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Indian Railway Finance Corporation Ltd Stock Analysis

Large Cap
Evaluated by 101 users | BSE: 543257 | NSE: IRFC |
Finance Term Lending

The company was incorporated as Indian Railway Finance Corporation Limited on December 12, 1986, as a public limited company under the Companies Act, 1956, pursuant to a certificate of incorporation issued by the Registrar of Companies, National Capital Territory of...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Operating Income (Rs. Cr.)3,8394,6425,5506,1876,9397,5069,04711,01911,13413,838
Y-o-Y Gr. Rt.-20.9%19.6%11.5%12.2%8.2%20.5%21.8%1%24.3%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
302.87228.73221.75209.04211.58187.51.433.082.43.11
Y-o-Y Gr. Rt.--24.5%-3.1%-5.7%1.2%-11.4%-99.2%115.4%-22.1%29.6%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
2,675.382,450.32,463.562,186.782,270.982,104.3718.420.7826.6826.06
Y-o-Y Gr. Rt.--8.4%0.5%-11.2%3.9%-7.3%-99.1%12.9%28.4%-2.3%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1: Not Good
Net Profit/Total Funds (%)1.110.90.790.910.880.870.781.381.221.52
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Indian Railway Finance Corporation Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income15.3%14.8%15.2%24.3%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
-39.9%-57%29.6%29.6%
Book Value per Share
-40.2%-59.1%12.3%-2.3%
Share Price - - - -
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Asset Quality Ratio
To view Asset Quality Ratio Colour Rating Guide click here
Asset Quality Ratio: Colour Rating Guide
  • <0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1 : Not Good
Net NPA to Net Advances (%)0000000000
Capitalization Ratio
To view Capitalization Ratio Colour Rating Guide click here
Capitalization Ratio: Colour Rating Guide
  • >17% : Very Good
  • 15%-17% : Somewhat Good
  • <15% : Not Good
Capital Adequacy Ratio (%)0000000000
Margins
Net Profit Margin (%) 12.6410.369.411.3210.9311.3110.3218.2220.2526.68
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 12.6210.199.5310.689.89.618.6715.711.6813.19
Entity Percentage Holding
Institutions 100.00%
Pledged *0.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

Data is not available for this company.

Data is not available for this company

The company was incorporated as Indian Railway Finance Corporation Limited on December 12, 1986, as a public limited company under the Companies Act, 1956, pursuant to a certificate of incorporation issued by the Registrar of Companies, National Capital Territory of Delhi & Haryana (RoC). Indian Railway Finance Corporation is wholly-owned by the Government of India acting through the MoR. It is registered with the Reserve Bank of India as a NBFC (Systematically

The company was incorporated as Indian Railway Finance Corporation Limited on December 12, 1986, as a public limited company under the Companies Act, 1956, pursuant to a certificate of incorporation issued by the Registrar of Companies, National Capital Territory of Delhi & Haryana (RoC). Indian Railway Finance Corporation is wholly-owned by the Government of India acting through the MoR. It is registered with the Reserve Bank of India as a NBFC (Systematically Important) and is classified under the category of an ‘Infrastructure Finance Company’ under Section 45-IA of the Reserve Bank of India Act, 1934. It was notified as a ‘Public Financial Institution’ under the Companies Act, 1956 through a notification dated October 8, 1993 issued by the Ministry of Corporate Affairs.

The company is responsible for raising the finance necessary for such activities. Over the last three decades, it has played a significant role in supporting the capacity enhancement of the Indian Railways by financing a proportion of its annual plan outlay. The company follows a financial leasing model for financing the Rolling Stock Assets. The period of lease with respect to Rolling Stock Assets is typically 30 years comprising a primary period of 15 years followed by a secondary period of 15 years, unless otherwise revised by mutual consent. In terms of the leasing arrangements, the principal amount pertaining to the leased assets is effectively payable during the primary 15 years lease period, along with the weighted average cost of incremental borrowing and a margin determined by the MOR in consultation with it at the end of each Fiscal.

