Introduction of Indian railway finance corporation
IRFC is a Public sector undertaking (PSU) under the ministry of Railway, government of India. It is the dedicated arm of Indian railway for Financial Support. it was established in 1986.
WhatIndian railway finance corporation does
Arranging Fund for expansion of high speed rail corridor,
Infrastructure development provide financial support including electrification, signaling and modernization. it purchases assets and leases them to Indian railway which pays rentals overtime.
It procurement, rolling stocks, locomotives, wagons, coaches, and other rolling stocks railway for Indian railway.
It also arranges finance for Indian railway through various means such as bonds loans and equity to finance project for Indian Railway.
Recent Monthly Chart of Indian railway finance corporation
Financial of Indian railway finance corporation
financial metrics of Indian Railway Finance Corporation (IRFC) for the fiscal year ending March 31, 2024
Metric Value
Net Profit ₹6,412.10 crore
Net Profit Margin 24.1%
Return on Equity (ROE) 13.66%
Debt-to-Equity Ratio 786.7%
Net Interest Margin 112.6%
Return on Average Assets 1.31%
Price-to-Earnings (P/E) Ratio 29.02
Price-to-Book (P/B) Ratio 3.26
Earnings Per Share (EPS) Growth 3.97%
Compounded Annual Profit Growth (3 Years) 13.24%
Share Holders in Indian railway finance corporation
Category Percentage (%) Number of Shares
Promoter 86.36% 11,28,64,37,000
Public Shareholding 13.64% 1,78,20,69,000
- Retail and Others 11.39% Not specified
- Foreign Institutional Investors (FII) 1.01% Not specified
- Other Domestic Institutions 1.00% Not specified
- Mutual Funds 0.24% Not specified
Cons Of the Indian railway finance corporation
Sole financial arm of Indian railway. IRFC is a government owned enterprise giving it a strong credit rating and stability steady growth, prospects, consistent revenue, model. company generates predictable, and stable Cash flows through lease rentals and interesting income from Indian railway.
This is low risk business models ensure financial stability and long-term sustainability, attractive dividend payouts high divide dividend yield long-term contracts. IRFC has long-term contracts with Indian railways, ensuring consistent and issued revenue stream for the future it’s unique business model minimize the risk from market volatility increasing asset base IRFC has shown a consistent increasing in its asset base reflecting its expanding role in financing railway projects, green and sustainable financing. IRFS has issued green bonds to for environmentally sustainable projects like electric and renewable energy initiative for Indian railway this aligns with the India’s goal of achieving net zero carbon emissions by 2030.
Cons Of IRFC : Indian railway finance corporation Share
dependence on Indian railways IRFC entirely business is heavily depend on Indian railway any financial challenges faced by Indian railway could affect the IRFC growth.
Interest rate sensitivity it’s operations are influenced by interest rate fluctuations, rising rates can increase borrowing cost, which will impact profitability.
Low growth potential.
Limited diversification as it works only for Indian railway.
Government intervention, IRFC, subject to government policies and regulations.
