Date:11/11/2008 URL: http://www.thehindu.com/2008/11/11/stories/2008111161191100.htm

National

Railway earnings slow down

Special Correspondent

Cumulative figures for 7-month period compare well

NEW DELHI: The earnings of the Railways apparently are taking a hit if one goes by the figures for October 2008, though on a cumulative basis the first seven months of the current financial year compares well with its corresponding period a year ago.

The overall earnings during April to October 2008 was Rs.44,547.52 crore for a 15.76 per cent rise over the Rs.38,481.83 crore turnover in the corresponding period in 2007.

But the picture becomes dismal when the proceeds for October alone are taken into consideration. The revenue stood at Rs. 6239.36 crore compared to the 2007 figure of Rs.5,857.28 crore registering a growth rate of just 6.52 per cent.

The worrying factor was that the growth rate had decreased considerably across the board with October signalling a slowdown trend but for its earnings from other coaching facilities.

The returns from passenger traffic were Rs.12,575.05 crore till October of the current financial year against Rs.11,160.90 crore a year ago for a 12.67 per cent growth rate. However, the increase in October was lower at 10.25 per cent from Rs.1,649.06 crore to Rs.1,818.16 crore.

The most glaring decline has been recorded in the earnings from freight loading. For October it has come down drastically to 4.91 per cent from Rs. 3,911.50 crore to Rs.4,103.73 crore whereas for the seven-month period the recorded increase happened to be a healthy 17.38 per cent from Rs.25,688.18 crore to Rs. 30,151.97 crore.

Sundry earnings from advertisements etc. too marked a weakening trend in October demonstrating a growth rate of just 3.45 per cent.

The revenue went up just marginally from Rs.141.56 crore to Rs. 146.45 crore. For the seven-month period, however, the rise was a good 20.96 per cent from Rs.572.88 crore to Rs.692.95 crore a year ago.

Bright spot

Earnings of other coaching facilities alone had a more encouraging picture. The revenue in October rose by 10.22 per cent from Rs.155.16 crore to Rs. 171.02 crore whereas for the cumulative rise for the seven months was 6.39 per cent from Rs.1,059.87 crore to Rs.1,127.55 crore.