Shares of Indian Railway Finance Corporation (IRFC) rose 4.6 percent to Rs 181 apiece on the BSE in intraday trade on Tuesday. Shares of IRFC rose after the public sector company reported strong net profits in the fourth quarter of fiscal 2023-24 (Q4FY24).
The company reported a 33.6 percent year-on-year increase in net profit to 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 increase of 1.73 per cent to Rs 6,473 crore, compared to Rs 6,193 crore a year ago.
For the financial year ended FY24, government-owned Miniratna posted a net profit of Rs 6,412 crore, up 4 per cent from Rs 6,167 crore in FY23. While in FY24, it saw a total turnover of Rs 26,655 crore, up 12 percent from Rs 23,762 crore in FY23.
IRFC also announced 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.
“The Board of Directors of Indian Railway Finance Corporation Limited has approved raising funds for the financial year 2024-25 up to Rs. 50,000 crores from both the domestic and international markets, through a prudent mix of tax-exempt bonds, taxable bonds on a private placement or public issue basis, including capital gains bonds under 54EC of the Income Tax Act, and government guaranteed bonds. said in a statement.
At 10:37 am; the company’s shares rose 2.86 percent to Rs 178.15 per share on the BSE. In comparison, the S&P BSE Sensex fell 0.28 percent. IRFC is currently trading at a multiple of 37.50 times earnings.
First print: May 21, 2024 | 10:49 am IST