IRFC Q3 PAT rises 2% YoY as rising finance costs impact profitability

Indian Railway Finance Corporation (IRFC) reported 2% rise in net profit to Rs 1633.45 crore on a 22% increase in total income to Rs 6222.03 crore in Q3 FY23 over Q3 FY22.

Total expenses during the quarter amounted to Rs 4588.58 crore, up 31% YoY. Finance costs in the third quarter increased by 30% YoY and accounted for over 99% of total expenses.

Debt to equity ration was at 9.13 times as on 31 December 2022 as against 9.34 times as on 31 December 2021. Capital-to-risk-weighted assets ration stood at 482.11%.

While the company's operating profit margin declined by 505 bps to 26.20%, net profit margin fell by 502 bps to 26.25% in the third quarter as compared witht the same period last year.

IRFC is a dedicated financing arm of the Indian Railways for mobilising funds from domestic as well as overseas markets. The Government of India held 86.36% stake in the company as on 30 December 2022.

The scrip shed 0.50% to currently trade at Rs 29.25 on the BSE.

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