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Economic Times
2 days ago
- Business
- Economic Times
Railways' earnings showed 25.51-pc increase in 2022-23 over previous financial year: CAG
The Indian Railways earned Rs 2,39,982.56 crore from passenger and freight operations in the financial year 2022-23, reflecting a 25.51-per cent rise over the previous year, the Comptroller and Auditor General (CAG) said in its report tabled in both Houses of Parliament on Tuesday."This report provides an analytical review of the finances and accounts of the Indian Railways (IR) and is based on the audited accounts for the year ended March 2023," a press note from the CAG said. According to the report, in 2022-23, the total expenditure of the Ministry of Railways (MoR) was Rs 4,41,642.66 crore, which was 11.34 per cent more than 2021-22. The report said this total expenditure comprised Rs 2,03,983.08 crore (7.21 per cent more than the previous year) of capital expenditure and Rs 2,37,659.58 crore (15.15 per cent more than the previous year) of revenue expenditure. The ministry incurred around 72.22 per cent of the total working expenses on staff cost, pension payments and lease-hire charges on rolling stock, the press note said. Highlighting the Gross Traffic receipts (total earnings from passenger and freight services), the CAG said in 2022-23, it was Rs 2,39,982.56, reflecting a 25.51-per cent increase over the previous year (2021-22)."The increase in total receipts was mainly on account of an increase in passenger earnings, other coaching earnings and freight earnings. Transportation of coal constituted 50.42 per cent of freight earnings," the report said."There was a net surplus of Rs 2,517.38 crore in 2022-23 as compared to a net deficit of Rs 15,024.58 crore during the previous year. The Operating Ratio (OR) was 98.1 per cent in 2022-23 against 107.39 per cent in 2021-22. Indian Railways generated a net surplus during 2022-23 as compared to a net deficit in 2021-22," it CAG has observed that though there was a decrease in the loss on operation of passenger and other coaching services as compared to the previous year, the loss of Rs 5,257.07 crore in passenger operations was left uncovered during 2022-23."The profit from freight traffic was utilised to cross-subsidise the loss on operation of passenger and other coaching services," it said."Unsanctioned expenditure of Rs 6,483.71 crore, involving 1,932 cases, was incurred by MoR, which was 1.05 per cent of total expenditure during the year 2022-23," it about the financial performance of the public sector enterprises of the Indian Railways, the report said the investment of equity and loans in Railway Public Sector Enterprises as on March 2023 was Rs 5,38,869.02 crore, which comprised a paid-up capital of Rs 61,351.33 crore and long-term loans of Rs 4,77,517.69 crore."The Government of India contributed Rs 49,027.29 crore (79.91 per cent) in the paid-up share capital of Railway Public Sector Enterprises. The remaining paid-up share capital of Rs 12,324.04 crore was contributed by financial institutions (5.05 per cent), central government companies (5.03 per cent) and state government/state government companies (10.01 per cent)," the press note said."The net profit of the Railway Public Sector Enterprises had shown an increasing trend and had increased from Rs 6,146.29 crore in 2018-19 to Rs 12,056.61 crore in 2022-23," it audit found that of the total 45 Railway Public Sector Enterprises, 33 earned a profit (of Rs 12,145.97 crore) during 2022-23, which included 12 railway companies, 10 subsidiaries, five joint ventures (JVs) and six special purpose vehicles (SPVs)."Out of 33 profit-earning Railway Public Sector Enterprises, only seven Railway Public Sector Enterprises (six railway companies, one subsidiary) had declared a dividend as stipulated in DIPAM instructions of May 2016, which provided that every CPSE would pay a minimum dividend of 30 per cent of profit after tax or 5 per cent of net worth, whichever is higher," the press note CAG also reviewed budgetary and accounting controls in the accounts department of the North Western Railway, South East Central Railway and South Western Railway, and said the electrical department of construction organisation of the NWR raised a demand for Rs 5 crore for the Revised Estimates of 2022-23 against the Ratlam-Dungarpur via Banswara New Line Project frozen in September 2019 -- the demand that was cleared by the accounts department of the NWR as well as the Railway Board and funds were allotted to a frozen project."Up to March 2023, North Western Railway (NWR) and South Western Railway (SWR) incurred expenditure of Rs 3,142.49 crore against four works completed but not closed. The expenditure exceeded the revised sanctioned estimate by Rs 743.7 crore (31 per cent)," the press note said. "In NWR, the productivity tests of seven projects completed during the period 2011-12 to 2016-17, which were due between 2020-21 and 2022-23, had not been conducted as on date of audit (July 2023). Thus, the achievement against anticipated earnings/savings in working expenses when the proposals for the projects were embarked upon, could not be assessed," it added.
