IRFC Q2 FY25 Earnings Highlights: Revenue Up 2%, Profit Climbs, Shares Dip Over 3%

Indian Railway Finance Corporation (IRFC) announced its Q2 FY25 financial results via a stock exchange filing on November 4, 2024. The company reported growth in revenue and profit despite a recent dip in its stock price.

Revenue and Profit Growth

For the quarter ending September 2024 (Q2 FY25), IRFC’s revenue from operations reached ₹6,898 crore, reflecting a 2% year-over-year (YoY) increase from ₹6,761 crore in Q2 FY24. The company’s net profit also rose, reaching ₹1,612 crore—a 4.4% increase compared to ₹1,544 crore in the same quarter last year.

Half-Year Performance

In the first half of FY25 (H1 FY25), IRFC reported revenue totalling ₹13,666 crore, a slight rise from ₹13,437 crore in H1 FY24. Net profit for H1 FY25 was recorded at ₹3,192 crore, up slightly from ₹3,117.84 crore in the previous year’s same period.

Dividend Declaration

The IRFC board approved a dividend of Re 0.80 per equity share, with a record date for eligible shareholders set to be announced on November 12.

Strategic Role in Railways’ Infrastructure

IRFC plays a crucial role in supporting Indian Railways’ infrastructure growth by providing funds to cover extra-budgetary capital expenditures for projects related to rolling stock and railway infrastructure. Additionally, IRFC funds projects connected with Indian Railways’ development. In FY24, IRFC disbursed ₹16,705.20 crore for these purposes.

Stock Performance: 33% Drop from Recent High

IRFC’s shares have seen a significant decline, falling 34% over the past 3 months from a high of ₹229 per share. The stock recently dropped to a 6-month low of ₹132.80 in October due to profit-taking following a sharp rise between March 2023 and July 2024, during which the stock surged by 780%. 

On November 05, 2024, IRFC’s share price opened at ₹153.00 and touched the day low of ₹148.61 at 10:15 AM on the NSE. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.