NSE: IRFC
Indian Railway Finance Corporation Ltd
NSE: IRFC Share Price
General NSE: IRFC Fundamentals
| Period | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
| Total Revenue | 26,645.36 | 23,891.83 | 20,299.26 | 15,770.47 |
| Selling/ General/ Admin Expenses Total | 11.17 | 25.40 | 22.10 | 15.83 |
| Depreciation/ Amortization | 9.44 | 14.06 | 14.03 | 4.43 |
| Other Operating Expenses Total | 125.66 | 111.61 | 99.85 | 94.42 |
| Total Operating Expense | 142.34 | 148.39 | 136.64 | 117.64 |
| Operating Income | 26,503.02 | 23,743.44 | 20,162.62 | 15,652.83 |
| Net Income Before Taxes | 6,412.10 | 6,337.01 | 6,090.16 | 4,416.13 |
| Net Income | 6,412.10 | 6,337.01 | 6,089.84 | 4,416.13 |
| Diluted Normalized EPS | 4.91 | 4.85 | 4.66 | 3.66 |
| Period | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
| Total Assets | 4,85,082.43 | 4,91,146.75 | 4,49,980.22 | 3,80,481.52 |
| Total Liabilities | 4,35,903.86 | 4,45,676.43 | 4,08,983.88 | 3,44,568.14 |
| Total Equity | 49,178.57 | 45,470.32 | 40,996.34 | 35,913.38 |
| Tangible Book Valueper Share Common Eq | 37.63 | 34.79 | 31.37 | 27.48 |
| Period | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
| Cashfrom Operating Activities | 7,914.10 | -28,583.83 | -64,412.28 | -89,906.65 |
| Cashfrom Investing Activities | -7.54 | 0.09 | -4.72 | 0.42 |
| Cashfrom Financing Activities | -8,046.42 | 28,643.28 | 64,266.30 | 90,202.04 |
| Net Changein Cash | -139.87 | 59.54 | -150.70 | 295.81 |
About Indian Railway Finance Corporation (IRFC)
Indian Railway Finance Corporation (IRFC) came about on 12th December 1986 and since then, this organization has been paramount when it comes to arranging international and local capital for Indian Railways. It has a place as a Schedule ‘A’ public sector undertaking under the Ministry of Railways and therefore is one of the primary scaffolds in the financial structure of Indian rail sector.
IRFC is registered with the Reserve Bank of India as a Non Deposit taking Non Banking Financial Company – Systemically Important (NBFC-ND-SI) and as a Non-Banking Financial Company – Infrastructure Finance Company (NBFC-IFC) and works with the vision to develop the rail sector of the economy.
Core Services That Define IRFC’s Role
1. Project Financing
– Funds rail infrastructure development projects through loans that guarantee the effective implementation of railway development projects.
2. Lease Financing
– Facilitates leasing of rolling stock and other railway assets which will help Indian Railways to enhance their business with no/lower initial expenditure.
3. Corporate Loans
– Provides operational and working loans to Indian Railways which guarantees them adequate funds for key undertakings.
Key Strengths That Set IRFC Apart
Strong Government Backing
– The operational consistency as well as the faith from the public is assured in the case of IRFC due to the unflinching support from the Government of India.
High Asset Quality
– With Indian Railways providing constant income, the company has low financial risk and strong asset management.
Diversified Financing Options
– Through several custom-made products and services, IRFC meets the financing requirements of a variety of railways.
A New Perspective on Future Issues
Dependence on Indian Way of Life
– Making a profit depends upon railway assets as there shall always be threat to Indian Railways’ financial performance irrelenant of IRFC’s activities.
Interest Rate Sensitivity
– International interest rates dependency may result to added costs in funding as rates are bound to affect the IRFC investment profitability.
Competitive Landscape
In the provision of financial services, IRFC operates in close competition to a few of the market leaders which include:
State Bank of India (SBI)
– Is a professional public sector bank with a long history in financing infrastructure including railways.
Bank of Baroda
– Has a wide range of banking solutions and provides patronage to public sector enterprises.
–Punjab National Bank (PNB)
– Is among the ten largest banks in India specializing in provision of banking and financial services for firms doing physical infrastructure projects.
The Development of India’s Railways as a Key Strategic Platform
Indian Rail Finance Corporation is the key funding agency for Indian Railways and therefore is very important in developing the country’s rail infrastructure. Though it has scale benefits are applicable in its operations, dependency and market volatility are other challenges which are part of its operations. IRFC’s dedication towards railways advancement is in evidence of its growth in India role.
FAQ about IRFC Share
What is IRFC, and why is its stock significant?
The Indian Railway Finance Corporation (IRFC) is a public sector enterprise under the Ministry of Railways. It provides funding for rail infrastructure and operations, making it a critical part of India’s rail development. IRFC’s stock is significant because it represents a stable investment opportunity, backed by the Indian government’s support and consistent revenues from Indian Railways.
Is IRFC stock a good investment?
IRFC stock can be a good investment for risk-averse investors seeking steady returns. It benefits from strong government backing, a monopoly in railway financing, and consistent revenue generation. However, investors should consider risks like dependence on Indian Railways and interest rate fluctuations.
What is the dividend policy of IRFC?
IRFC has a track record of paying dividends, supported by its stable income streams. Its dividend yield is often attractive for long-term investors. Specific rates may vary yearly, so checking the latest announcements is advisable.
What are the risks associated with investing in IRFC stock?
Key risks include:
Dependence on Indian Railways: IRFC’s financial performance is tied to Indian Railways’ operations.
Interest Rate Volatility: Changes in interest rates can increase borrowing costs and impact profitability.
Limited Diversification: As a specialized financial institution, it focuses solely on railway financing.
How does IRFC generate revenue?
IRFC generates revenue primarily by leasing rolling stock (locomotives, wagons, coaches) and funding railway infrastructure projects. Its income comes from interest and lease payments made by Indian Railways.
What factors influence IRFC’s stock price?
IRFC’s stock price is influenced by:
Government policies on infrastructure and rail development.
Financial health and operational performance of Indian Railways.
Changes in interest rates and borrowing costs.
Broader market sentiment toward public sector enterprises.
What is the future growth potential of IRFC stock?
IRFC has strong growth potential, driven by:
Expanding railway projects: India’s commitment to modernizing and expanding its rail network.
Rising infrastructure investment: Increased government focus on infrastructure development.
Monopoly status: IRFC’s exclusive role in financing Indian Railways gives it a competitive edge.
How can I buy IRFC stock?
You can buy IRFC stock through stockbrokers or online trading platforms listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India. Ensure you have a demat account and sufficient funds for the purchase.
What is the current market price of IRFC stock?
The market price of IRFC stock fluctuates daily based on demand, supply, and market trends. The current price is 149.34.
How does IRFC compare to other public sector stocks?
IRFC is distinct due to its monopoly in railway financing and stable revenue streams, making it less volatile than other public sector stocks. While it may lack high growth potential compared to industrial or banking stocks, it offers steady returns and low risk.