pre-COVID levels? We are around, I think 700 odd trains short. On a base- 700 trains short. Yeah. 2,000. 400 pairs you can say. We are short 400 pairs, we are short of. Once they are introduced, then we'll be able to match the pre-COVID levels also. Although our bookings are much higher than the pre-COVID levels. Yeah. That's because of two ways. Ma'am, on a base of 2,200 trains, we are 400 short. On a base of 2,000. Just now I answered this question, that previously Ministry was operating around 1,750 pairs of trains. You can say 3,500 trains. As in the month of August, we are operating around 2,750 trains. This much is the difference, which will be filled subsequently once the situation improves further. It is happening almost every day. We are getting new trains. Got it. Ma'am, one final question. Last time you did highlight that you've already applied for it. If that integration kind of goes through and as a consumer, we can use IRCTC app for booking the ticket, will we make some money on the payment gateway side also? Yes, we do. iPay is our kind of a very important product that we have launched in this year. Rather, we have been working on this product last three years. If I share my revenue from my payment gateway and the volume that we are handling, around you can say that 61 lakh transactions happened in the first quarter of this year. Around INR 635 crore transaction happened through using our iPay gateway. Our revenue last year has been to the tune of INR 14 crore, and this year it has been around INR 4 crore or so. Netting out, if I calculate the entire revenue, because in a payment gateway you earn through various methods. You have merchant [MDR] amount also, you have a net earning also. You get from the other banks also. Bank shares is also there. Revenue sharing is also there. We share certain revenue with our banks also. The net revenue which is coming to IRCTC comes out to be around INR 3.5 crore. Got it. In the first quarter. Got it. Ma'am, where are we on the integration part on the app? It is there already in the app. Okay. Sorry. Maybe recently we have changed the place. You will find the difference now. Okay. Understood. It was not prominently placed earlier. Now you will find the difference from 16th of August. In all our website, our PG will be appropriately placed so that people are able to locate it faster. Ma'am, what kind of traction should we get on numbers because of this integration? The market size is very large as far as the other segment is concerned. Just trying to understand if you can give us some sense on the size of the opportunity here. See- Because you're not going to charge, right? We have to think of beyond the internet ticketing. The payment gateway, it works in a two manner. One is the PG manner, another is the payment aggregator. For becoming a payment aggregator, we require certain approvals from the RBI for which we are applying, and the necessary changes in the memorandum of association will also be made. If the need comes, our SPV will be formed subsequently. If the need comes. We are going beyond internet ticketing also in the iPay, and we are talking to many agencies like EPFO, et cetera, so that this particular gateway, who has now stabilized in the last three years, and we are tweaking our internal processes and making our reconciliation more strong so that we can take this payment gateway outside. There, the more revenue will come. Here, the revenue which is there, Finally, we are going to share someone else's share. The booking on the internet ticketing side is correlated to the total inventory available, which is going to be fixed or may increase, but not may increase substantially. If we really want to increase the revenue of iPay, we may have to go out, for which the efforts are on, and we are strengthening our internal processes, which we have done. In this quarter, we will add, in this quarter also. Maybe in the third quarter, you will see that we are starting going out and the necessary approvals from the RBI, et cetera, are available with us, and the product is to be launched in the open market. Got it. Ma'am, just to reconfirm, the UTS integration is already done and will be visible from 16th of August, right? Yes. We are trying our level best to bring it in all the forums. We, in fact, we have also applied to [POI] agencies also to bring iPay, because earlier we did not have net banking, now we have net banking also. Understood. Okay, ma'am. The time has come when we can now take it to UTS for all government payment gateways, maybe income tax, we may think of. Far we were only. Anything goes wrong, we could manage because we were the controller. For going outside, you need to have a very strong system, which we have. We are only formalizing the SOP, the rates, et cetera, so that we can take out this product in the market. Perfect. Thank you so much, ma'am, and I'll come back in queue, ma'am. Thank you. Participants, to ask a question, you may press star and one. Next question is from the line of [Hasmukh Vishariya] from SUD Life. Please go ahead. Yeah. Hi. Thanks for giving me the opportunity. Most of my questions have been answered. I just want to clarify 1 thing, the number of tickets and the passengers travel number which you have provided. I think 63, 6.3 crore is the number of tickets and number of passenger travels would be in Q1. Yes, INR 6.37 crore is the number of tickets traveled in the first quarter. And the passenger travel- Number of tickets booked in the first quarter. 