Konkan Railway to be profitable by 2011-12
Konkan Railway Corporation Ltd (KRCL) is all set to turn into a profitable organization by 2011-12, according to a statement released by the Railway Ministry. The net loss of KRCL for the year 2008-09 was Rs.79 crore, which has been brought down to Rs.10 crore during the year 2009-10. The operating surplus of KRCL is Rs.224.10 crore during 2009-10 and the total earnings during this period have risen to Rs.741.59 crore.
The Operating Ratio (Every rupee spent out of hundred rupees earned) has improved to 77.78 per cent during 2009-10 as compared to 83.82 per cent of the previous year. Konkan Railway has also achieved profit before tax of Rs.30.41 crore for the year 2009-10 as compared to Rs.11.15 crore during 2008-09.
The freight earnings of the Konkan Railway during the second half year (From Oct’09 to Mar’10) was Rs.182 crore which is the best-ever. After implementation of the Financial Restructuring Proposal, the debt liabilities of KRCL has come down. Liability on bonds came down from Rs. 3026 crore during the financial year 2000-01 to Rs. 2048.50 crore at the end of the financial year 2009-10. This year also, KRCL is proposing to redeem bonds worth of Rs.339.50 crore, leaving the outstanding amount to Rs.1709 crore only.