Indian Railway Finance Corporation Ltd

₹ 31.2 -1.27%
03 Feb - 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 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.

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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 Jun 2022 Sep 2022
3,641 3,206 3,669 3,714 3,932 4,455 4,582 4,690 5,096 5,932 5,627 5,810
8 51 37 19 7 51 3 28 9 82 23 34
Operating Profit 3,633 3,154 3,633 3,695 3,925 4,404 4,578 4,662 5,087 5,849 5,605 5,776
OPM % 100% 98% 99% 100% 100% 99% 100% 99% 100% 99% 100% 99%
0 0 0 0 0 0 0 0 1 1 0 1
Interest 2,726 2,500 2,741 2,700 2,878 2,918 3,073 3,157 3,491 4,353 3,940 4,059
Depreciation 0 0 0 0 0 4 3 3 3 5 4 4
Profit before tax 907 655 892 995 1,047 1,483 1,502 1,501 1,594 1,493 1,662 1,714
Tax % 0% 0% 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 1,662 1,714
EPS in Rs 0.97 0.55 0.75 0.84 0.88 1.13 1.15 1.15 1.22 1.14 1.27 1.31
Raw PDF

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%

Shareholding Pattern

Numbers in percentages

Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022
86.36 86.36 86.36 86.36 86.36 86.36 86.36 86.36
1.44 0.86 1.06 1.09 1.12 1.02 1.05 1.01
4.23 3.74 3.18 3.20 3.18 3.25 3.39 2.97
7.97 9.03 9.40 9.34 9.33 9.36 9.19 9.66

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

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