In the quarter ending March 31, 2024, Hyderabad Metro Rail witnessed a decline in performance, with notable losses attributed to the implementation of the Mahalakshmi scheme. This initiative, aimed at providing free bus entitlement to women, has significantly affected the metro’s average ridership, impacting its financial standings.
Decrease in Ridership
The official figures released by Larsen & Toubro (L&T), the conglomerate behind Hyderabad Metro Rail, indicate a rise in average ridership per day from 4.08 lakh passengers in Q4FY23 to 4.41 lakh passengers in Q4FY24. However, this growth is overshadowed by the previous quarter’s average ridership of 4.44 lakh passengers per day, showcasing a slight decline in performance.
Mahalakshmi Scheme’s Influence
P. Ramakrishnan, Head of Investor Relations at L&T Limited, highlighted during the Q4FY24 financial report that the decrease in ridership can be primarily attributed to the impact of the Mahalakshmi scheme on passenger numbers. The provision of free bus entitlement for women has altered commuters’ preferences, leading to a shift away from metro usage.
Prospects of Recovery
Despite the current challenges, R Shankar Raman, Chief Financial Officer at L&T, expressed optimism regarding the potential recovery of Hyderabad Metro’s ridership. He suggested that the implementation of stricter mandates by IT companies for employees to return to office work could serve as a catalyst for boosting ridership.
IT Sector Influence
R Shankar Raman highlighted the influence of IT companies, noting that incentives such as promotions and salary increases upon returning to the office might encourage employees to opt for metro commuting over remote work. However, the extent of this impact remains uncertain, pending the actual response of employees to the transition.
Conclusion
The performance decline of Hyderabad Metro Rail in Q4FY24, attributed largely to the Mahalakshmi scheme, underscores the significance of external factors on public transportation systems. While challenges persist, the proactive measures suggested by L&T’s executives offer hope for potential recovery in ridership and financial stability.
Frequently Asked Questions
1. What is the Mahalakshmi scheme?
The Mahalakshmi scheme is an initiative offering free bus entitlement to women, aimed at enhancing their mobility and accessibility to public transportation.
2. How has the Mahalakshmi scheme impacted Hyderabad Metro’s performance?
The implementation of the Mahalakshmi scheme has led to a decline in Hyderabad Metro’s average ridership, as commuters opt for alternative modes of transportation such as buses due to the scheme’s benefits.
3. What measures are being considered to mitigate the impact of the Mahalakshmi scheme on Hyderabad Metro?
Hyderabad Metro executives are exploring strategies such as stricter mandates from IT companies for employees to return to office work, which could potentially boost metro ridership. Additionally, incentives like promotions and salary increases upon returning to the office are being discussed to encourage metro usage.
