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16 Key Numbers Investors Should Know About SMRT Corporation Ltd

SMRT Corporation Ltd (SGX: S53) is a recognisable company for many in Singapore given that it runs a part of the country’s public bus, taxi, and rail services.

The business of SMRT Corporation can be divided into seven different segments: Train operations, Light Rail Transit (LRT) operations, Bus operations, Taxi operations, Rental, Advertising, and Engineering and Others. The first two are collectively referred to as its Rail business. The rest are considered Non-Rail businesses.

SMRT Corporation’s latest annual report was released just last month. To learn more about the company, here are 14 figures that investors might want to know:

  1. SMRT Corporation will celebrate its 30th anniversary in 2017. The land transport operator runs the North-South and East-West Line (NSEWL) as well as the Circle Line (CCL) of Singapore’s MRT (Mass Rapid Transit) system. Collectively, the three lines have a total route length of nearly 130 kilometers and span 84 stations. SMRT Corporation also operates the Bukit Panjang LRT system which runs across 14 stations.
  2. According to the annual report, SMRT Corporation was granted a license in 1998 to operate the NSEWL line for a period of 30 years until 2028. SMRT Corporation is also discussing a transition into the new rail financing framework. Investors may want to observe what the new framework brings.
  3. SMRT Corporation is the leader in MRT services in Singapore. The average daily ridership on the company’s lines is about 2 million passenger trips. In contrast, SBS Transit Ltd (SGX: S61), an industry-peer of SMRT Corporation, had ferried less than a million passengers a day in 2015 in its Rail business.
  4. SMRT Corporation is not about MRT services alone. In late 2001, the transport firm acquired bus operator TIBS Holdings. SMRT Corporation has a fleet of over 1,400 buses plying Singapore’s roads. Average daily ridership is about 1 million passenger trips. Furthermore, SMRT Corporation also has a taxi fleet of over 3,500 taxis. This makes it Singapore’s third largest taxi operator.
  5. SMRT Corporation recorded nearly $1.3 billion in revenue in its fiscal year ended 31 March 2016 (fiscal 2016). The Rail business accounted for over 52% of revenue. But, the picture is different for the company’s earnings before interest and taxes (EBIT). Here, the company’s Rental business made up almost 77% of EBIT for fiscal 2016.
  6. A peek into the company’s cost structure might be enlightening. SMRT Corporation made $681 million in revenue for its Rail operations in fiscal 2016. Staff cost amounted to 42% its revenue. Energy costs accounted for almost 14%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.