Sunday 17 May, 2009

KRCL EARNS RECORD Rs. 300 CR FROM FREIGHT



MUMBAI : Debt-Equity ratio turns Positive for the first time since the start of its operations phase, Konkan Railway has earned a record Rs.300 cr alone from freight traffic in 2008-09 which, given the general economic slowdown all over the world, is nothing short of spectacular. The Debt-Equity ratio has also taken a positive swing from approx. 7:1 in 2007-08 to 0.55:1 in 2008-09 thanks to the recent Financial Restructuring of KRCL, thus paving way for the Corporation to reach a Break-Even point in the near future.

The freight earning of approx. Rs.300 crores in the year 2008-09 is an increment of almost 12% over the previous year. As in other zonal railways, the global recession did affect the freight traffic on Konkan Railway too, albeit only in the last quarter of 2008 and that too only for certain segment.

The traffic in this segment again picked up in January this year and made up for the
loss of earnings in the last quarter of 2008.

Konkan Railway has posted Total Earnings of approx. Rs.725 crores in the financial year 2008-09, and NTKM (Net Tonne Kilometer) – which is considered the bread and butter for any Railway system – also registered an 8% growth over the previous year, viz from 2854 Million to 3080 Million. Despite the market facing the recession blues, there was a marginal increase in number of freight trains run on the route.

The Financial Restructuring of the Corporation has enabled correct reflection of the financial status of the Corporation and improved its Debt-Equity ratio, thus making KRCL a Company with positive Net worth. With this now, Konkan Railway will be able to bid for big infrastructure projects.

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