Indian Railway Finance Corporation shares rise by 2.11%

By Admin

07 Jun, 2025

Shares of Indian Railway Finance Corporation (IRFC) witnessed a notable 2.11% surge during today’s trading session, climbing to Rs 143.78. As a part of both the NIFTY NEXT 50 and NIFTY 100 indices, IRFC's upward movement reflects market confidence and investor interest in this state-run financial giant that plays a crucial role in funding Indian Railways' operations and expansions.

Financial Overview

Standalone Quarterly Performance

For the March 2025 quarter, IRFC reported sales of Rs 6,723 crore, a rise from Rs 6,473 crore in March 2024. Despite this increase in revenue, net profit slightly dipped to Rs 1,681 crore, compared to Rs 1,717 crore in the same quarter of the previous year.

Standalone Annual Performance

Over a longer period, IRFC has demonstrated consistent growth:

• Sales grew from Rs 15,770 crore in March 2021 to Rs 27,152 crore in March 2025.
  
  

• Net profit also showed upward momentum, increasing from Rs 4,416 crore to Rs 6,502 crore over the same period.
  
  

Cash Flow Strength

IRFC's financial resilience is also reflected in its cash flow:

• Cash flow from operating activities stood at Rs 8,229 crore in March 2025.
  
  

• Despite financing activities showing a negative cash flow of Rs -2,571 crore, the net cash flow remains strong at Rs 5,657 crore.
  
  

Assets and Liabilities

IRFC maintains a balanced financial sheet with total assets and liabilities both at Rs 488,834 crore as of March 2025, highlighting a well-managed balance sheet structure.

Key Financial Ratios

The company's financial ratios provide deeper insights into its performance:

• Basic & Diluted EPS increased to Rs 4.98 from Rs 3.66 in 2021.
  
  

• Book Value per Share rose to Rs 40.30 from Rs 27.48 in 2021.
  
  

• Dividend per Share also saw a healthy increase from Rs 1.05 to Rs 1.60.
  
  

Profitability & Efficiency

IRFC showcases impressive profitability metrics:

• Net Profit Margin stood at 23.94% in March 2025.
  
  

• Return on Equity (ROE) was 12.34%, and Return on Capital Employed (ROCE) stood at a strong 49.98%, underscoring its operational efficiency.
  
  

Leverage & Turnover

The company’s Debt to Equity ratio of 7.83 indicates a leveraged capital structure common in financing companies.

• Interest Coverage Ratio was 1.32, while Asset Turnover Ratio was 0.06%, reflecting the nature of IRFC's asset-heavy business model.
  
  

Growth & Valuation

IRFC has maintained a steady growth trajectory:

• 3-Year CAGR for Sales was 15.66%, while Net Profit CAGR was 3.33%.
  
  

• The P/E ratio stood at 24.98, and the P/B ratio was 3.09, suggesting moderate valuation levels relative to earnings and book value.
  
  

Conclusion

The 2.11% rise in IRFC's stock price to Rs 143.78 signals positive market sentiment, likely fueled by consistent financial performance and solid fundamentals. As IRFC continues to play a pivotal role in India's infrastructure financing, particularly for Indian Railways, it remains an entity to watch in the broader economic landscape.