IRFC Shares in Focus; Q3 FY25 Profit Rises 2%, Revenue Marginally Up

Indian Railway Finance Corporation (IRFC) reported a 2% YoY increase in Q3 FY25 net profit to ₹1,630.66 crore. Revenue rose 0.4% YoY to ₹6,763.43 crore. Expenses fell 3% QoQ, while the EPS rose to ₹1.25.

Q3 FY25 Financial Highlights

Indian Railway Finance Corporation (IRFC) reported a nearly 2% increase in its net profit for the third quarter of FY25, reaching ₹1,630.66 crore, compared to ₹1,598.93 crore in the same quarter last year.

Revenue from operations stood at ₹6,763.43 crore, showing a slight 0.4% increase from ₹6,736.57 crore in the previous year’s quarter.

The company’s total expenses amounted to ₹5,135.73 crore, down 3% from ₹5,287.55 crore in Q2 FY25. In the same quarter last year, expenses were ₹5,141.09 crore.

Earnings per share (EPS) for the third quarter of FY25 were ₹1.25, up from ₹1.22 per share in Q3 FY24.

Recent Business Developments

On October 8, 2024, the IRFC board approved financing for 20 BOBR rakes under the General Purpose Wagon Investment Scheme (GPWIS) of Indian Railways for up to ₹700 crore on a finance lease basis to NTPC.

As part of this approval, IRFC signed a lease agreement with NTPC Ltd for the first phase, involving 8 BOBR rakes worth approximately ₹250 crore. This financing deal underscores IRFC’s commitment to providing innovative financing solutions for infrastructure development.

Meanwhile, in a recent press release, IRFC announced that it has emerged as the lowest bidder (L1) for financing ₹3,167 crore for the development of the Banhardih Coal Block in Latehar District, Jharkhand. The project is being executed by Patratu Vidyut Utpadan Nigam Limited (PVUNL), a joint venture between NTPC Limited (holding 74% equity) and Jharkhand Bijli Vitran Nigam Limited (26% equity).

The Banhardih Coal Block, allocated to PVUNL as a captive coal source, will supply coal to the project site via Indian Railways. This proposal is subject to further due diligence, approval from IRFC’s Board of Directors, and finalisation of the terms with PVUNL.

Share Price Performance

Indian Railway Finance Corporation’s share price traded 1.88% lower at ₹143.94 at 10:00 AM on the NSE, after opening at ₹146.60, down slightly from the previous close of ₹146.70. The stock ended its 5-session gaining streak today.

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