Indian Railway Finance Corp.: History, Latest Updates, Milestones, Subsidiaries and Share Price
INTRODUCTION
IRFC, established on December 12, 1986, serves as the financial arm of the Indian Railways project. As a Schedule ‘A’ Public Sector Undertaking under the Ministry of Railways, Government of India, it plays a crucial role in meeting the ‘Extra Budgetary Resources’ (EBR) needs of Indian Railways through market borrowing. Over the years, IRFC has financed over Rs. 4 lakh crore, facilitating the procurement of essential rolling stock for Indian Railways. Additionally, it has contributed to funding railway schemes, infrastructure projects, and capacities, ensuring the sustainable expansion of the railway sector.
Indian Railway Finance Corp. moves in 2024:
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Indian Railway Finance Corporation (IRFC) announced its financial results for the quarter that ended March 31, 2024, The company posted a 33.6% year-on-year (YoY) rise in its net profit to Rs. 1,717 crores compared to Rs. 1,285 crores in the same period a year ago, likely influencing the IRFC share price positively.
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Total revenue from operations for the March quarter rose 1.73% to Rs. 6,473 crore from Rs. 6,193 crore last year, potentially affecting the IRFC share price.
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The Board of Directors endorsed raising funds of up to Rs.50,000 crore for the financial year 2024-25 from both domestic and international markets, a decision that may impact the IRFC share price.
Evolution of the Indian Railway Finance Corporation: From Past to Present:
Past:
Established on December 12, 1986, Indian Railway Finance Corporation Limited (IRFC) emerged as the financial backbone of Indian Railways. Initially capitalized at Rs. 2,000 million, IRFC's pivotal role in railway financing quickly expanded, gaining recognition as a public financial institution by the Ministry of Corporate Affairs in 1993. By 1998, it had become a registered Non-Banking Financial Company (NBFC) with the Reserve Bank of India. Over the years, IRFC has played a vital role in acquiring rolling stock assets for Indian Railways, contributing significantly to its development and evolution.
Present:
Today, IRFC is a leading infrastructure financier, listed on the NSE and BSE since January 29, 2021. With the President of India as its promoter, IRFC is a key financial arm of Indian Railways. Its evolution from a public limited company to a recognized NBFC highlights its crucial role in national infrastructure. Adhering to prudential norms, IRFC continues to finance railway projects, supporting the sustainable development of India's transportation infrastructure.
|
Name |
Indian Railway Finance Corporation |
|
Founded year |
1986 |
|
Key People |
Uma Ranade (Managing Director) |
|
Headquarters |
New Delhi, India |
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Sector |
Financial services |
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Major subsidiaries |
Power Finance Corp, Ircon International, Rail Vikas Nigam |
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Nse code |
IRFC |
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Bse code |
543257 |
Timeline of Indian Railway Finance Corporation:
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Date |
Event |
|
12-Dec-86 |
IRFC was incorporated by the Ministry of Railways. |
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23-Dec-86 |
IRFC obtained the certificate of commencement of business. |
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1987-88 |
IRFC began its market borrowing operations. |
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1989-90 |
Authorized capital increased to Rs. 5,000 million; paid-up share capital increased to Rs. 2,320 million. |
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2007-08 |
Authorized capital increased to Rs. 10,000 million; paid-up share capital increased to Rs. 5,000 million. |
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2008-09 |
Paid-up share capital increased to Rs. 8,000 million. |
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2009-10 |
Authorized capital increased to Rs. 20,000 million; paid-up share capital increased to Rs. 10,910 million. |
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2010-11 |
Paid-up share capital increased to Rs. 16,020 million. |
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2011-12 |
Authorized capital increased to Rs. 50,000 million; paid-up share capital increased to Rs. 21,020 million. |
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2012-13 |
Paid-up share capital increased to Rs. 23,520 million. |
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2013-14 |
Paid-up share capital increased to Rs. 33,520 million. |
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2014-15 |
Paid-up share capital increased to Rs. 35,839.60 million. |
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2015-16 |
Authorized capital increased to Rs. 150,000 million; paid-up share capital increased to Rs. 45,264.60 million. |
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2016-17 |
Paid-up share capital increased to Rs. 65,264.60 million. |
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2018-19 |
Paid-up share capital increased to Rs. 93,804.60 million. |
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2019-20 |
Paid-up share capital increased to Rs. 118,804.60 million. |
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2020-21 |
Authorized capital increased to Rs. 250,000 million; paid-up share capital increased to Rs. 130,685.10 million. |
|
18-Jan-21 |
IRFC launched its initial public offering (IPO). |
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29-Jan-21 |
IRFC was listed on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE). |
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4-Mar-21 |
IRFC's registered office was moved to Room Nos. 1316 – 1349, 3rd Floor, Hotel The Ashok, Diplomatic Enclave, 50-B, Chanakyapuri, New Delhi, 110021. |
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31-Mar-22 |
Balance sheet size increased to Rs. 44,99,802.24 million (as per IND-AS). |
Inside the Indian Railway Finance Corporation:
Indian Railway Finance Corporation
Corporate actions: Indian Railway Finance Corporation Ltd. has declared six dividends since February 17, 2021. In the past 12 months, it has declared an equity dividend of Rs. 1.50 per share. With the prevailing IRFC share price at Rs. 177.80, this equates to a dividend yield of 0.84%.
