IRFC Q2 FY 2024-25 Financial Results Analysis
IRFC Q2 FY 2024-25 Financial Results Analysis
Indian Railway Finance Corporation (IRFC) has released its Q2 FY 2024-25 financial results. Here's a detailed analysis of the company's performance, highlighting key metrics and trends.
Financial Summary Table
| Particulars | Q2 FY 2024-25 | Q1 FY 2024-25 | Q2 FY 2023-24 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Revenue from Operations (₹ Cr) | 6,763.43 | 6,899.34 | 6,736.57 | +0.40% | -1.97% |
| Net Profit Before Tax (₹ Cr) | 1,630.66 | 1,612.65 | 1,598.93 | +1.98% | +1.12% |
| Net Profit After Tax (₹ Cr) | 1,630.66 | 1,612.65 | 1,598.93 | +1.98% | +1.12% |
| Total Comprehensive Income (₹ Cr) | 1,627.62 | 1,602.59 | 1,605.56 | +1.37% | +1.56% |
| Debt-Equity Ratio | 7.81 | 7.83 | 8.69 | Improved | Improved |
| Earnings Per Share (Basic & Diluted, ₹) | 1.25 | 1.23 | 1.22 | +2.46% | +1.63% |
| Net Worth (₹ Cr) | 52,046.26 | 51,464.12 | 47,443.29 | +9.71% | +1.13% |
| Finance Costs (₹ Cr) | 5,095.07 | 5,248.74 | 5,104.29 | -0.18% | -2.93% |
| Impairment on Financial Instruments (₹ Cr) | 0.46 | 0.47 | 0.51 | -9.80% | -2.13% |
Key Highlights
Revenue Trends:
The company reported a revenue of ₹6,763.43 crores, marking a slight increase of 0.40% YoY.
However, revenue declined by 1.97% QoQ, reflecting potential seasonal or project-based fluctuations.
Profitability:
Net profit before and after tax showed stable growth of approximately 2% YoY, reaching ₹1,630.66 crores.
Total comprehensive income also saw consistent growth both YoY (+1.37%) and QoQ (+1.56%).
Debt Management:
The debt-equity ratio improved to 7.81, down from 8.69 in the previous year. This reflects better financial leverage management.
Cost Control:
Finance costs declined both YoY (-0.18%) and QoQ (-2.93%), indicating improved cost efficiency.
Impairment expenses also decreased, contributing positively to overall profitability.
Earnings Per Share (EPS):
EPS increased to ₹1.25, showcasing value creation for shareholders.
Observations
Quarterly Revenue Decline: The decline in revenue from the previous quarter could indicate challenges such as lower lease income or reduced interest income. Monitoring upcoming quarters will help assess whether this is a recurring trend.
Expense Optimization: Effective management of finance costs and impairment expenses has been a significant contributor to the company’s profitability.
Strong Net Worth Growth: The net worth increased by 9.71% YoY, reflecting robust equity management and consistent financial performance.
Conclusion
IRFC’s Q2 FY 2024-25 results demonstrate its ability to maintain stable profitability while improving cost efficiency and debt management. Although the slight dip in revenue QoQ is a point of concern, the overall financial health remains solid. With consistent EPS growth and improved debt-equity ratios, the company continues to deliver value to its stakeholders.
Disclaimer: This analysis is based on publicly available financial data and does not constitute investment advice. Investors are advised to conduct their due diligence or consult a financial advisor before making investment decisions.
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