8.1 crore is the number of passengers traveled for the tickets booked through our website. That turns out to be just 1.3 passenger per ticket, versus earlier average of 1.6, 1.7 passengers. Yes. It is normally 1.7-1.8. On few days it has been 1.6. On few holidays it is not there. Okay. What would be the average, let's say, capacity or the capacity utilization number this quarter on the trains? Any approximate number around that? At the moment is occupancy. Occupancy number. Yeah. Occupancy figures we don't have because we book, we don't check. Okay. Fine. Okay. Thank you. The next question is from the line of Sumit from Capitalmind. Please go ahead. Hi, ma'am. I just didn't get the part on e-catering. I may request you to repeat what was the update on the e-catering business and the tie-up with Zomato, Swiggy you were talking about? E-catering is a business where the person can order online using our app or our website, and the food is provided on the site. We were intending to tie up with the Zomato and Swiggy. The talks were on. It got delayed because those both agencies were busy, and they were charging little higher for serving the food. Our food being served in the train is because service in the train and the service in the static unit or in the house is very different. One has to be a very strong logistics. Though our deals with the Zomato and the Swiggy are not yet finalized, talks are still on. Meanwhile, we could succeed in one of our B2C partners, who is also coming up with a delivery aggregator with our own brand. Where IRCTC can also provide some handholding kind of a thing so that the hot food is served. We could achieve the pre-COVID levels on few days with the limited number of trains we had, and our average booking of e-catering food is around 17,000 meals a day as compared to 21,000 meals pre-COVID level. Although on few days we were able to achieve 21,000 meals a day also. The number of stations providing e-catering is gradually picking up, still less than pre-COVID levels, and the number of orders that we are receiving is also less than pre-COVID levels, but still picking up. At this moment, who's providing this service of delivery to you? We have all the vendors. We have delivery aggregators, we have food aggregators, we have Domino's, we have Subway, we have Faasos, we have Haldiram's. All the food plazas are linked, and all the other brands of the local brands are also linked. Many brands are there. 252 stations we have opened this, and more than 1,000 vendors are already with us who have started the work. Okay. Who is this new B2C partner with whom you are looking to tie up? Yes. We have recently started with our B2C partner last three months. In the first quarter, the results are very encouraging. Many of our partners like MakeMyTrip, Yatra, Railofy, and ConfirmTkt, they have started selling e-tickets, and we are giving some share of our revenue to them also. Some charges we are sharing with them. With that, the booking has increased, and booking that we get from them is around 2,500 meals a day. Normally, we are getting from the B2C partners also. We are also thinking of revising our policy. Maybe subsequently we'll do. I wanted to know who is this new B2C partner who's coming out with the delivery aggregation business? We are in talks with many. Okay. Let us see where we succeed. Okay. Thank you. That's all. Thank you. The next question is from the line of [Sudesh Sandhi] from IDBI Capital. Please go ahead. Good afternoon. Good afternoon. Sorry to interrupt you, but there is a lot of disturbance from your line. Am I clear now, ma'am? Yes. Yeah, better. Please go on. My question is with regard to DFC. Have you seen any progress in DFC and any space being vacant with regards to passenger trains? Is the Ministry and IRCTC in discussion for any vacant space, and what is the timeline ahead for? Earlier the deadline for DFC was June 2022. I mean, we are in less than a year space of that. Just need an update on that. It may not be very appropriate to comment upon the working of a DFC, but I can certainly tell you from the news I read and in the railway parlor, it's a continuous improvement they are showing. The freight traffic that is moving through Dedicated Freight Corridor is increasing day after day. In fact, during the COVID period, etc., oxygen special, etc., many of them moved through that corridor. The corridor is showing consistent improvement, but I may not be able to share any figure with you on this because I don't have actually. Ma'am, my question was with regards to, has any space opened up because of the shifting of goods train to DFC, and has that been converted into passenger trains? The passenger trains have not started moving on the dedicated freight corridor. The private train tender is yet to be decided, and the new train, passenger trains, in case of an emergency, of course. When any emergency happens in the Railways, the alternative route, I don't know exactly, but they may be using the dedicated freight route also, provided that has a fitness for the passenger. Ma'am, for old route- Fitness of the track for the passenger and for the goods is very different. Right, ma'am. For the old route, I mean, not the DFC, but for the old route, has any space been created for the high speed or semi high speed trains? Is the IRCTC part of that? I'm not aware of. I'm sorry, I'm not aware