Operating ratio gives u the idea about the total earning and total expenditure. If Operating ratio is High then your Expenditure is more than your Earning. If your Operating ratio is Low then your Earning is more than your Expenditure, that mein you r making Profit.
Here say if SER is Earning Rs 100 then working Expenditure is Rs. 64.86.
For ER Earning is say Rs 100 but working Expenditure is Rs 169.75. So, Expenditure of ER is more than Earning. This brings down the overall Operating ratio of Indian Railways.