Indian Express
22-07-2025
- Business
- Indian Express
South Western Railway operated train with less than 2% occupancy for 7 years: CAG report
The South Western Railway operated a train with less than 2 per cent occupancy for six years, resulting in a loss of Rs 17.47 crore, according to a Comptroller and Auditor General of India report. The train (12691/12692) was run between Bengaluru and Sri Satya Sai Prasanthi Nilayam stations from April 2017 to March 2023, said the CAG report tabled in Parliament on Monday. The full report contained 25 audit findings from various railway zones across the country, pointing out cases of undercharges or overpayments of Rs 543.17 crore. One of the findings of the operating department of Bengaluru Division, which comes under the South Western Railway (SWR) zone, suggested that both the zonal headquarters and the Railway Ministry didn't take any corrective measures despite being aware of the poor occupancy. The report said that the Railway Ministry's prescribed criteria stated that if the earning potential (both reserved and unreserved accommodation) was below 30 per cent on average for the whole year in both directions, the Zonal Railways can shortlist such trains for cancellation and forward the proposal to the Railway Board for final decision. According to the audit, the said train operated between Chennai Central (MAS) station and Sri Satya Sai Prasanthi Nilayam (SSPN) station via KSR Bengaluru (SBC) station and it received poor patronage between SBC station and SSPN station in both directions. The rail division submitted a proposal to its headquarters with various suggestions such as terminating the train at an intermediate station instead of running it up to the original destination station, diversions, etc to improve the occupancy. However, none of the above proposals was implemented, the report said. 'Audit further examined the occupancy of the train between SSPN station and SBC station (to and fro) for the period from April 2017 to March 2023 and it was observed that the occupancy of the train throughout the above period was less than 2 per cent,' it said. It added, 'The operational cost of the train was huge, and the loss on account of running the train between these stations was to the tune of Rs 17.47 crore during this period.' The audit recorded the statement of the zonal headquarters, which stated that as the above train was time-tabled, it needed the Railway Ministry's approval for its termination. It further said that the proposal for terminating the train at Bengaluru Cantt (BNC) station was sent to the Railway Ministry in June 2022, awaiting approval. 'The reply of Zonal Railway Administration indicates a collective failure. It shows that although the problem was highlighted by the SBC Division in December 2016 but the Zonal Railway Administration brought this issue to the notice of MoR (Ministry of Railways) only after six years,' the audit said. 'Further, even after a lapse of over one year after submission of the proposal by the Zonal Railway, a final decision on the same is yet to be taken by MoR.' The audit report has also recorded that the matter was referred to MoR in February 2024, but no reply was received till July 2024. 'Ministry of Railways should review the operation of the train in light of the suggestions made by SBC Division and SWR Zone and take an appropriate decision,' the CAG recommended. 'The delay on the part of the Zonal Railway in bringing the issue to the notice of MoR may be examined and responsibility fixed,' it added.
