Buoyant operations will boost Noida Toll earnings

Spurred by additional traffic facilitated by its new Mayur-Vihar link this year, the Noida Toll Bridge Company (NTBCL), the concessionaire for the Delhi Noida Toll Bridge, is expecting its net profit to double in the current financial year (FY08).

While profit was Rs 11 crore in FY07, it is expected to be around Rs 22 crore this year.

The company reported a profit of Rs 8.18 crore for the quarter ended September 30, 2007 as against Rs 2.14 crore in the corresponding quarter last year. The increased profit has been attributed by officials to higher income from operations.

Also, considering current projections, the toll revenue is expected to touch Rs 60 crore in FY08 (it was Rs 39 crore in FY06 and around Rs 50 crore in FY07), the profit margins may climb up significantly in coming years.

Apart from this, the operation and maintenance expenditure of projects (including the Mayur Vihar link) for this financial year were pegged at around Rs 4 crore, which gives a clear picture of the company's profitability.

The 7.5 km bridge over Yamuna, which connects Delhi with Noida, on an average attracts around 75,000 to 80,000 vehicles per day.

While the opening of the Mayur-Vihar link has added another 5,000 vehicles per day to its traffic, President and CEO Pradeep Puri says when the second Mayur

Vihar link opens next month, another 4,000 to 5,000 vehicles are expected to be added to the stretch.

With the traffic being quite buoyant, the profit will continue to strengthen at least for the next two to three years.

The company is also awaiting the Delhi government's approval of the proposed Kalindi bypass, which would be connecting the traffic from Faridabad and Gurgaon to Noida and Greater Noida, saving at least an hour of commuting time.

"Once the bypass comes around, we will provide a link to it, which would generate an additional traffic of 10,000 vehicles per day," says Puri.

As part of its diversification plans, the company has submitted a list of proposals to the Noida Authority, which includes the construction of another office block on the existing complex right next to the toll plaza.