Main News: On May 21, 2024, Indian Railway Finance Corporation (IRFC) reported its financial results for the fourth quarter (Q4) and the fiscal year ending on March 31, 2024. The company achieved a significant increase in its net profit for Q4, with a rise of 33.62%, amounting to Rs 1,717.32 crore, compared to Rs 1,285.24 crore in the same quarter of the previous year. Additionally, IRFC's total income for Q4FY24 grew by 3.98%, reaching Rs 6,477.99 crore, up from Rs 6,230.28 crore in the corresponding quarter of the previous year.
For the entire fiscal year ending March 31, 2024, IRFC reported a 3.97% increase in net profit, totaling Rs 6,412.10 crore, compared to Rs 6,167.16 crore in the previous year. The company's total income for the year saw a substantial growth of 12.18%, rising to Rs 26,655.92 crore, compared to Rs 23,762.77 crore for the fiscal year ending March 31, 2023.
Current IRFC Share Price NSE
|
COMPANY NAME |
SECTOR |
SHARE PRICE LINK |
|
Indian Railway Finance Corporation: |
Financial services |
Achievements and Milestones:
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Ranked among the top ten central Public Sector Undertakings by the Department of Public Enterprises for four consecutive years (2001-02, 2002-03, 2003-04, and 2004-05).
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Earned profits every year since inception and paid a dividend of Rs. 66,191 million as of March 31, 2022.
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Received high ratings from CRISIL, ICRA, CARE, Standard & Poor’s, Moody’s, Fitch Ratings, and Japanese Credit Rating Agency Limited.
CONCLUSION
Thus, it is evident that the Indian Railway Finance Corporation Ltd. (IRFC) has played a huge role in the development of Indian Railway Finance since it was incorporated on December 12, 1986. Being the financial wing of the Indian Railways, IRFC has helped to finance part of rolling stock as well as infrastructure development and this has been profitable and has paid dividends. With high credit ratings and financial credibility, IRFC has had a good performance, with increased net profit and total income in the fiscal year ending March 31, 2024. This might have led to an increase in the IRFC share price due to the positive financial performance. In the future, will continueinues to be pivotal to the financing of sustainable railway development and modernization in India.
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Frequently Asked Questions:
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What correlation does IRFC share price have with the debt to equity ratio?
The IRFC's debt to equity ratio of 847. 42% over the last five years, in contrast to the industry average of 738. 41%, may affect investor perception and, in extension, IRFC Share Price.
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I am looking for the most updated information on the Indian Railway Finance Share Price.
Check out the Indian Railway Finance Corporation Ltd share price and real-time updates on Enrich Money's stock analysis page here.
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What is the highest Indian Railway Finance Corporation stock price within the past 52 weeks?
52 Week’s high of Indian Railway Finance Corporation’s stock price is Rs. 37.40, and IRFC share price 52 week’s low is Rs. 19.30
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Does revenue growth rate affect the IRFC share price?
IRFC's revenue has demonstrated a yearly growth rate of 20.89% over the last 5 years, outperforming the industry average of 10.83%. This robust performance could positively influence IRFC share price dynamics.
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Is the increase in market share reflected in IRFC share price?
Over the past 5 years, IRFC has witnessed an increase in market share from 8.73% to 13.42%. Such growth may enhance investor confidence and potentially impact IRFC share price.
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