of. Not yet. I don't know. Not yet. Okay, ma'am. Thank you very much. That's it from my end. Thank you. The next question is from the line of Vikrant Kashyap from KRChoksey Institutions. Please go ahead. Good afternoon to the team, and congrats on a very good set of numbers. Ma'am, my first question is regards to the tourism package that we offer. Could you give some updates where we stand and how is the traction since we are half of the second quarter? Tourism, we do domestic tourism also, and we do inbound also, and we are doing outbound also. We are into all sectors of tourism. We have a product ranging from INR 800 to $850 a day. If you ask me what kind of a tourism we are doing now, we are doing the majority of Since our regular trains are not running for rail-based tourism, we are doing only the mass tourism. In fact, once the trains opened up after June, I am very happy to announce to this house that my first Bharat Darshan has come back successfully, which we operated from the south zone, and two are running. We would be operating around 22 trains. So far, up to December, we had announced, and we would be adding more trains now if the situation remains the same, and we carry the people. The tourism will pick up. Last year, if you ask me the total number of a Bharat Darshan train and the Pilgrims Special was 25. That was in the entire year. If the things go right, up to December, we would have operated this many trains. In addition to this, in the deluxe segment, we have already announced one train called Char Dham Yatra, which is already full, which is our Buddhist rake, which we are using in a layover period and taking it to all the traditional four Char Dham. That is Badrinath, Dwarka, Puri, and Rameshwaram. That has been a big hit. Since it was a big hit, we had to launch another itinerary. Ramayana is already hit. We have launched that also in the deluxe segment. That is very encouraging and we are getting lot many bookings. Two, three circuits of mine are already booked. To promote the North frontier, the NF region, Seven Sisters, we have also launched another good package, which is also getting good attention from our tourists. Air packages, yes, our Ladakh package has been a great hit. Our Kerala package, in spite of the pandemic and the situation over there, people booked many. In fact, we had to launch a series of the Ladakh package and Kashmir also we had launched. Tourism is gradually taking off. Land tour is picking up, deluxe train is picking up. Our mass tourism in the name of our Bharat Darshan and pilgrim station has also started picking up. Our air bookings have gone up. The circuits, although not very encouraging, we are also going to do some promotions with the air ticketing business because many of the visa restrictions are still there. We are keeping our fingers crossed for the inbound tourism this year. Outbound also, till the restriction opens, we can't send the people out. Let's focus on the domestic tourism. That is what the company has decided. We are all way out to promote our things that you might be seeing through our social media handles also and other places. Lovely. Ma'am, can you give us the run rate of air ticket booking? It was around, I think, 2,700 segments a day till yesterday when I inquired. Okay. Ma'am, since our catering business being 100% e-catering, we are reaching to the pre-COVID level. How should we look at the margin profile over here? Are you talking specifically about the e-catering? Yes, e-catering margin profile. E-catering, our margins have gone up from 12% to 15%. Recently, we have increased the rates. It's increase over all new as well as old B2C partners? I'm not able to hear you fully. Can you please be a bit louder? The increase is across the board with the new as well as old partners? Yes. Okay. When we do, we have to ensure level playing. We cannot segregate. Okay. Ma'am, can you give us the update on our CapEx program for the year and then next year? CapEx, last time also, leftover work of the previous year will be completed because some few things in the April, May could not be completed. Around, I think, last year we had announced that INR 100 crores will be spent. We'll continue with that. If we win this tender for the private trains, the CapEx is going to be much, much more. Okay. May not be this year, maybe next to next year we will have that. Okay. Thank you. Thank you very much and wish you best of luck. Thank you. Thank you. As this was the last question for today, I now hand the conference over to the management for closing comments. Well, it has been a very thought-provoking session, I must say. Industry is well-read, all our investors are well-read, and they were quite inquisitive to know the developments happening in the company. It has always been a pleasure interacting with the investors. At times, it really has helped us in taking few decisions, what the market is actually looking for. To know the market trend, I think interaction with the investor is a continuous process and really strengthens the bond between the investor and the company. I wish you all the best for the Raksha Bandhan, coming Raksha Bandhan, the festival, and of course, a very happy Independence Day to all of you. Hopefully, this third wave doesn't imbibe us and tourism and the hospitality industry is able to sail off. If we sail off well, investors will certainly. Wishing you all the best once again. Thank you very much. Thank you.