Namma Metro clocks 3-fold rise in profit after interest as patronage soars

Bengaluru: Buoyed by record ridership, Namma Metro clocked a three-fold increase in profit before depreciation and reduced its pre-tax loss by over Rs 350 crore in the financial year 2023-24.

This was the second-ever profit before depreciation (or after interest) for Namma Metro, which began operations in 2011 and is currently the second largest metro network in India at 73.8 km.

Pre-depreciation profit shows a company’s ability to service debt. Delhi Metro is the only other metro network to achieve a profit before depreciation.

In 2023-24, Namma Metro's daily average ridership soared by nearly 40 per cent compared to 2022-23 while overall ridership rose by 31 per cent. This strongly boosted farebox revenue, which increased by 35 per cent (Rs 573.91 crore vs Rs 422.61 crore), data reviewed by DH shows (see the table).

Summing up Bangalore Metro Rail Corporation Limited's (BMRCL) financial performance in 2023-24, a high-ranking official stated that after adjusting for foreign exchange variations, Namma Metro's pre-tax loss reduced by Rs 355 crore (Rs 578.09 crore vs Rs 222.45 crore).

However, non-fare revenue, which comes from paid parking, kiosk leasing and advertising rights, rose only marginally — from Rs 178.34 crore in 2022-23 to Rs 181.85 crore in 2023-24, the official said.

The BMRCL plans to generate Rs 100 crore per year from advertising inside trains, according to the official. "Increasing the non-fare revenue is one of our priorities. We are working towards it," the official told DH.

The BMRCL hopes to cover a part of depreciation costs in the next three years and become financially self-sufficient in the next 10 years, according to the official.

Bengaluru's metro network is expected to reach 175.5 km by 2026 and 256.7 km by 2031. While Phases 2, 2A and 2B are under construction, Phase 3 is set to get the union cabinet's approval shortly. Phase 3A's Detailed Project Report (DPR) has been prepared and submitted to the state government.

This year, the BMRCL aims to add 22.29 km to its network.

Another senior BMRCL official said the Green Line extension (Nagasandra-Madavara, 3.14 km) would open by the end of September and the 19.15-km Yellow Line by December.

Civil work on the Yellow Line, which will provide metro connectivity to the tech hub of Electronics City, is ready but commercial operations have been delayed for lack of trains.

Fare hike on cards

Namma Metro is pushing for a fare hike but the decision will be taken by a high-powered committee to be constituted by the union government, the first official said. The decision is expected next year.