COMMENTS

VKMM sir,

You can see more details here

http://www.bmtcinfo.com/english/ach.htm

a. In 2007-2008 government reimbursements fell by about Rs 57 crores vs. 2006-2007.  That is about 2/3rd of the Rs.84 crores profit fall seen between those 2 years.

b. Volvos are brand new and probably depreciated only to the tune of 20-30%.  The other buses would probably be depreciated (in an accounting sense) to the tune of 75-80%.   Volvos are more expensive.  Adding 300 buses (which will also last 10 years), suddenly will increase capital employed to the tune of RS.225 crores. 

c. Might be instructive to compare the 9mths ending Jan '09 and Jan' 08 as well.  Gross receipts were up 15.8% and cost of operations were up 15.7%.  Nothing to indicate that Volvos are a parasite. 

d. BMTC has about 5400 buses of which some 300 are Volvos.  It has 5100 ordinary+Suvarna buses.  BEST http://bestundertaking.com/org_info.asp has about 3400 buses carrying 45 lakh passengers on just 335 routes.  It also has differentiated services (it had aircon buses as far back as 1996 - from Andheri Stn to WTC and Ghatkopar to WTC).  You will find a BEST bus covering every nook and corner of Bombay.  BMTC has a lot more potential with 5100 buses. (I have harped on this many times - e.g. not many routes cover 11th Main in Jayanagar or 9th cross / Ranga Shankara Road in JP Nagar). 

Hope this helps.

Srivathsa

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SB Sir ThanQ - like in Shakesperean Drama, I take a 'half bow and recede to the shadows only to appear...'

Asking for more figures? (In lighter vein, our Prajegalu are more interested in stats/FIGURES)  Here they are:

Year-wise break up of operating/non-operating revenues/expr/surplus or deficit:    

               last 3 years :  2005-06, 2006-07, 2007-08 (in crores)

Op. revenue:

1. (a) Rev.                      623.34,    707.43,   801.48

    (b) Expr:                     580.24     649.54    782.85

    (c) Surplus/deficit(-)     43.10       57.89       18.63 

Non-op. revenue:  (a)      80-06      180.15   138.32

                              (b)        8.18        13.72     16.72 

                              (c)       71.78       166.43  121.60

Pl.see earlier post for total effect of these transactions.

YEJAMAANRE,  subsidy / grants etc. : total grant recd. from Central Government stands at Rs.1076.01 crores, State Grant: 461.15 and State SUBSIDY Rs.5223.30 crores (vow!!).

Subsidy for what?!  May I have the opportunity of reserving my comments.

-Vasanth Mysoremath

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VKMM sir,

That is in lakh rupees. 

Fundamentally the figures do not prove anything conclusively.  An RTI to BMTC might help.

I think many of us here do not agree with your fundamental premise that Volvos are the reasons for the ills of BMTC blue buses.  They were just as good/bad even before Volvos came in by the 100s.  Nothing stops BMTC from cleaning buses properly or have functioning doors. etc

BEST - 335 routes - 3500 buses - 45 lakh passengers - more than 1200 passengers/bus/day

BMTC - 2000 routes, 5100 buses - 35 lakh passengers - 700 passengers/bus/day. 

BEST has some double deckers/BMTC has as many trailers - give and take.  Why then does BEST do a much better job.  That is a better question to ask, no?

Srivathsa

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Yejamaanre,

For  your personal  satisfaction for fundamentally proving something about figures pertaining to BMTC  accounts, please visit the following site:

http://www.cag.gov.in  without whose authenticated/certified accounts, under Section 619(4) of the Companies Act, BMTC cannot hold its Annual General Meetings year after year.

Fundamentally comparisons also does not prove anything since not all transport systems have compatible fundamentals.

- Vasanth Mysoremath

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You have all the stats, and the full picture VKMM sir. You know it all, and have everything figured out. We look forward to learning more on this forum. You are the winner on this BMTC post.

Let us dig deeper now - will be good to know more about BMTC numbers.

• Trends on non-operating revenue (break up between operating and non-operating total of about Rs 1000 crores). Need this because we need the real number which is year by year topline growth via operating revenue alone
• How do they amortize the capital expenditure (capex)  incurred on the buses? spread it over 5 years?
• Source of extra capital borrowed for new investments? What interest is being paid on this borrowed capital? How much is this interest hurting bottomline today?
• What are the operating expenses (opex) per bus? Figures for each type of bus (opex = maintenance + fuel charge, plus operating staff)?
• Taking amortized capex + interest paid on capex loans + opex into account, what are the possible break-even periods (will involve assumptions on revenue per bus)? This data for each type of bus.
• Average age of bus, esp the difference between average age of bus and the amortization period accounted for capital expense on each bus. Would the bus literally be free for the "post-amortization" period?
• Time horizon BMTC planned to get returns on some recent investment (on newer buses) - basically, asking for the business plan done for new investments (MBS, suvarna, Big10, Volvo etc). 5 years? 10 years?
• The gap (or ticket corruption) betwen expected and actual ticket sales - any estimates?

Let us dig more, and lay BMTC operations bare. That will be fun, more fun than opinionated perceptions !!

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