Government-Backed Public Transport Company Reports Rs. 70.7 Million Net Loss
Sajha Yatayat, Nepal’s government-backed public transportation company, has reported a net loss of Rs. 70.7 million in the fiscal year 2081/82, despite posting a profit of Rs. 80.5 million just a year earlier.
According to the Public Enterprises Report published by the Ministry of Finance, the company’s financial performance weakened significantly due to declining revenue and reduced non-operational income.
The Government of Nepal holds a 92.18 percent stake in Sajha Yatayat, while the remaining 7.82 percent is owned by other institutions and individuals.
Revenue Drops by Nearly 25 Percent
The report shows that Sajha Yatayat’s sales revenue fell sharply from Rs. 540.7 million in fiscal year 2080/81 to only Rs. 410.5 million in fiscal year 2081/82. This marks a decline of 24.74 percent within a single year.
At the same time, the company’s administrative and employee-related expenses increased by 13.13 percent, putting additional pressure on the company’s financial condition.
Although administrative expenses remained around Rs. 33.6 million, rising operational costs combined with lower income pushed the company into loss.
CEO Explains Decline in Income
Sajha Yatayat Chief Executive Officer Bhupendra Aryal said the company’s operational income has historically remained weak, but previous profits were largely supported by interest income from government funds.
According to Aryal, the company had previously earned additional revenue from sources such as telecom tower rentals and interest generated from a Rs. 3 billion fixed deposit provided by the government.
“When interest rates on fixed deposits were around 12 to 13 percent, Sajha was able to show profits,” Aryal said. “Currently, interest rates have dropped to only around 2.5 to 3 percent, which significantly reduced our income.”
He added that Sajha Yatayat cannot compete aggressively like private transportation companies because it prioritizes public service over profit-making.
Focus on Public Service Over Profit
Aryal stated that Sajha Yatayat continues to provide free transportation services to senior citizens and people with disabilities. He emphasized that the company operates with a social service objective rather than purely commercial goals.
“It is difficult to make public transportation profitable,” he said. “Unlike private businesses, we cannot increase fares every time operational costs rise.”
Expansion Plan to Improve Revenue
To strengthen income and expand operations, Sajha Yatayat plans to add 50 new buses and launch long-distance interprovincial bus services in the coming years.
The federal government has invested Rs. 3.2614 billion in the company. Meanwhile, Sajha Yatayat’s net worth declined from Rs. 4.32 billion in fiscal year 2080/81 to Rs. 4.25 billion in fiscal year 2081/82, reflecting a 1.64 percent decrease over one year.
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