IRFC Q2 Results: Net profit rises 4% YoY to ₹1,613 crore, revenue up 2%

Indian Railway Finance Corporation (IRFC) released its performance for the September 2024 quarter (Q2 FY25) on Monday, November 4, reporting revenue from operations of ₹6,898 crore. This reflects a 2% year-on-year (YoY) increase compared to ₹6,761 crore recorded in the same period last year.

Net profit for the reporting quarter rose to ₹1,612 crore, up from ₹1,544 crore in Q2 FY24, representing an improvement of 4.4%. Total income from operations rose to ₹6,900 crore, up from ₹6,762 crore in Q2 FY24, as per the company's earnings filing. 

For the first half of FY25 (H1 FY25), the company reported revenue of ₹13,666 crore compared to ₹13,437 crore in the same period last year. Net profit for H1 FY25 was ₹3,192 crore, reflecting a slight increase from ₹3,117.84 crore.

Additionally, the company's board approved a dividend of Re 0.80 per equity share of ₹10 each. The record date for determining eligible shareholders will be announced on November 12.

IRFC plays a strategic role in supporting the Indian Railways' Infrastructure Development Plan, serving as the primary market borrowing arm for Indian Railways to fulfil its entire extra-budgetary resource requirements for capital expenditure funding, encompassing both rolling stock and railway infrastructure projects.

In addition to financing Indian Railways, the company is mandated to support projects that are linked both backward and forward with the railways. During the fiscal year 2023-24, IRFC disbursed ₹16,705.20 crore.

Shares crash 33% from recent high

The shares of the railway public sector undertaking (PSU) have been on a downward trend over the past three months, losing 34% of their value from a recent peak of ₹229 per share.

In October, the shares fell below ₹135, reaching a six-month low of ₹132.80 per share. This decline can be attributed to profit booking after the stock experienced a significant one-way surge between March 2023 and July 2024, resulting in an impressive gain of 780%.

Meanwhile, the stock ended today's session with a drop of 3.08% at ₹153.24 apiece. 

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