L&T Metro Rail Hyderabad Sees Surge in Revenue and Reduced Losses

L&T Metro Rail Hyderabad Sees Surge in Revenue
Rate this post

L&T Metro Rail Hyderabad (L&TMRH) has reported significant financial improvements in the fiscal year 2023-24, ending on March 31. The company has not only increased its revenue but also managed to reduce its losses substantially. Additionally, it received a ₹800 crore ‘soft loan’ from the Telangana government.

Financial Highlights

The annual report reveals that L&TMRH’s total revenue increased to ₹1,399.31 crore, a remarkable 105% rise from the previous year’s ₹682.53 crore. The revenue sources include:

  • Metro Rail System and Others: ₹611.48 crore
  • Operational Transit Oriented Development (TOD) Assets: ₹796.33 crore
    • This includes income from advertising, retail activities at stations, rentals of optic fibre cables, right of way for telecom towers, etc.

Fare and Non-Fare Revenue

The fare revenue saw a significant increase, rising from ₹458.20 crore to ₹602.98 crore. Non-fare revenue also showed promising growth in several areas:

  • Rental Income: ₹96.50 crore (down from ₹110.42 crore)
  • Advertising Revenue: ₹81.06 crore (up from ₹67.28 crore)
  • Real Estate Undertaking: ₹511.73 crore (newly recorded)
  • Other Revenue: ₹82.77 crore (up from ₹54.79 crore), including reimbursement of utility charges and common area maintenance.

Reduction in Losses

L&TMRH successfully reduced its losses by 58%, bringing them down to ₹555.04 crore in 2023-24 from ₹1,315.94 crore in the previous year. This significant decrease reflects the company’s improved financial health and operational efficiency.

Operating Expenses and Financial Stability

Operating expenses slightly increased from ₹350.35 crore to ₹400.06 crore. Despite this, the company has maintained its financial stability, ensuring no defaults on payments to financial lenders. The soft loan from the Telangana government is repayable on the 16th anniversary, with all proceeds directed towards debt reduction.

Passenger Journeys and Public Perception

The company has reported a steady rise in passenger journeys, indicating the metro rail system’s growing popularity among commuters. The metro offers significant advantages in terms of safety, reliability, and reduced travel time, making it a preferred choice for many.

L&TMRH’s financial report highlights the positive trajectory of the metro rail system in Hyderabad. With increased revenue, reduced losses, and a commitment to enhancing commuter experience, L&T Metro Rail Hyderabad is poised for continued success and growth in the coming years.

Leave a Reply