Business Wire
05-06-2025
- Business
- Business Wire
Cleverbridge Awarded Government Grants to Accelerate Innovation in Global Ecommerce
COLOGNE, Germany & CHICAGO--(BUSINESS WIRE)--Cleverbridge, a leading Merchant of Record (MoR) for software and SaaS companies, has secured three technology grants from the German government for up to €8 million in recognition of its leadership and innovation in digital commerce. "These grants are a powerful endorsement of our product vision and commitment to meaningful progress. We're building the future of global ecommerce, where flexible, AI-driven products and expert services work hand in hand to fuel long-term growth.' The grants were awarded through a competitive application process, with each project evaluated for its technical merit and potential business impact for companies leveraging the Cleverbridge platform. The funding will support a range of strategic initiatives, including developing a more flexible payment gateway, enhancements to subscription and billing features, and expansion of artificial intelligence (AI) capabilities. 'These grants are a powerful endorsement of our product vision and commitment to meaningful progress,' said Richard Stevenson, Chief Executive Officer at Cleverbridge. 'This investment enables us to accelerate our use of emerging technology to solve complex challenges for our clients. We're building the future of global ecommerce, where flexible, AI-driven products and expert services work hand in hand to fuel long-term growth.' Cleverbridge already uses AI to successfully process millions of transactions every year. AI is embedded across the platform to drive conversions, reduce churn, and surface opportunities faster. Specific applications include fraud detection, dynamic retries for failed payment recovery, predictive analytics and forecasting, anomaly detection with real-time risk alerts, and automated retention marketing. Looking ahead, Cleverbridge plans to further expand the role of AI across its platform, exploring emerging use cases such as AI-enabled multivariate testing and agentic AI to enhance both the user and customer experience. With a top-tier product team — including talent from Stripe, Klarna, Spotify, and other leading tech companies — Cleverbridge is redefining what it means to be a Merchant of Record. Beyond offering a high-performing platform that powers tax compliance, fraud protection, and seamless global transactions, Cleverbridge pairs its technology with deep service expertise. From adaptable billing models to tailored go-to-market support, Cleverbridge empowers software companies to scale globally with confidence. As both a technology provider and strategic partner, Cleverbridge simplifies the complexities of cross-border digital commerce, allowing clients to concentrate on what they do best — building innovative products and creating outstanding customer experiences. For more information, visit or follow Cleverbridge on LinkedIn. About Cleverbridge Cleverbridge is the all-in-one ecommerce platform for global subscription businesses. As a Merchant of Record (MoR), we consolidate the essential components of an ecommerce solution — including payments, subscription management, tax/VAT handling, and regulatory compliance — to help businesses offload operational work and automate digital transactions throughout the customer lifecycle. Since 2005, leading B2B and B2C technology companies across industries have trusted Cleverbridge to deliver frictionless buying experiences and optimize acquisition, expansion, and retention in over 240 countries and territories. Learn more at
Mint
29-05-2025
- Business
- Mint
Amrit Bharat boost: Stocks to benefit from station modernisation
For FY25, Indian Railways allocated ₹12,994 crore for 'customer amenities". This includes funding for station redevelopment projects like the Amrit Bharat Station Scheme (ABSS). The scheme intends to upgrade and modernise over 1,300 stations across the country. It involves creating master plans and executing them in phases to enhance various station facilities, including station accessibility, waiting areas, toilets, lift and escalator installations, free Wi-Fi, kiosks for local products through initiatives like 'One Station, One Product', passenger information systems, executive lounges, spaces for business meetings, landscaping, and unique requirements of each station. With a vision to transform railway stations into vibrant urban centres, the state-run companies in the railway sector will play a crucial role, making them attractive for long-term investors. Also Read: Four stocks to watch as India's space economy eyes $44 billion by 2033 This article highlights a few stocks that will benefit from Indian Railways' Amrit Bharat Station Scheme. Have a look... Ircon International Ltd Ircon International Ltd (IRCON) commenced its business in 1976 as a railway construction company. It was awarded the Navratna status by the department of public enterprises, ministry of finance, in October 2023. It offers comprehensive project management and consultancy (PMC) services from planning to commissioning in the entire spectrum of projects for the construction of railway sidings, highways, railways, and roads over