Indian Railways reports over 10% revenue growth in Q1
The Indian Railways posted revenue growth of more than 10% in the first quarter, aided by its dynamic fare system for premium trains.
Robust growth in the passenger and freight segments helped the railways boost combined revenue to INR 43,000 crore in the three months ended June from INR 38,833 crore in the same period last year. Revenue in the passenger segment increased to almost INR 14,000 crore from INR 12,000 crore a year earlier.
A top rail official said that “This is the highest ever revenue railways have posted in the passenger segment. Higher earnings have been driven due to the dynamic fare system for all premium trains. We have launched more premium trains such as Tejas, Humsafar and Uday, which will give a further boost to passenger earnings.”
Demand for travel in air-conditioned coaches has surged over the past three years, prompting the railways plans to start economy AC trains. Freight loading also increased, backed by strong demand in transportation of iron ore, steel, food grains and other commodities.
The railways transported almost 290 million tonnes of freight between April and June, making INR 28,000 crore compared with INR 25,000 crore a year earlier.
The remaining revenue came from non-fare segments.
A revenue target of INR 1.89 lakh crore has been set for the current financial year, of which INR 1.18 lakh crore is expected from freight, almost INR 52,000 crore from the passenger segment and the remainder from non-fare sectors.
The official added that “The freight loading increases in the period between December and March. We’re hoping to meet the targets for the year.”
Tag Keyword: Indian Railway , Revenues , Premium Trains , Iron Export , Transportation