The Hindu : New Delhi News : Increase in DMRC profit

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Monday, Sep 24, 2007
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New Delhi

Increase in DMRC profit

Staff Reporter

Commercial operations began in 2002-2003

‘Delhi Metro has one of the lowest fare structures in the world, other than the Kolkata’
‘In 2006-2007, the company generated total revenue of Rs.542.78 crore’

NEW DELHI: Retaining its position as one of the few profit-earning Metros in the world, the Delhi Metro Rail Corporation has recorded a 15 per cent hike in its operational profit for the financial year 2006-07.

The DMRC has made an operation profit of Rs.398.69 crore as against Rs.346.53 crore in 2005-06. “The DMRC began commercial operations in 2002-2003 and has been making operational profits from the first year itself. This has been possible as the organisation has harnessed alternative sources of revenue, kept the number of its personnel to the minimum and curbed maintenance expenditure,” the Corporation said in a statement on Sunday.

“In 2006-2007, the company generated total revenue of Rs.542.78 crore from operations, real estate, consultancy and other incomes. After meeting all the expenditure (except interest and depreciation), an operating profit of Rs.398.69 crore was generated,” the Corporation claimed.

After adjustment of interest and depreciation, the DMRC earned profit before tax of Rs.23.59 crores during the financial year 2006-2007. After prior period adjustment of Rs.0.36 crore, the net surplus stood at Rs.23.23 crore.

A DMRC spokesperson said that Delhi Metro has one of the lowest fare structures in the world, other than the Kolkata Metro.

“To keep the fares at a low level, the company has extensively harnessed its resources other than operations. These include lease rentals and property development. In fact, the DMRC is funding about 5 per cent of the cost of Phase-II from its internal resources generated from Phase-I earnings,” said Anuj Dayal, Chief Public Relations Officer of the DMRC.

The fully operational Phase-I consisting of 65.1 km carry an average of 6.15 lakh commuters per day with the highest ridership in a day recorded so far at 7.36 lakhs with the actual Metro train occupancy on that day standing at 10.5 lakh as 43 per cent commuters used two or three lines in each trip.

Capital intensive

“Internationally, of the 135 Metros worldwide, only four make an operating profit apart from Delhi, these are Hong Kong, Taipei, Singapore and Tokyo.

This is because Metro construction is very capital intensive as a result of which Governments subsidises or support Metro operations as the social and economic benefit of the Metro is very high for the citizens of a city,” said Mr. Dayal.

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