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PRIVATE & CONFIDENTIAL Indian RailwayFinance Corporation Limited Performance Highlights For Nine months ended 31st December 2024 20.01.2025
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PRIVATE & CONFIDENTIAL Snapshot of the Company ◼ IRFC is registered with RBI as a systemically important NBFC- ND-IFC, Majorly owned by the GoI acting through Ministry of Railways (MoR) ◼ It is the dedicated market borrowing arm for the Indian Railways ◼ Primary business: financing the acquisition of rolling stock assets; leasing of railway infrastructure assets and national projects of the Government of India and lending to other entities under the MoR All numbers are as on 31st December, 2024 Net Gearing Ratio (Upto Q3 FY 25) 7.81x CRAR % (Upto Q3 FY 25) 719.85 % Total Debt (Upto Q3 FY 25) INR 4,06,523.94 Cr NIM (Upto Q3 FY 25) 1.40% Ratings CRISIL AAA | CRISIL A1+ ICRA AAA | ICRA A1+ CARE AAA | CARE A1+ RoE / RoA (Upto Q3 FY 25) AUM (Upto Q3 FY 25) INR 4,61,251.34 Cr GNPA Tax Liability NIL Net worth (Upto Q3 FY 25) INR 52,046.26 Cr 12.92%/ 1.33% NIL Company Overview AUM Break-Up (Upto Q3 FY 25) Minimal credit risk : 99.03% of AUM is exposure to MoR 2 Annualized Lease Receivables R/S Asset, 33.22% Lease Receivables Project Assets, 19.84% Advance against Railway Infrastructure Assets to be leased , 45.97% Loan to RVNL , 0.97%
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KeyStrengths PRIVATE& CONFIDENTIAL ◼ IRFC borrows on a long-term basis to align with the long-term tenure of the assets financed ◼ MoR is required to provide for any shortfall in funding under the Standard Lease Agreement ◼ Exempted from the RBI’s asset classification norms, provisioning norms, exposure norms to the extent of direct exposure on MoR and is not required to pay ‘minimum alternate tax’ with effect from Fiscal 2020 under section 115BAA of Income Tax Act ◼ Dedicated market borrowing arm for the Indian Railways (IR) ◼ AUM as on 31st December 2024 stands at INR 4,61,251.34 Crore ◼ Strategic relationship with the MoR enables us to maintain a low risk profile ◼ Cost-Plus Standard Lease Agreements with MoR ◼ Consistent spreads on Rolling Stock and Project Assets over last five years ◼ Highest credit rating for an Indian Issuer from ICRA, CRISIL & CARE ◼ Diversified funding sources of various maturities & currencies ◼ Competitive cost of Borrowing to keep finance cost under check ◼ Profit upto Q3 FY 25 stands at Rs. 4,820.13 Crore ◼ Revenue from operations grew by 1.27% as compared to the corresponding previous Q3 FY 24. ◼ Low overheads, administrative costs and high operational efficiency ◼ Healthy return ratios – RoA at 1.33% and RoE at 12.92% for 9M ended FY 2024-25 (Annualised) Consistent financial performance 5 Strong Asset-Liability Management 4 CompetitiveCost of Borrowings 3 Strategic role in growth of Indian Railways 1 Enjoys Regulatory Exemptions 6 Low risk, Cost –Plus business model 2 NIL NIL 18.37% AUM CAGR (FY19 – Q3 FY 25) GNPA ( Upto Q3 FY 25) Long term Ratings AAA Tax Liability INR 52,046.26 Cr Net Worth (Upto Q3 FY 25) NIL 3 Cumulative Gap over 5 yrs
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Strategicrole in financing growth of Indian Railways PRIVATE& CONFIDENTIAL AUM Break-Up (Upto Q3 FY 25)Assets Under Management (All Figures in INR crore) Disbursements Minimal credit risk : 99.03% of AUM is exposure to MoR 4 * MoR has not assigned target for the FY 2024-25. 155499.65 203047.66 270505.73 368007.20 429204.16 466148.28 464641.28 465230.19 461251.34 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Q3 FY 24 Q3 FY 25 Lease Receivables R/S Asset, 33.22% Lease Receivables Project Assets, 19.84% Advance against Railway Infrastructur e Assets to be leased , 45.97% Loan to RVNL , 0.97% 36722.25 52531.84 71392.07 104369.00 59899.00 32337.77 Nil Nil Nil FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Q3 FY 24 Q3 FY 25
