Indian Railway Finance Corporation Ltd

₹ 20.0 1.53%
01 Jul - close price
About

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]

Key Points

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]

  • Market Cap 26,072 Cr.
  • Current Price 20.0
  • High / Low 26.4 / 19.3
  • Stock P/E 4.28
  • Book Value 31.4
  • Dividend Yield 5.26 %
  • ROCE 5.12 %
  • ROE 15.8 %
  • Face Value 10.0

Pros

  • Stock is trading at 0.64 times its book value
  • Stock is providing a good dividend yield of 5.26%.
  • Company has delivered good profit growth of 45.50% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 20.37%

Cons

  • Company has low interest coverage ratio.
  • Tax rate seems low
  • Company has a low return on equity of 13.81% for 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.

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Quarterly Results

Figures in Rs. Crores

Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022
3,641 3,206 3,669 3,714 3,932 4,455 4,582 4,690 5,096 5,932
8 51 37 19 7 51 3 28 9 82
Operating Profit 3,633 3,154 3,633 3,695 3,925 4,404 4,578 4,662 5,087 5,849
OPM % 100% 98% 99% 100% 100% 99% 100% 99% 100% 99%
0 0 0 0 0 0 0 0 1 1
Interest 2,726 2,500 2,741 2,700 2,878 2,918 3,073 3,157 3,491 4,353
Depreciation 0 0 0 0 0 4 3 3 3 5
Profit before tax 907 655 892 995 1,047 1,483 1,502 1,501 1,594 1,493
Tax % 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Net Profit 907 655 892 995 1,047 1,483 1,502 1,501 1,594 1,492
EPS in Rs 0.55 0.75 0.84 0.88 1.13 1.15 1.15 1.22 1.14

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
4,642 5,550 6,197 6,939 7,507 9,047 9,267 11,134 13,421 15,771 20,299
9 22 19 34 38 26 38 48 66 113 123
Operating Profit 4,633 5,528 6,178 6,905 7,468 9,021 9,229 11,085 13,355 15,657 20,177
OPM % 100% 100% 100% 100% 99% 100% 100% 100% 100% 99% 99%
1 2 1 1 1 0 1 -0 0 0 2
Interest 3,620 4,075 4,607 4,992 5,519 6,888 6,638 8,183 10,163 11,237 14,075
Depreciation 0 0 0 0 0 0 0 0 0 4 14
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
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
EPS in Rs 2.69 3.38 4.66
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: 29%
Compounded Profit Growth
10 Years: 29%
5 Years: 46%
3 Years: 39%
TTM: 38%
Stock Price CAGR
10 Years: %
5 Years: %
3 Years: %
1 Year: -18%
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
2,102 2,352 3,352 3,584 4,526 6,526 6,526 9,380 11,880 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
50,251 58,753 69,917 71,270 87,503 106,395 134,006 173,933 234,377 323,111 388,440
4,674 6,208 6,683 8,238 11,372 11,245 13,534 7,642 10,828 19,028 20,544
Total Liabilities 60,076 70,755 83,930 87,647 108,400 129,650 161,468 206,604 275,504 378,052 449,980
13 13 13 12 12 12 11 11 11 45 38
CWIP 0 0 0 0 0 0 0 0 0 0 0
Investments 15 13 11 9 8 8 14 13 12 12 10
60,048 70,729 83,906 87,626 108,381 129,630 161,443 206,579 275,482 377,994 449,932
Total Assets 60,076 70,755 83,930 87,647 108,400 129,650 161,468 206,604 275,504 378,052 449,980

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 8,136 7,305
ROCE % 9% 9% 9% 8% 8% 7% 6% 6% 5% 5%

Shareholding Pattern

Numbers in percentages

Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022
86.36 86.36 86.36 86.36 86.36
1.44 0.86 1.06 1.09 1.12
4.23 3.74 3.18 3.20 3.18
7.97 9.03 9.40 9.34 9.33

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