IRFC disburses ₹32,393 cr to Indian Railways in FY23, says CMD Shelly Verma at AGM

Indian Railway Finance Corporation (IRFC) disbursed ₹32,392.63 crore to the Indian Railways in the financial year 2022-23, says Shelly Verma, Chairman and Managing Director (Additional Charge) and Director (Finance), at the company’s 36th Annual General Meeting (AGM) on Friday.

While addressing the AGM, Shelly Verma says, “IRFC reported a strong financial performance during the year under review, with all-time high revenue and profits.” The net profit for FY23 stood at ₹6,337.01 crore, up 4.06% against ₹6,089.84 crore in the last fiscal.

Verma further informed that the total revenue from operations grew by 17.70%, year-on-year, amounting to ₹23,891.28 crore against ₹20,298.27 crore in the last fiscal year. The state-owned company has declared a total dividend of ₹1,960.28 crore, which works out to 30.93% of PAT for FY23, she adds.

IRFC, the funding arm of Indian Railways, is engaged in raising financial resources for expansion and running through capital markets and other borrowings. The government currently holds 86.36% shareholding in the financing arm of the Indian Railways.

While addressing the shareholders during the virtual AGM, Verma informed that the AUM for FY23 stands at ₹4,66,938 crore, registering a year-on-year growth of 8.63%. The capital adequacy ratio of IRFC continues to remain strong at 512.02% in FY23, she added.

On September 18, 2023, IRFC informed exchanges that the union government extended its current chief managing director Shelly Verma's tenure by six months. "The extension has been provided for a further period of six-months to Ms. Shelly  Verma who holds the charge of chief managing director in additional capacity apart from the position Director of Finance. This will be in effect from October 15, 2023," the PSU company said in a regulatory filing.

For the April-June quarter of FY24, IRFC reported an 6.3% year-on-year drop in its net profit to ₹1,556.6 crore as compared to ₹1,661.6 crore in the year-ago period. Sequentially, net profit was up 17.2% from ₹1,327.7 crore in Q4FY23.

The total revenue from operations surged 18.7% YoY to ₹6,679.2 crores as against ₹5,627.4 crore in Q1FY23. Total income stood at ₹6,681.0 crore versus ₹5,627.5 crore in the same period last year.

In the past 12 months, IRFC has declared an equity dividend amounting to ₹1.50 per share.

On Friday, IRFC shares ended 0.94% higher at ₹75.13 apiece on the BSE. The stock has witnessed strong rally in the recent past after Prime Minister Narendra Modi launched a new capital expenditure (capex) programme worth ₹24,470 crores to revamp 508 railway stations.

IRFC shares surged 57% in a month, while it rallied 180% in the past six months. In the calendar year, the railway stock delivered 127% returns, whereas it zoomed more than 250% in the last one year.

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