Record ridership boosts Namma Metro’s profit before depreciation, reducing pre-tax loss by over Rs 350 crore in FY 2023-24.
Thanks to a surge in ridership, Namma Metro reported a threefold increase in profit before depreciation and managed to cut its pre-tax loss by over Rs 350 crore in the financial year 2023-24.
This marks only the second time Namma Metro has seen a profit before depreciation since it began operations in 2011. The metro network, which is now the second largest in India at 73.8 km, showed a significant improvement in its ability to manage finances effectively.
A high-ranking official from the Bangalore Metro Rail Corporation Limited (BMRCL) summarized the financial performance, stating, “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).“
Despite these gains, non-fare revenue streams still need attention. However, the future looks promising with Bengaluru’s metro network expected to expand to 175.5 km by 2026 and 256.7 km by 2031.
Currently, Phase 2, 2A, and 2B are under construction, while Phase 3 is awaiting the union Cabinet’s approval. Additionally, Phase 3A’s Detailed Project Report (DPR) has been prepared, setting the stage for further expansion.
In addition, Namma Metro is pushing for a fare hike. A decision on this will be taken by a high-powered committee to be constituted by the union government, as stated by the first official. The decision is expected next year.
Namma Metro’s growth and financial turnaround highlight its importance as a vital part of Bengaluru’s transportation infrastructure, offering commuters an efficient and expanding metro service.
