Indian Railway Finance Corporation Ltd
Indian Railway Finance Corporation Ltd (IRFC) is the financing arm of the Indian Railways, Government of India Enterprise, under the Ministry of Railways (MoR). The Co’s principal business is to borrow funds from the financial markets to finance the acquisition/creation of assets which are then leased out to the Indian Railways. [1]
- Market Cap ₹ 40,708 Cr.
- Current Price ₹ 31.2
- High / Low ₹ 37.1 / 19.3
- Stock P/E 6.30
- Book Value ₹ 33.3
- Dividend Yield 4.49 %
- ROCE 5.11 %
- ROE 15.8 %
- Face Value ₹ 10.0
Pros
- Stock is trading at 0.93 times its book value
- Stock is providing a good dividend yield of 4.49%.
- Company has delivered good profit growth of 45.5% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 20.4%
Cons
- Company has low interest coverage ratio.
- Tax rate seems low
- Company has a low return on equity of 13.8% over last 3 years.
- Company might be capitalizing the interest cost
* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.
Peer comparison
Sector: Finance Industry: Finance - Term-Lending Institutions
Quarterly Results
Figures in Rs. Crores
Profit & Loss
Figures in Rs. Crores
Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | TTM | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
4,642 | 5,550 | 6,197 | 6,939 | 7,507 | 9,047 | 9,267 | 11,134 | 13,421 | 15,771 | 20,299 | 22,465 | |
9 | 22 | 19 | 34 | 38 | 26 | 38 | 48 | 66 | 113 | 123 | 148 | |
Operating Profit | 4,633 | 5,528 | 6,178 | 6,905 | 7,468 | 9,021 | 9,229 | 11,085 | 13,355 | 15,657 | 20,177 | 22,317 |
OPM % | 100% | 100% | 100% | 100% | 99% | 100% | 100% | 100% | 100% | 99% | 99% | 99% |
1 | 2 | 1 | 1 | 1 | 0 | 1 | -0 | 0 | 0 | 2 | 3 | |
Interest | 3,620 | 4,075 | 4,607 | 4,992 | 5,519 | 6,888 | 6,638 | 8,183 | 10,163 | 11,237 | 14,075 | 15,842 |
Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 14 | 15 |
Profit before tax | 1,013 | 1,454 | 1,572 | 1,914 | 1,950 | 2,133 | 2,592 | 2,902 | 3,192 | 4,416 | 6,090 | 6,463 |
Tax % | 53% | 64% | 55% | 60% | 56% | 56% | 21% | 22% | 0% | 0% | 0% | |
Net Profit | 481 | 522 | 701 | 758 | 849 | 934 | 2,055 | 2,255 | 3,192 | 4,416 | 6,090 | 6,462 |
EPS in Rs | 228.73 | 221.76 | 209.04 | 211.58 | 187.50 | 143.08 | 3.15 | 2.40 | 2.69 | 3.38 | 4.66 | 4.94 |
Dividend Payout % | 21% | 21% | 6% | 20% | 40% | 40% | 18% | 18% | 0% | 31% | 30% |
Compounded Sales Growth | |
---|---|
10 Years: | 16% |
5 Years: | 18% |
3 Years: | 22% |
TTM: | 27% |
Compounded Profit Growth | |
---|---|
10 Years: | 29% |
5 Years: | 46% |
3 Years: | 39% |
TTM: | 17% |
Stock Price CAGR | |
---|---|
10 Years: | % |
5 Years: | % |
3 Years: | % |
1 Year: | 35% |
Return on Equity | |
---|---|
10 Years: | 13% |
5 Years: | 14% |
3 Years: | 14% |
Last Year: | 16% |
Balance Sheet
Figures in Rs. Crores
Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Sep 2022 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2,102 | 2,352 | 3,352 | 3,584 | 4,526 | 6,526 | 6,526 | 9,380 | 11,880 | 13,069 | 13,069 | 13,069 | |
Reserves | 3,049 | 3,442 | 3,978 | 4,555 | 4,999 | 5,483 | 7,402 | 15,648 | 18,419 | 22,845 | 27,928 | 30,481 |
50,251 | 58,753 | 69,917 | 71,270 | 87,503 | 106,395 | 134,006 | 173,933 | 234,377 | 323,145 | 388,440 | 386,733 | |
4,674 | 6,208 | 6,683 | 8,238 | 11,372 | 11,245 | 13,534 | 7,642 | 10,828 | 21,423 | 20,544 | 34,915 | |
Total Liabilities | 60,076 | 70,755 | 83,930 | 87,647 | 108,400 | 129,650 | 161,468 | 206,604 | 275,504 | 380,482 | 449,980 | 465,198 |
13 | 13 | 13 | 12 | 12 | 12 | 11 | 11 | 11 | 45 | 38 | 31 | |
