Indian Railway Finance Corporation (IRFC) Ltd announced a notable 34% increase in its profit to Rs 1,717.3 crore for the March 2024 quarter, attributed to higher income. This surge marks a significant rise from the profit of Rs 1,285.2 crore recorded during the fourth quarter of the previous fiscal year, as per the state-owned company’s regulatory filing.
The company’s stock price surged by 3.67% to Rs 179.55 on the BSE during early trading on May 21 in response to the positive financial results.
IRFC’s total income for the January-March quarter rose to Rs 6,477.9 crore from Rs 6,230.2 crore in FY23. Meanwhile, expenses for the period amounted to Rs 4,760.6 crore, compared to Rs 4,945 crore a year ago.
In addition to the financial results, IRFC’s board approved a final dividend of 70 paise per share for the financial year 2023-24. Furthermore, the board sanctioned the raising of resources for the financial year 2024-25, up to Rs 50,000 crore from both domestic and international markets.
The corporation plans to raise funds “through a prudent mix of tax-free bonds, taxable bonds on private placement or public issue basis,” including various types of bonds such as capital gain bonds, government-guaranteed bonds, and government-serviced bonds.
IRFC, operating under the Ministry of Railways, primarily aims to meet a significant portion of the Indian Railways’ extra budgetary resources (EBR) requirement through market borrowings, ensuring competitive rates and terms.
