IRFC Q2 Results: Net profit increases 4.4% YoY, revenue rises by 2% to ₹6,898 crore

Indian Railway Finance Corporation (IRFC), a public sector undertaking (PSU) under the Ministry of Railways and the financing arm of the Indian railways, reported a 4.4% year-on-year (YoY) growth in net profit, which stood at ₹1,612 crore for Q2 FY25, up from ₹1,544 crore in Q2 FY24.

The company also posted a 2% YoY rise in revenue from operations, which increased to ₹6,898 crore in Q2 FY25 from ₹6,761 crore in Q2 FY24, according to the company’s filings.

Total income from operations for the quarter was ₹6,900 crore, up from ₹6,762 crore in the same period last fiscal.

In the first half of FY25 (H1 FY25), the company reported revenue of ₹13,666 crore, up from ₹13,437 crore during the same period last year. Net profit for H1 FY25 reached ₹3,192 crore, showing a slight increase from ₹3,117.84 crore, reported Live Mint.

The company's board has also approved a dividend of Re 0.80 for each equity share of ₹10. The record date to determine eligible shareholders will be announced on November 12.

Significance of IRFC

IRFC is crucial in advancing the Infrastructure Development Plan of the Indian Railways, acting as its primary market borrowing entity to meet all extra-budgetary capital expenditure needs, which include both rolling stock and railway infrastructure projects, the Live Mint report said.

Additionally, the company also supports projects that are both backward and forward-linked to the railways. In the fiscal year 2023-24, IRFC disbursed ₹16,705.20 crore, the report added.

IRFC shares

Shares of IRFC have been on a decline over the past three months, dropping 34% from a recent high of ₹229 per share. In October, the stock fell below ₹135, hitting a six-month low of ₹132.80 per share. This was majorly due to profit booking following the significant rally that lasted between March 2023 and July 2024, during which the stock surged by 780%, the report noted.

The stock closed down 3.08% at ₹153.24 on NSE.