IR’s bottom lines are very thin as Salary and Pension accounts for about 65% of total revenue of IR making its fixed cost extremely high. Very high operating ratio of above 95% further adds to its woes. So a very high capacity utilisation is required to maintain cash flow.
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About one third of revenue component is passenger traffic which is negligible at present, about two third revenue comes from freight which is also badly affected, and IR is trying to maximise it to tide over its expenses. Unless industrial production...
more... picks up, there is little hope of higher than targeted loading.