IRFC shares extend slide post Q4 results, down 16% from May high

Shares of Indian Railway Finance Corporation (IRFC) on Friday extended their recent slide after the Miniratna firm reported a double digit drop in the March quarter profit growth. The stock, which dropped 5.44 per cent on Thursday, dropped another 2.46 per cent per cent in Friday's trade to hit a low of Rs 31.21 apiece on BSE. With this, the scrip ahs fallen 16.48 per cent from a 52-wek high of Rs 37.37 hit on May 4.

IRFC shares fell as the PSU reported a 11 per cent year-on-year (YoY) decline in net profit at Rs 1,327.70 crore for the March quarter compared with Rs 1,492.50 crore in the corresponding quarter last year.

IRFC said its interest income for the quarter rose to Rs 1,998.50 crore from Rs 1,913 crore YoY while it said its lease income jumped to Rs 4,237 crore from Rs 4,018.10 crore YoY. Total revenue for the quarter stood at Rs 6236 crore from Rs 5,931 crore YoY, the company said in a BSE filing.

A final dividend of Re 0.70 announced by the company could not lift its shares. The company had announced an interim dividend of Re 0.80 in the past, taking total dividend for FY23 at Rs 1.50. The IRFC stock is up 49 per cent in the last one year.

IRFC on Thursday said its board approved the authorisation of market borrowing for FY24. Under the proposed borrowing programme at Rs 50,000 crore will be raised for different maturities, through different instruments, depending upon the actual requirement of funds, asset-liability position and prevailing market conditions, IRFC said.

The company board designated Sunil Kumar Goel, Group General Manager (Finance) as the Chief Financial Officer (CFO) and key managerial personnel (KMP) of the company with effect from May 25. He would replace Ms. Shelly Verma who is chairman & Managing Director (Additional Charge), CEO and Director Finance of the company.

Meanwhile, the company board gave its consent to shift the registered office of the company from room Nos.1316-1349, 3rd Floor, Hotel The Ashok, Diplomatic Enclave, 50-8, Chanakyapuri, New Delhi-110021 to UG floor, East Tower, NBCC Place, New Delhi-110003 (new) with effect from July 1 within the local limits of city.

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