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India Equity Research Reports, IPO and Stock News
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http://www.icicidirect.com/mailimages/ICICIdirect_RailBudgetReview_2012-13.pdf
R a i l B u d g e t ‘ 1 2 - 1 3 : E c o n o m i c s s h r u g s o f f p o l i t i c s …
Our take on Rail Budget
ƒ The Rail Minister finally bit the bullet and presented a fair and
practical Rail Budget 2012-13. For the first time in nine years,
passenger fares were hiked in the range of 2 paisa per kilometre
to 30 paisa per kilometre (~16%) in various categories of trains.
The Budget estimates for FY13 set a target of | 1,32,552 crore
(assuming freight loading target of 1025 MT and passenger
growth of 5.4% as per Budget Estimates) for gross traffic, which
is ~27.6% higher than FY12 (RE)
ƒ The target for operating ratio for FY13 (BE) has been set at 84.9%
on account of passengers fare hike and freight rate hike
(announced on March 6, 2012 by ~20%)
ƒ We believe this budget presents a realistic picture compared to
the previous years’ budget in terms of operational performance.
However, on the investment side the budget estimates seems to
be ambitious considering a quantum jump in investment outlay
of the Twelfth Five Year Plan investment to | 7.35 lakh crore from
| 1.92 lakh crore in the Eleventh Five Year Plan
ƒ For FY12, Indian Railways has reduced the loading target by 23
million tonnes (MT) to 970 MT, primarily on account of a ban on
export of iron ore mining by the Karnataka and Odisha state
governments. The loading target for FY13 (BE) has been set at
1025 MT, an increase of 5.7%. Lower passenger growth rate of
5.1% against target 5.9% has resulted in a scale down of
passenger earnings by | 1,656 crore. The operating ratio has
been revised to 95% in FY12 (RE)
ƒ The highest ever annual plan (capex) of | 60,100 crore is to be
met through gross budgetary support of | 24,000 crore, market
borrowings of | 15,000 crore through the Indian Railway Finance
Corporation (IRFC), railway safety fund of | 2,000 crore, internal
resources of | 18,050 crore and | 1,050 crore through external
source of financing through PPP
ƒ Out of the annual plan, | 6,872 crore has been provided for new
lines, | 3,393 crore for doubling, | 1,950 crore for gauge
conversion and | 18,193 crore for acquisition of rolling stock
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.icicidirect.com/mailimages/ICICIdirect_RailBudgetReview_2012-13.pdf
R a i l B u d g e t ‘ 1 2 - 1 3 : E c o n o m i c s s h r u g s o f f p o l i t i c s …
Our take on Rail Budget
ƒ The Rail Minister finally bit the bullet and presented a fair and
practical Rail Budget 2012-13. For the first time in nine years,
passenger fares were hiked in the range of 2 paisa per kilometre
to 30 paisa per kilometre (~16%) in various categories of trains.
The Budget estimates for FY13 set a target of | 1,32,552 crore
(assuming freight loading target of 1025 MT and passenger
growth of 5.4% as per Budget Estimates) for gross traffic, which
is ~27.6% higher than FY12 (RE)
ƒ The target for operating ratio for FY13 (BE) has been set at 84.9%
on account of passengers fare hike and freight rate hike
(announced on March 6, 2012 by ~20%)
ƒ We believe this budget presents a realistic picture compared to
the previous years’ budget in terms of operational performance.
However, on the investment side the budget estimates seems to
be ambitious considering a quantum jump in investment outlay
of the Twelfth Five Year Plan investment to | 7.35 lakh crore from
| 1.92 lakh crore in the Eleventh Five Year Plan
ƒ For FY12, Indian Railways has reduced the loading target by 23
million tonnes (MT) to 970 MT, primarily on account of a ban on
export of iron ore mining by the Karnataka and Odisha state
governments. The loading target for FY13 (BE) has been set at
1025 MT, an increase of 5.7%. Lower passenger growth rate of
5.1% against target 5.9% has resulted in a scale down of
passenger earnings by | 1,656 crore. The operating ratio has
been revised to 95% in FY12 (RE)
ƒ The highest ever annual plan (capex) of | 60,100 crore is to be
met through gross budgetary support of | 24,000 crore, market
borrowings of | 15,000 crore through the Indian Railway Finance
Corporation (IRFC), railway safety fund of | 2,000 crore, internal
resources of | 18,050 crore and | 1,050 crore through external
source of financing through PPP
ƒ Out of the annual plan, | 6,872 crore has been provided for new
lines, | 3,393 crore for doubling, | 1,950 crore for gauge
conversion and | 18,193 crore for acquisition of rolling stock
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