IRFC Q3 results: Net profit rises 16% to ₹2,934 cr, declares dividend of ₹1.05 per share
2 min read 14 Feb 2021, 05:51 PM ISTIRFC's total revenue from operation grew by 10.76% on year-on-year basis for Dec-quarter to ₹11,315.51 cr
PremiumThe Indian Railway Finance Corporation Ltd on Sunday posted net profit growth of 15.65% to ₹2,934 crore for the quarter ended 31 December, 2020. The company has reported a net profit of ₹2,537 crore for the corresponding nine months in the previous year.
IRFC is a dedicated financing arm of the Indian Railways for mobilising funds from domestic as well as overseas markets.
The total revenue from operation grew by 10.76% on year-on-year basis for the same period to stand at ₹11,315.51 crore.
The company's board has also declared an interim dividend of ₹1,380 crore translating to Rs.1.05 per share for the financial year 2020-21, on a face value of ₹10 per equity share, IRFC said in a statement.
The annual disbursement for IRFC grew more than ten-fold to Indian Railways, from ₹11,000 crore in FY15 to Rs. 1.13 lakh crore mandated for the FY21, the company further stated.
"The Assets Under Management (AUM) is set to cross Rs. 3.75 trillion at the end of the current fiscal, registering a Compounded Annual Growth Rate (CAGR) of around 30 per cent over the last five years," IRFC said.
Commenting on the financial results, Amitabh Banerjee, Chairman and Managing Director, IRFC, said, “The massive investment plan that Indian Railways has drawn for the growth, expansion and modernization of Indian Rail System in the current decade and the fact that a significant portion of the funding requirement is to be met through IRFC, there will be sustained growth in revenue and profitability in future. This can be substantiated by the results which we have witnessed for the 9M FY2021 results. We are also happy to announce a dividend of Rs. 1.05 per share to our shareholders."
Its papers command a premium of at least 20 to 30 bps in the domestic financial market and 50 to 60 bps in the overseas financial markets as compared to its peers.
"This can be attributed to the strong linkages with the government, highest possible credit rating from the domestic credit rating agencies and rating at par with sovereign from international credit rating agencies, strong financials with zero Non-Performing Assets and strong Capital Adequacy Ratio of more than 400%, which is unique to a finance company and its constant endeavor for optimum diversification of borrowing portfolio in terms of markets, instruments and investors."
Banerjee also added, “The Company is in the process of drawing strategies for making selective forays into areas having forward and backward linkages with Railways with the backing of the Government of India, that will give further boost the growth in revenue and profitability of the Company."