bridges, buildings, etc. Ircon's service portfolio includes engineering, procurement, and construction (EPC) services, which align with the ABSS mission to modernise 1,300 railway stations across India. The company has completed about 400 infrastructure projects in India and 128 projects in 25 countries globally, including Iran, Iraq, Jordan, Turkey, Malaysia, Nigeria, Brazil, etc. It has a huge client base, including NHAI, BHEL, Delhi Metro, Indian Oil, NTPC, NMDC, Power Grid Corporation of India, Nigerian Railway, Bangladesh Railway, Zambia Railways, etc. Recently, the company has secured a contract of ₹253 crore from South Western Railway for the implementation of KAVACH, an indigenous train collision avoidance system. Also Read: Four fast-growing space stocks to add to your watchlist Its revenue grew at a compounded annual growth rate (CAGR) of 32.1% over the past three years, while its net profit grew at a CAGR of 33.5%. The company maintained strong financial health, with an average RoE of 14.4% and RoCE of 17.3%. Rail Vikas Nigam Ltd Incorporated in 2003 by the Government of India, it is engaged in the business of implementing various types of rail infrastructure projects assigned by the ministry of railways (MoR). This includes doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, production units and sharing of freight revenue with the railways as per the concession agreement with the MoR. Anticipated turnover for the coming years is projected at ₹ ₹28,000-30,000 crore annually, with a gestation period of three to four years for project execution. Infrastructure projects like Thiruvananthapuram Central Railway Station redevelopment, worth ₹439 crore and electrification projects of the Southern Railway, worth ₹143 crore, are a demonstration of RVNL's capability to handle large-scale infrastructure developments. This makes the company a strong contender for future ABSS-related assignments. In Q4 FY25, RVNL secured new orders worth ₹6,600 crore, bringing the total order inflow for FY25 to ₹13,700 crore. Indian Railway Finance Corp. Ltd (IRFC) Incorporated in 1986, IRFC borrows funds from the financial markets to finance the acquisition/creation of assets, which are then leased out to Indian Railways as a finance lease. Also Read: This luggage leader is staging a turnaround. But can it overcome its baggage? It is the funding arm of Indian Railways, which provides loans to various companies working in the sector, such as RVNL, Konkan Railway Corp. Ltd, IRCON, RailTel Corp. of India Ltd, Pipavav Railway Corp. Ltd, etc. The company is exploring opportunities to invest in railway infrastructure projects, including dedicated freight lines, high-speed rail corridors, and multi-modal logistics parks. The company received the Navratna status in FY25 and is working towards Maharatna status. Recently, the company secured government approval to raise up to ₹10,000 crore for its infrastructure projects through deep-discount bonds. Its revenue grew at a CAGR of 19.1% over the past three years, while its net profit grew at a CAGR of 13.2%. The company maintained strong financial health, with an average RoE of 13.9%. RailTel Corp. of India Incorporated in 2000, the company creates nationwide broadband and VPN services, telecom, and multimedia networks to modernise Indian Railways' train control operation and safety system. It is a Navratna public sector undertaking and one of the largest neutral telecom infrastructure providers in India, owning a pan-India optic fibre cable network (OFC), which can serve up to 70% of the country's population. Its RailWire broadband service has over 580,000 subscribers. It has executed critical projects of national importance such as BharatNet, National Knowledge Network (NKN), railway signalling, etc. The ABSS emphasises the enhancement of passenger amenities, including the provision of free Wi-Fi, digital signage, and advanced information systems. RailTel, with its extensive optical fiber network covering is well-positioned to implement and manage these digital services. Its revenue grew at a CAGR of 23.1% over the past three years, while its net profit grew at a CAGR of 20%. The company maintained strong financial health, with an average RoE of 12.9% and RoCE of 18%. Conclusion The ABSS scheme offers a unique opportunity to strengthen the role of these railway PSUs in India's rail infrastructure growth. IRCON and RVNL will gain through increased project execution, construction, and engineering opportunities. Also Read: Trent's 1,000% rally takes a breather. Can a Sensex rejig revive its fortunes? IRFC will gain through supporting the large-scale financing needs of Indian Railways' expanding asset base. RailTel will play a key role in providing the digital backbone, smart station technologies, and passenger connectivity services. However, one factor to keep in mind is that any change in budget priorities, political shifts, or delays in project approvals can directly hit their financials. Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock before making any investment decisions. Happy Investing. Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
Mint
26-05-2025
- Business
- Mint
Can this railway stock manage the risks while chasing long-term growth?
