Indian Railways' FY22 operating ratio: 107.39%
RAILWAYS & METRO RAIL

Indian Railways' FY22 operating ratio: 107.39%

The latest Comptroller and Auditor General (CAG) report has brought to light Indian Railways' financial performance for the fiscal year 2021-22, revealing an operating ratio of 107.39%. This figure, which represents the ratio of working expenses to traffic earnings, signifies a decreased capacity to generate a surplus. The report, presented in Parliament, offers an analytical overview of Indian Railways' finances and accounts, using the audited accounts for the year ended March 31, 2022.

The CAG's report highlights a loss of  $682.69 billion across all classes of passenger services in the fiscal year 2021-22. However, the auditor pointed out that this loss demonstrated a reduction compared to the previous year.

Notably, the entire profit of $391.96 billion garnered from freight traffic was allocated to cross-subsidize and compensate for the losses incurred through passenger and other coaching services. During 2021-22, the passenger operations' loss of $320.73 billion remained uncovered, according to the report.

The CAG's report underlines that the operating ratio of 107.39% in FY22 marks a significant increase from the 97.45% recorded in the previous fiscal year, indicating a diminished ability to generate surplus. This inability to generate net surplus during 2021-22 contrasts with the performance in 2020-21, where the operating ratio was 97.45%.

The report sheds light on the financial challenges faced by Indian Railways, particularly in the context of passenger services. The operating ratio serves as a key indicator of the railways' financial health, and the upward trend raises concerns about its ability to effectively manage expenses and generate revenues.

The latest Comptroller and Auditor General (CAG) report has brought to light Indian Railways' financial performance for the fiscal year 2021-22, revealing an operating ratio of 107.39%. This figure, which represents the ratio of working expenses to traffic earnings, signifies a decreased capacity to generate a surplus. The report, presented in Parliament, offers an analytical overview of Indian Railways' finances and accounts, using the audited accounts for the year ended March 31, 2022.The CAG's report highlights a loss of  $682.69 billion across all classes of passenger services in the fiscal year 2021-22. However, the auditor pointed out that this loss demonstrated a reduction compared to the previous year.Notably, the entire profit of $391.96 billion garnered from freight traffic was allocated to cross-subsidize and compensate for the losses incurred through passenger and other coaching services. During 2021-22, the passenger operations' loss of $320.73 billion remained uncovered, according to the report.The CAG's report underlines that the operating ratio of 107.39% in FY22 marks a significant increase from the 97.45% recorded in the previous fiscal year, indicating a diminished ability to generate surplus. This inability to generate net surplus during 2021-22 contrasts with the performance in 2020-21, where the operating ratio was 97.45%.The report sheds light on the financial challenges faced by Indian Railways, particularly in the context of passenger services. The operating ratio serves as a key indicator of the railways' financial health, and the upward trend raises concerns about its ability to effectively manage expenses and generate revenues.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code