Comparing Productivity and Profitability Performance: A Case Study of Uttar Pradesh State Road Transport Corporation
Indian Journal of Economics & Business, Vol. 13, No. 1, (2014) 97-114
18 Pages Posted: 13 Jul 2014
Date Written: July 12, 2014
This paper examines changes in productivity and profitability of Uttar Pradesh State Road Transport Corporation (UPSRTC) using its annual data from 1984-85 to 2009-10. Another objective of the paper is to demonstrate the usefulness of calculating the total price performance measure, i.e., tracking the growth of input factor prices relative to the prices received for the outputs. Analysis of data reveals that UPSRTC achieved tremendous growth in its productivity during the sample period but all of its productivity gains are passed on to its customers. That’s why there is virtually no change in its profitability from 1994-95 to 2009-10. However, there is a significant difference in the trend between first and second half of the sample period. In the first half, productivity growth was far lower than that in the second half whereas input factor prices compared with output prices increased rapidly. Due to this, UPSRTC’s financial performance worsened during the first half and improved during the second half of the sample period.
Keywords: Bus Transport, Productivity, Profitability, India
JEL Classification: D22, D24, L92, R48
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