Indian Railways Finance Corporation Limited
Indian Railways Finance Corporation Limited is a public sector undertaking was incorporated in 1986 as the subsidiary of Indian Railways. It is the dedicated financing arm of the railways for mobilizing funds from domestic as well as overseas capital markets. The company went public in January 2021 making it the first Public owned Non-Banking Finance Company to be listed on the stock exchange. It aims to be the leading Financial Services company in the country for raising funds from the capital market at competitive cost for augmenting railway plan finances, duly ensuring that the Corporation makes optimum profits from its operations. It will have a major role to play in the coming years as the Indian Railways takes on new projects such as in the field of Bullet Train which will require a huge amount of capital.
In more than 30 years of its existence the company has played a major role in the expansion of Railways in the country. It has also been lending to various entities in the railway sector such as RailTel, Rail Vikas Nagam Limited (RVNL), Konkan Railway Corporation Ltd (KRCL) and Pipavav Railway Corporation Limited (PRCL) etc. So far it has funded 8998 locomotives, 47910 passenger coaches, 214456 wagons, which constitute around 70% rolling fleet of the railways.
As a responsible corporate citizen, IRFC contribute Rs. 64 crores towards PM CARES fund. During the year 2019-20, the Company was required to spend Rs. 50.52 crores in CSR Activities. These funds were allocated for building public toilets, healthcare, and education improvement.
The shareholding pattern of IRFC comprises of a majority 86.36 % held by the promoters, 1.44 % by FIIs, 4.23% by DIIs and 7.97% by public.
For the FY-21, the company has reported a Consolidated Total Income of Rs 15770.86 Crore up by 17.5% from the FY-20 in which Total Income was Rs 13421.09 Crore. Company has reported net profit after tax of Rs 4416.13 Crore in FY-21. The Board of Directors have recommended no final dividend.
The result of IRFC is competent.
