IRFC reports 126% jump in Q4 net income to `1,482.55 crore
Mumbai: Indian Railway Finance Corporation (IRFC) has reported a 126 per cent jump in net income to record Rs 1,482.55 crore in the March quarter, mainly due to higher interest income from record disbursals and cheaper funds.
It had clocked a net income of Rs 654.63 crore a year ago.
The New Delhi-based market borrowing arm of the Railways attributed the massive growth in the bottom line to the traditionally busy season effect when the Railways draws down the maximum funds from it.
For the full year, it has booked a profit of Rs 4,416.13 crore, up 38.34 per cent from Rs 3,192.06 crore in FY20, as its revenue from operations rose 17.5 per cent to Rs 15,770.47 crore from Rs 13,421.09 crore in FY20. The annual disbursement for IRFC grew by 46.19 per cent on YoY basis from Rs. 71,392 crore in FY 2019-20 to Rs. 1,04,369 crore for the FY 2020-21. The Assets Under Management (AUM) for FY2020-21 stands at Rs. 3,60,079 crore as against Rs. 2,66,137 crore registering a growth of 35.29 per cent on YoY basis.
The capital adequacy ratio of IRFC continues to remain strong at 415.85 per cent for FY 2020-21 as against 395.39 per cent for FY 2019-20. The Company continues to raise funds at the most competitive rates and terms both from the domestic and overseas financial markets which has helped to keep its cost of borrowing low.
Corporate Social Responsibility remains to be a focal area for IRFC as the company spent Rs.93.44 crore for FY 2020-21 as compared to Rs. 49.45 crore for FY 2019-20.
Commenting on the financial results, Amitabh Banerjee, Chairman and Managing Director, IRFC, said, "IRFC continued to show strong growth momentum both in terms of revenue and profit during the financial year driven by the massive investment outlay of Indian Railways which is on an expansion and modernization drive. There will be sustained growth in revenue and profitability going forward as a major portion of the funding requirement of Indian Railways is to be met through IRFC."