Indian railway makeover is no longer a dream; it's a full-blown mission. And right at the heart of this infrastructure push is Rail Vikas Nigam Ltd (RVNL), the government arm for the mega rail projects. From electrification and track doubling to station revamps and even metro rail expansions, RVNL is quietly doing the heavy lifting for the Indian Railway's future. But here's the real question: Is RVNL just riding the PSU hype train, or does it genuinely have the steam to compound wealth long-term? In this piece, we decode the RVNL business model, its financials and much more. About RVNL Incorporated in 2003 under the ministry of railways (MoR), RVNL was set up with a clear mandate to accelerate the implementation of critical railway infrastructure projects. Acting as the MoR's primary construction arm, RVNL today is responsible for building new railway lines, electrification, major bridges, workshops, and even metro and urban transport systems. The company has mastered leveraging extra-budgetary resources, especially through the formation of Special Purpose Vehicles (SPVs), reinforcing its ability to mobilise capital beyond traditional government allocations. Its consistent performance earned it Miniratna Category-I status, a recognition that conferred greater operational autonomy. But the real game-changer came in April 2023, when RVNL was awarded the Navratna status. This recognition has not only boosted its financial independence but has strategically positioned the company to compete for larger, more complex infrastructure projects. What has RVNL built? Here's a quick overview of what makes the company a silent force in India's infrastructure story: Revenue Model of RVNL RVNL primarily earns through EPC (Engineering, Procurement, and Construction) contracts, but what's interesting is its evolving model. While EPC accounted for more than 80% of revenue, the rest comes from the project management consultancy (PMC) and other high-margin services. Fees typically range from 8.5-10%, depending on the project type, and the company is actively transitioning from nomination-based to competitive bidding models. RVNL is intricately tied to India's macro-infra goals, particularly the PM Gati Shakti National Master Plan. Competitive Landscape: Key Peers RVNL operates in a competitive environment, with key peers including: From multi-modal logistics parks (MMLPs) to streamlining freight corridors, RVNL's contributions go far beyond laying tracks, it's building India's next-gen logistics and trade infrastructure. Over the last five years, the company has demonstrated a strong and consistent growth trajectory. Turnover has grown steadily, at a compound annual growth rate (CAGR) of 10.6%. Net profit has also expanded impressively to ₹14,630 million (m) in FY24, nearly doubling in five years. It is supported by stable operating margins and a controlled cost structure. The operating profit margin has remained steady at 6%, indicating consistency in operational efficiency despite scaling up. The growing earnings per share (EPS) highlights the company's growing profitability on a per-share basis. This improvement in share also reflects management's effective capital deployment. The balanced dividend payout suggests how the company rewards its shareholders while also retaining profits for future growth. Apart from the strong financials, RVNL will significantly benefit from powerful structural drivers shaping the Indian infrastructure landscape. Sectoral Tailwinds: Railway Infrastructure Boom in India Key Growth Drivers of RVNL Risks Investors Should Know While RVNL presents a compelling growth story, investors must consider several inherent risks associated with it. Conclusion RVNL isn't laying tracks anymore, it's laying the groundwork for a bigger infra story. With strong PSU roots and expanding beyond railways, the potential is real. But new sectors bring new challenges. The real game is balancing smart diversification. Before taking any financial decision, investors should check if the stock aligns with their investment objectives or not. Match the opportunity with the risks. Happy Investing. Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
