Indian Railway Finance Corporation Ltd
IRFC

Indian Railway Finance Corporation Ltd (IRFC)

₹21.550.7%

Key Stats

₹21.3
Day's Price Range
₹21.7
₹20.9
52-Week Price Range
₹26.45
1 Month Return-4.04 %
3 Month Return-2.73 %
1 Year Return-10.84 %

Company Financials

  • Annual
Value in ₹ crore

Peer Comparsion

EPS
Rank 13
BVPS
Rank 13
Dividend Yield
Rank 9
ROE
Rank 7
13.31%
Debt To Asset
Rank 13

Company Information

Indian Railway Finance Corporation Limited was incorporated on December 12 1986 as a public limited company. Thereafter The Company received a certificate of commencement of business from the RoC on December 23 1986. The MCA through its notification dated October 8 1993 classified the Company as a Public Financial Institution under Section 4A of the Companies Act 1956 now defined in Section 272 of the Companies Act 2013. Subsequently The Company was registered with RBI under Section 45IA of the RBI Act to carry on the business of a nonbanking financial institution without accepting public deposits pursuant to a certificate of registration bearing No.14.00013 dated February 16 1998. Subsequently vide a fresh certificate of registration bearing No.14.00013 dated March 17 2008 RBI classified the Company as a nondeposit accepting asset finance nonbanking financial company. Thereafter the Company was reclassified as an NBFCNDIFC by RBI through a fresh certificate of registration bearing No. B14.00013 dated November 22 2010.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. The Company is responsible for raising the finance necessary for such activities. Over the last three decades the company has played a significant role in supporting the capacity enhancement of the Indian Railways by financing a proportion of its annual plan outlay. The Union Budget proposed a capital expenditure of Rs. 1602 billion for the Indian Railways for Fiscal 2020 which was higher than the capital expenditure revised estimate of Rs. 1388.58 billion in Fiscal 2019. The actual capital expenditure of the Indian Railways was Rs. 1334 billion in Fiscal 2019. In Fiscal 2019 the company financed Rs. 525.35 billion accounting for 39.38 of the actual capital expenditure of the Indian Railways.The Company is whollyowned by the Government of India acting through the MoR. The Company 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 45IA of the Reserve Bank of India Act 1934. 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 borrowing and a margin determined by the MOR in consultation with the company at the end of each Fiscal. Typically the weighted average cost of borrowing factors in any expenses incurred by the company with respect to any foreign currency hedging costs and/ or losses and gains if any as well as any hedging costs for interest rate fluctuations. For the second 15 year period the company charges the Indian Railways a nominal rate which is subject to revision on mutually acceptable terms. The Company also follows a leasing model for Project Assets which typically provides for lease periods of 30 years.
OrganisationIndian Railway Finance Corporation Ltd
HeadquartersNew Delhi
IndustryFinance