Business area of the company

The company is the dedicated market borrowing arm of the Indian Railways. Its primary business is financing the acquisition of rolling stock assets, which includes both powered and unpowered vehicles, for example locomotives, coaches, wagons, trucks, flats, electric multiple units, containers, cranes, trollies of all kinds and other items of rolling stock components as enumerated in the Standard Lease Agreement (collectively, “Rolling Stock Assets), leasing of railway infrastructure assets and national projects of the Government of India (collectively, Project Assets) and lending to other entities under the Ministry of Railways, Government of India (MoR). The MoR is responsible for the procurement of Rolling Stock Assets and for the improvement, expansion and maintenance of Project Assets.

Awards and Accreditations

  • 2018: Awarded “Mini Ratna Category I” status.
  • 2019: Awarded “Best Growth Performance-Financial Services” and “Best Miniratna in Services” at the
    PSU Awards 2019, organised by dun & bradstree.

History and Milestones

  • 1988: Commencement of fund raising from the domestic capital market.
  • 1988: Financing the procurement of Rolling Stock Assets by Indian Railways.
  • 1988: Raised loan from Export Import Bank of Japan on behalf of the Ministry of Finance.
  • 1991: Company declared dividend to the GoI.
  • 1993: Declared as a Public Financial Institution under Section 4A of the Companies Act, 1956.
  • 1996: Issue of floating rate notes of USD 70 million in the offshore market.
  • 1996: Public issue of deep discount bonds.
  • 1998: Registered as a NBFC.
  • 1998: Raised term loans from Corporation Bank and Indian Overseas Bank for a tenure of 15 years.
  • 1998: Issue of secured, redeemable, non-cumulative, taxable bonds to Life Insurance Corporation of India for tenure of 15 years.
  • 1999: Issue of secured, redeemable, non-cumulative, taxable bonds in Separately Transferable Redeemable
    Principal Parts (STRPP).
  • 2003: Raised USD 75 million through syndicated foreign currency loan.
  • 2006: Issue of floating rate bonds in the domestic capital market.
  • 2008: Categorized as NBFC-ND-AFC by RBI.
  • 2010: Issuance of secured, redeemable, non-cumulative, taxable bonds for a tenure of 25 years.
  • 2010: Categorized as NBFC-IFC by RBI.
  • 2011: Issue of Euro-Dollar bonds (Regulation S) in the offshore market.
  • 2011: Raised foreign currency term loan from American Family Life Assurance Company of Columbus for a tenure of 15 years.
  • 2012: Raised funds through a public issue of tax - free bonds at a differential coupon rate.
  • 2012: The company entered into a memorandum of understanding dated July 27, 2012 with MoR with respect to the financing of railway infrastructure projects by the company. The MoU sets out the understanding between the parties as regards the leasing by the company to the MoR of the infrastructure assets like railway tracks etc. owned by the company.
  • 2016: Mobilization of Rs 95,000 million through tax free bonds.
  • 2016: Forayed into funding railway projects through institutional finance from LIC.
  • 2018: Central Board of Direct Taxes vide notification dated August 8, 2017 notified that the any bond redeemable after three years issued by the company will be classified as “long-term specified asset” under Section 54EC of the Income-tax Act, 1961.
  • 2018: The Bank of Tokyo-Mitsubishi UFJ Ltd., Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corporation (Singapore branch) sanctioned syndicated loan to the company amounting to JPY equivalent of USD 250 million for a period of 10 years.
  • 2018: Unsecured fixed rate Regulation S green bonds issued by the company amounting to USD 500 million for a period of 10 years.
  • 2019: Set up Euro Medium Term Note (EMTN) Programme for USD 2 billion.
  • 2019: Issuance of Reg S Bonds of USD 500 Million in the EMTN format.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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