Government companies working under different ministries of the Government of India are kept in 'Mini Ratna', 'Navratna' and 'Maharatna' etc. Two such government company IRCTC and IRFC, working under the Ministry of Railways, have now been given the status of 'Navratna'. What is the meaning of this promotion of companies and is it going to affect their share price?
The Department of Public Enterprises (Department of Public Enterprises) has now given the status of 'Navratna' to the Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC). It has become the 25th and 26th government company to get Navratna status.
A major reason behind giving these companies the status of Navratna is their own economic strength. The annual turnover of IRCTC was Rs 4,270.17 crore in FY 2023-24. After paying tax in this, the company's profit was Rs 1,111.26 crore. Similarly, the turnover of IRFC has gone up to Rs 26,644 crore during this period and its profit has been Rs 6,412 crore.
The government has approved the upgradation of Indian Railway Finance Corporation (IRFC) to Navratna CPSE, Making it the 26th #Navratna Among CPSES! IRFC is a ministry of Railways cpse with an annual turnover of ₹ 26,644 Cr, Pat of ₹ 6,412 CR and A Net of ₹ 49,178 cr for fy pic.twitter.com/fnxxzqyyri
- Department of Public Enterprises (@DPE_GOI) March 3, 2025
The main reason behind giving the status of Miniratna, Maharatna and Navratna to government companies in the country is for giving them freedom in taking economic decisions. This status works to decide the operation of companies from the operational autonomy to their decision making power.
The biggest advantage of becoming a 'Navratna' company is the freedom to take decisions for itself for single investment projects equal to Rs 1,000 crore or up to 15% of their total net worth. Now for this, both IRCTC and IRFC will not have to get permission from the central government.
The government has approved the upgradation of Indian Railway Catering and Tourism Corporation (IRCTC) to Navratna CPSE, Making it the 25th #Navratna Among CPSES! IRCTC is a ministry of railways cpse with an annual turnover of ₹ 4,270.18 Cr, pat of ₹ 1,111.26 cr and a net worth pic.twitter.com/1jhj6iqtmk
- Department of Public Enterprises (@DPE_GOI) March 3, 2025
Certainly the status of 'Navratna' company is expected to improve the share price of the company. The reason for this is that a company will now be able to take decisions for projects up to Rs 1000 crore. With the second decision making in your hand, the new business will be able to focus on the appearance. At the same time, he will also have the freedom to create new joint ventures, marketing and acquire technology. This will help the company grow up.
