Indian Railway Finance Corporation (IRFC) Q4 23/24 earnings summary

Executive summary

• Achieved revenue from operations of ₹26,644.58 crore in FY 2023-24, up 12.32% year-over-year. Profit after tax rose 3.97% to ₹6,412.10 crore. Net worth increased to ₹49,178.57 crore, and AUM reached ₹4,64,641 crore.

• Maintained a robust cost-plus lease model, supporting Indian Railways' expansion and modernization. No new rolling stock leased in FY24, but significant project asset leasing continued.

Financial highlights

• Revenue from operations grew by ₹2,923.16 crore year-over-year. EBITDA margin remained strong, and PAT margin was 24.06%.

• Debt-equity ratio improved to 8.38x from 9.38x last year. Return on net worth was 13.04%.

• No provision for tax due to adoption of Section 115BAA; zero tax liability for FY24.

• Interim dividend of ₹0.80/share and proposed final dividend of ₹0.70/share, totaling ₹1.50/share.

Outlook and guidance

• Board approved a borrowing limit of ₹50,000 crore for FY 2024-25 to meet Indian Railways' funding needs, new business, and refinancing.

• Exploring diversification into projects with forward and backward linkages to railways, including dedicated freight lines, high-speed corridors, and renewable energy.

• Positioned to leverage India's infrastructure growth and government initiatives like PM Gati Shakti.