BMRCL's ticket revenue up, but revenue takes a hit

The Bangalore Metro Rail Corporation Limited's (BMRCL) revenue has taken a slight hit compared to last year, with the corporation's losses going up by over 40% from Rs 352.25 crore in 2017-18 to Rs 498.41 crore in 2018-19, data from audited results show.

Revenue from operations increased by nearly 25% while revenue from tickets went up from Rs 324.99 crore last year to Rs 402.23 crore for the year ending March 2019.

However, income from property development and advertisement has come down by Rs 81.69 crore to Rs 131.64 crore. Last year, the corporation had set itself an ambitious goal of meeting a part of its debt obligations besides achieving break-even at operations.

However, the dip in revenue from other sources has reduced its ability to service loans.

When contacted, Ajay Seth, Managing Director, BMRCL, said the corporation will soon issue a detailed note on the matter.

Officials cited depreciation of the asset value to Rs 583.93 crore, Rs 112.49 crore paid towards the loan servicing and Rs 235.9 crore spent on miscellaneous expenses as the major reason for the expenses.

According to officials, shift in focus towards property development and increasing attention paid to the completion of Phase 2 projects were the major reasons for the dip in 'other income'.

"There is a feeling that property development should be in line with enhancing passenger experience. Though it may lead to losses in the short term, it allows for growth with a vision," an official said.

As borrowing for Phase 2 projects has picked up, the total liabilities of the corporation have jumped from Rs 18,965 crore to Rs 21,947 crore.