Presenting her third budget in UPA-II in the Lok Sabha, railway minister Mamata Banerjee announced a slew of concessions, freight loading of 993 million tonnes and a passenger growth of 6.4%. She also announced 56 new trains, including nine non-stop Duronto trains and three Shatabdis
New Delhi: For the third successive year, the railway budget for 2011-12 spared the passengers of any increase in fares and proposed no hike in freight rates while introducing 56 new trains, including nine non-stop Duronto trains and three Shatabdis, reports PTI.
Presenting her third budget in UPA-II in the Lok Sabha, railway minister Mamata Banerjee announced a slew of concessions including reducing the eligibility age of senior women citizens from 60 to 58 years and the fare concession for men above 60 from 30% to 40%.
Apparently with an eye on the forthcoming assembly polls in West Bengal, where she is projected as the chief minister candidate of Congress-Trinamool combine, she came out with a number of projects for the state, including a metro coach factory in Singur, a rail industrial park in Jelligham, an integrated suburban network for Kolkata and 34 new services for the Kolkata metro.
Her announcements for the state evoked protests from members including those from Bihar, UP and Kerala, but she appealed to them to be patient for her other announcements.
The minister also extended the concession for physically-challenged persons and Kirti and Shaurya Chakra awardees to travel in Rajdhani and Shatabdi trains, besides extending facility of card passes to parents of unmarried posthumous Paramvir Chakra and Ashok Chakra gallantry award winners. She also proposed to induct 16,000 ex-servicemen in the Railways by March.
The budget proposes the highest-ever plan outlay of Rs57,630 crore for 2011-12. The gross budgetary support has been projected at Rs20,000 crore, diesel cess Rs1,041 crore, internal resources Rs14,219 crore and market borrowing at Rs20,954 crore.
The budget estimates for 2011-12 projects a freight loading of 993 million tonnes and a passenger growth of 6.4%.
Gross traffic receipts has been estimated at Rs1,06,239 crore, exceeding the Rs1 lakh crore mark for the first time, despite pressure on finances on account of Pay Commission payout.
Ordinary working expenses have been assessed at Rs73,650 crore and appropriation to depreciation reserve fund pegged at Rs7,000 crore.
Provision of Rs6,735 crore has been made for dividend payment and the excess for Railways for the new fiscal has been projected at Rs5,258 crore, with an operating ratio of 98.1%.
On the financial performance for the current year, the budget disclosed that disruption of train movement resulted in a loss of Rs1,500 crore and Rs2,000 crore due to the ban on export of iron ore. The loading target was reduced by 20 million tonnes (MT) to 924 MT.
Gross traffic receipts have been fixed at Rs94,840 crore, which is higher by Rs75 crore over budget estimates.
The ordinary working expenses has been fixed at Rs67,000 crore, an increase of Rs2,000 crore over BE and the current dividend liability to be fully discharged.
The next year's budget provides Rs9,583 crore for new lines. A target of 1,300 km of new lines, 867 km of doubling of lines and 1,017 km of gauge conversion has been targeted in the new fiscal.
The new Duronto expresses will run between Allahabad-Mumbai, Pune-Ahmedabad, Sealdah-Puri, Secunderabad- Vishakhapatnam, Madurai-Chennai, Chennai-Thiruvananthapuram, Mumbai Central-New Delhi, Nizamuddin-Ajmer and Shalimar-Patna.
Air-conditioned double-decker services are proposed to be introduced on Jaipur-Delhi and Ahmedabad-Mumbai routes.
The three new Shatabdi services will run between Pune-Secunderabad, Jaipur-Agra and Ludhiana-Delhi.
The minister announced the introduction on pilot basis of a pan-India, multi-purpose 'Go India' smart card, which would be a single-window package for passengers for seamless payment for tickets for long distances, suburban, metro journeys. The card can be used at booking counters and on the internet.
Higher outlay without any hike in fares or freight rates, but some new concessions; some new lines, many new trains; upgrading of stations, safety provisions; new production and power units proposed
New Delhi: Following are highlights of the Railway Budget 2011-12 presented by Railway Minister Mamata Banerjee in Parliament today.
A decline of about 9% in US dollar revenues in a buoyant economic environment has come as a surprise, especially when MphasiS, a unit of HP, was on a steady growth path for the last several quarters
MphasiS shares tumbled by about 28% to Rs454.10 on Friday following a fall in the first quarter net profit which was below market expectations.
The company was quickly downgraded by IDFC Securities from 'outperformer' to 'underperformer' on account of the disappointing results. There are some unexplained U-turns in the company's first quarter results that raise certain questions, the brokerage said in a research report.
"A decline of about 9% in US dollar revenues in Q1 in a buoyant economic environment was surprising especially when the company was on a steady growth path over the last several quarters (5.8% and 5.4% CQGR for the last four quarters and eight quarters, respectively)," IDFC stated in the report. "The company had not indicated any challenges on the growth front at the recent analysts' meet; on the contrary, it spoke about 2,400 open positions in applications/ ITO as of October 2010 end."
For the first quarter to end-January, the IT and BPO company reported a fall in net profit at Rs226.70 crore even as its total revenues increased to Rs1,233.50 crore from the corresponding period a year ago. During the quarter, MphasiS, which is majority-owned by Hewlett-Packard Co, reported a 10% fall in HP channel revenues to Rs840 crore, while its direct channel revenues declined 3% to Rs380 crore. The company's days sales outstanding (DSO) increased significantly to 94 days from the historical range of 70-80 days.
MphasiS follows a fiscal year from November through October, in line with the practice at H-P, which acquired MphasiS' parent Electronic Data Systems Corp. in May 2008. Hewlett-Packard also reported lower-than-expected results for the first quarter to end-January. The company registered a 4% increase in revenues at $32.3 billion from $31.1 billion a year ago. Mphasis derives more than 85% revenue from ITO and application services, and both these businesses have been weak in the case of HP.
IDFC said, MphasiS has reduced disclosure levels. It has stopped reporting revenues/segment profits by earlier segment definitions (application, ITO and BPO) and instead now presents segment reporting by verticals. The company has also stopped reporting other details like revenues by geographies and billing rates.
"Whether quarter-on-quarter (q-o-q) decline is a change in growth trajectory or just a quarterly hiccup is still debatable. However, even a quarterly hiccup warrants significant cuts in earnings per share (EPS)-we reduce our Oct-11 estimated (E) EPS by about 18% and Oct-12E EPS by around 14%-despite building a 6% compounded quarterly growth rate (CQGR) for the next seven quarters. We now value MphasiS at Rs610, based on 14x Oct-11E EPS (from Rs850 based on 15x Oct-11E EPS). We do not roll forward earnings and reduce our target multiple by a notch to account for the reduced confidence on business growth. Downgrade MphasiS stock to underperformer," the brokerage stated.
The MphasiS stock closed the day at Rs448.40 on the Bombay Stock Exchange, down 28.43%, while the benchmark Sensex was up 0.4% at 17,700 points today.