2025, Vol. 6, Issue 2, Part L
Effect of employee expenditure on financial health of KSRTC: An analysis
Author(s): Chiranjeevi VB and Giridhar KV
Abstract: The study titled “Effect of Employee Expenditure on Financial Health of KSRTC-An Analysis” investigates the financial implications of staff costs on the Karnataka State Road Transport Corporation (KSRTC) over the period 2013-14 to 2023-24. KSRTC, as a major public sector transport undertaking, plays a pivotal role in providing affordable and reliable mobility across Karnataka. However, the persistent rise in staff costs has emerged as a critical challenge, consuming a significant share of operating revenues and influencing overall profitability. The research objectives focus on analysing the trend of staff costs, their proportion in total expenditure, the relationship between employee expenses and revenue generation, and the sustainability of current levels of employee spending. Using secondary data from annual reports, the study applies percentage analysis and trend evaluation to assess financial performance indicators such as operating profit margins and staff cost ratios. The findings reveal that in several years, staff costs exceeded 40% of operating revenue, peaking at 67.55% in 2020-21, leading to pressure on operating margins. The study concludes that without effective cost containment, revenue enhancement strategies, and operational efficiency improvements, the sustainability of KSRTC’s current employee expenditure is at risk, potentially affecting service quality and long-term viability.
DOI: 10.22271/27084515.2025.v6.i2l.831
Pages: 1063-1068 | Views: 89 | Downloads: 28
Download Full Article: Click Here
How to cite this article:
Chiranjeevi VB, Giridhar KV. Effect of employee expenditure on financial health of KSRTC: An analysis. Asian J Manage Commerce 2025;6(2):1063-1068. DOI: 10.22271/27084515.2025.v6.i2l.831
Other Journals