IRFC shares zoom 5% amid strong Q4 results, Rs 50,000 cr fund raise plan

Shares of Indian Railway Finance Corporation (IRFC) rose 4.6 per cent at Rs 181 a piece on the BSE in Tuesday’s intraday trade. The stock prices of IRFC zoomed after the public sector undertaking reported strong net profits in the fourth quarter of financial year 2023-24 (Q4FY24).

The company reported a 33.6 per cent year-on-year increase in net profit reaching Rs 1,717 crore compared to Rs 1,285 crore in the corresponding period last year. Total revenue from operations for the March quarter showed a modest rise of 1.73 per cent to Rs 6,473 crore from Rs 6,193 crore a year ago. 

For the fiscal year ending FY24, the Miniratna public sector company achieved a net profit of Rs 6,412 crore, rising 4 per cent compared to Rs 6,167 crore in FY23. While it saw a total revenues of Rs 26,655 crore in FY24, up 12 per cent as against Rs 23,762 crore in FY23. 

IRFC also declared a final dividend of Rs 0.70 per equity share of Rs 10 for the financial year 2023-24. 

Furthermore, the board approved plans to raise funds for the financial year  2024-25, with a target of up to Rs 50,000 crores from both domestic and international markets.

“Board of Directors of Indian Railway Finance Corporation Limited approved raising of resources for the financial year 2024-25 up to Rs. 50,000 crores from both domestic and international market, through a prudent mix of Tax-Free Bonds, Taxable Bonds on private placement or public issue basis, including Capital Gain Bonds u/s 54EC of Income Tax Act, and Government Guaranteed Bonds,” the company said in a statement. 

At 10:37 AM; the stock of the company was up 2.86 per cent at Rs 178.15 per share on the BSE. In comparison the S&P BSE Sensex fell 0.28 per cent. IRFC is presently trading at a price to earnings multiple of 37.50 times.