CWIP | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Investments | 15 | 13 | 11 | 9 | 8 | 8 | 14 | 13 | 12 | 12 | 10 | 10 |
60,048 | 70,729 | 83,906 | 87,626 | 108,381 | 129,630 | 161,443 | 206,579 | 275,482 | 380,424 | 449,932 | 465,157 | |
Total Assets | 60,076 | 70,755 | 83,930 | 87,647 | 108,400 | 129,650 | 161,468 | 206,604 | 275,504 | 380,482 | 449,980 | 465,198 |
Cash Flows
Figures in Rs. Crores
Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | |
---|---|---|---|---|---|---|---|---|---|---|---|
-16,378 | -19,455 | -28,076 | -41,748 | -62,701 | -89,907 | -64,412 | |||||
2 | 2 | 2 | 1 | 1 | 0 | -5 | |||||
17,582 | 18,250 | 28,075 | 41,749 | 62,697 | 90,202 | 64,266 | |||||
Net Cash Flow | 1,206 | -1,204 | 0 | 3 | -2 | 296 | -151 |
Ratios
Figures in Rs. Crores
Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | |
---|---|---|---|---|---|---|---|---|---|---|---|
Debtor Days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Inventory Days | |||||||||||
Days Payable | |||||||||||
Cash Conversion Cycle | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working Capital Days | -27 | -171 | -17 | 221 | 295 | 263 | 5,869 | 6,326 | 7,020 | 8,137 | 7,593 |
ROCE % | 9% | 9% | 9% | 8% | 8% | 7% | 6% | 6% | 5% | 5% |
Documents
Announcements
- Board Meeting Intimation for Board Meeting Intimation For Intimation Of Board Meeting Scheduled To Be Held On 13Th February, 2023 2 Feb
- Intimation Regarding Additional Charge Of The Post Of CMD/IRFC 16 Jan
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Compliances-Certificate under Reg. 74 (5) of SEBI (DP) Regulations, 2018
9 Jan - Disclosure under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
- Closure of Trading Window 30 Dec 2022
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Announcement under Regulation 30 (LODR)-Newspaper Publication
12 Nov 2022 - Newspaper publication under Regulation 47 of SEBI(LODR) Regulations, 2015
Concalls
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Aug 2022Transcript PPT
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May 2022Transcript PPT
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Feb 2022Transcript PPT
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Jan 2022TranscriptPPT
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Nov 2021Transcript PPT
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Aug 2021Transcript PPT
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Jun 2021TranscriptPPT
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Feb 2021Transcript PPT
Services
Leasing Operations: The Co. follows a leasing model to finance the rolling stock assets and project assets of Indian Railways. The lease period is typically for 30 years, comprising a primary component of 15 years followed by a secondary period of 15 years. As part of the lease, recovery of the principal component and interest is affected during the primary lease period and at the end of the lease, assets are typically sold to the MoR for a nominal price.
Lending Operations: The Co. is also present in lending activities and has provided funds to various companies in the Railway sector like Rail Vikas Nigam Limited (RVNL), Konkan Railway Corporation Limited, Rail Land Development Authority, Railtel Corporation of India, and Pipavav Railway Corporation Limited.
Borrowing Operations: The Co. borrows funds from sources like taxable and tax-free bonds issuances, term loans from banks and financial institutions, commercial papers, external commercial borrowings, etc. The funding plan of IRFC is carried out with the prime objective to minimize its borrowing costs. [1]