Indian Railway Finance Corporation (IRFC) Q2 24/25 earnings summary

Executive summary

• New CMD Manoj Kumar Dubey appointed, bringing over 30 years of experience in railway finance and logistics.

• Acts as the primary market borrowing arm for Indian Railways, with 99.03% of AUM exposed to the Ministry of Railways.

• AUM reached INR 4,62,282.60 crore as of September 30, 2024, with net worth at INR 51,464.12 crore.

• Profit after tax for HY1 FY25 was INR 3,189.47 crore, up 3.02% year-over-year.

• Interim dividend of INR 0.80 per share declared for FY25.

Financial highlights

• Average annual disbursement from FY18 to FY23 exceeded INR 60,000 crore, peaking at over INR 1 lakh crore in FY21.

• Net interest income for HY1 FY25 was INR 3,224.32 crore, a 4.37% increase year-over-year.

• Half-year revenue from operations reached INR 13,664.97 crore, up from INR 13,434.91 crore year-over-year.

• Debt-equity ratio improved to 7.83 times as of 30 September 2024.

• Weighted average cost of capital remains the lowest among peers.

Outlook and guidance

• Management expects renewed growth, focusing on expanding into infrastructure sectors beyond railways.

• Board approved financing of 20 BOBR rakes to NTPC for up to INR 700 crore.

• Entered MoUs with RITES and IIFCL for strategic collaboration.

• No specific growth or disbursement targets provided; clarity expected post government budget announcements.

• Plans to maintain steady pipeline from railways while growing non-railway infra lending.