Indian Railway Finance Corporation Limited (IRFC), a prominent public sector enterprise under the Ministry of Railways, marked a significant milestone by recording its highest-ever quarterly revenue for Q2 of the fiscal year 2024-25. The company’s earnings for the quarter reached an impressive ₹6,900.20 crore, a 2.04% increase from ₹6,762.18 crore reported in the same quarter last year. This performance underscores IRFC’s robust role in financing Indian Railways’ infrastructure and development projects.

The standalone net profit after tax (PAT) for Q2 stood at ₹1,612.65 crore, demonstrating a 4.41% growth compared to ₹1,544.58 crore from Q2 FY 2023-24. Over the six months ending 30th September 2024, the company’s PAT reached ₹3,189.47 crore, rising from ₹3,095.86 crore in the corresponding period of the previous year.

Sustained Growth Despite Challenges

IRFC’s total income for the half-year period grew marginally by 1.70%, totaling ₹13,666.22 crore compared to ₹13,437.91 crore reported last year. The company’s earnings per share (EPS) for this period were noted at ₹2.44. Meanwhile, IRFC’s net worth showed a commendable increase of 9.77%, standing at ₹51,464.12 crore by the end of September 2024, up from ₹46,883.22 crore a year ago. The assets under management (AUM) reached ₹4,62,282.62 crore, reflecting the company’s expanding financing activities.

Strategic Diversification Initiatives

Manoj Kumar Dubey, Chairman and Managing Director of IRFC, highlighted the company’s ongoing efforts to diversify its lending portfolio beyond traditional railway projects to sectors linked with the railways’ supply chain. A recent move includes a ₹700 crore sanction to National Thermal Power Corporation (NTPC) under the General-Purpose Wagon Investment Scheme (GPWIS), enhancing logistics capabilities with 20 BOBR rakes.

Commitment to Shareholders

IRFC continues to prioritize shareholder value, demonstrated by its consistent dividend payouts. For FY 2024-25, the company declared an interim dividend of ₹0.80 per share (8%).

Expert Insights on Financial Prospects

Financial analysts have pointed out that IRFC’s steady income growth, despite economic challenges, emphasizes its resilient business model. The strategic push towards diversified lending is seen as a way to strengthen revenue streams and reduce risk exposure.

  Indian Railway Finance Corporation, IRFC, Manoj Kumar Dubey, Ministry of Railways, National Thermal Power Corporation, NTPC, Q2 Results