Indian Railways Operating At A Loss, Spends Rs 111 To Earn Only Rs 100

While you may be complaining of rising train fares and uncleanliness on railway platforms and in train coaches, a new data reveals Railways’ plight.

Indian Railways spent a little over Rs 111 to earn Rs 100, signalling at poor operating ratio. The public entity set a record-high operating ratio of 111.51 per cent – which means it spent Rs 111.51 to generate every Rs 100, reflective of lower growth in traffic against the set target and heavy outgo because increased pension liability and working expenses.

Operating ratio is a gauge of operational efficiency that measures expenses as a proportion of revenue. It indicates the organisation’s operating expenses divided by its operating revenues, which helps to check its performance.

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