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◼ **At par with India’s sovereign ratings; Particulars (31st Dec, 2024) Rating Outlook Domestic: Long term rating CRISIL CRISIL AAA Stable ICRA ICRA AAA Stable CARE CARE AAA Stable Short term rating CRISIL CRISIL A1+ – ICRA ICRA A1+ – CARE CARE A1+ – International** Moody’s Baa3 Stable Standard and Poor’s BBB- Stable Fitch BBB- Stable Japanese Credit Rating Agency BBB+ Stable Borrowing Mix as on 31st Dec, 2024 Diversified sources of funding based on strong credit ratings PRIVATE& CONFIDENTIAL 5 Borrowing Mix as on 31st Dec, 2023 53.55% 24.23% 16.14% 4.30% 1.77% Bonds (Including 54EC Bonds) LTL ECB NSSF STL (including CP) 48.02% 29.63% 17.01% 4.25% 1.10% Bonds (Including 54EC Bonds) LTL ECB NSSF STL (including CP)
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Consistent Financial Performance PRIVATE& CONFIDENTIAL Negligible Operating Expenses Net Interest Income & PAT All figures are in INR Crore, unless specified otherwise 7 All Figures in INR crore 2,553.80 2,781.58 3,224.53 4,514.61 6,205.38 6,203.37 6,428.85 4689.14 4858.50 2,001.46 2,139.93 3,192.10 4,416.13 6,089.84 6,167.16 6,412.10 4694.78 4,820.13 F Y 1 8 F Y 1 9 F Y 2 0 F Y 2 1 F Y 2 2 F Y 2 3 F Y 2 4 U P T O Q 3 F Y 2 4 U P T O Q 3 F Y 2 5 Net Interest Income PAT 14.0 13.0 14.0 17.0 27.0 27.6 24.5 18.9 18.3 0.15% 0.11% 0.10% 0.11% 0.13% 0.12% 0.09% 0.09% 0.09% 0.00% 0.02% 0.04% 0.06% 0.08% 0.10% 0.12% 0.14% 0.16% 0.0 5.0 10.0 15.0 20.0 25.0 30.0 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Upto Q3 FY 24 Upto Q3 FY 25 Operating Exp Operating Exp as a % of Total Income
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Consistent Financial Performance PRIVATE& CONFIDENTIAL 7 ReturnRatios CRAR and Net Gearing Ratio Net Interest Margin 1.38% 1.16% 1.32% 1.35% 1.47% 1.31% 1.31% 1.29% 1.33% 12.32% 9.47% 11.57% 13.34% 15.97% 14.50% 13.66% 13.22% 12.92% FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Upto Q3 FY 24 Upto Q3 FY 25 RoA RoE 1.83% 1.57% 1.38% 1.45% 1.56% 1.39% 1.38% 1.34% 1.40% 0.00% 0.50% 1.00% 1.50% 2.00% FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Upto Q3 FY 24 Upto Q3 FY 25 321.00% 347.00% 395.00% 420.00% 433.15% 484.88% 616.15% 614.13% 719.85% 6.60 7.00 7.70 9.00 9.62 9.38 8.38 8.69 7.81 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Upto Q3 FY 24 Upto Q3 FY 25CRAR Net Gearing Ratio
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Key Ratios- 9M ended FY2024-25 PRIVATE& CONFIDENTIAL 8 Particulars 9M ended FY 2024-25 Net Interest Margin 1.40% (Annualized) Return on Equity 12.92% (Annualized) Net Gearing Ratio 7.81x CRAR 719.85% EPS 4.92(Annualized) Total Dividend Paid for the FY 2023-24 is Rs. 1.50 per share: ▪ Final Dividend Rs. 0.70 per share ▪ Interim dividend Rs. 0.80 per share Interim Dividend Paid for FY 2024-25 Rs. 0.80 per share
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Snapshot of Key Financials 9 Particulars 9M Ended 31st December 2024 9M Ended 31st December 2023 Growth in % Y ear Ended 31st March 2024 Revenuefrom Operations 20,428.40 20,171.47 1.27% 26,644.58 Finance Cost 15,498.72 15,376.75 0.79% 20,101.47 Net Interest Income 4,858.50 4,689.14 3.61% 6,428.08 Profit Before T ax 4,820.13 4,694.78 2.67% 6,412.10 Profit After T ax 4,820.13 4,694.78 2.67% 6,412.10 T otal ComprehensiveIncome 4,819.34 4,723.39 2.03% 6,452.48 All figures are in INR Crore PRIVATE& CONFIDENTIAL
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Steps taken by IRFC for Business Diversification 10 PRIVATE& CONFIDENTIAL IRFC has taken various activities for the business diversification: ❖ IRFC has entered into MoUs with RITES, IIFCL and NTPC for strategic collaboration. ❖ IRFC has approved Financing of 20 BOBR Rakes procured under the General-Purpose Wagon Investment Scheme (GPWIS) of Ministry of Railways to NTPC for an amount up to INR 700 crore under Finance Lease. The lease agreement has been signed on 15th January 2025, for 8 BOBR Rakes. ❖ IRFC has successfully emerged as L1 Bidder for funding of a Rupee Term Loan of ₹3,167 crore for the capital expenditure funding of the Banhardih Coal Block of Patratu Vidyut Utpadan Nigam Limited (PVUNL). ❖ On 2nd Jan, 2025, a MoU is executed between IRFC and Railway Energy Management Company Ltd (REMCL), a JV of RITES LTD and Indian Railways to collaborate on financing Renewable Energy (RE) projects awarded by REMCL for supply to Indian Railways.
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PRIVATE & CONFIDENTIAL Way forward and Opportunities in Indian Railways ❖ As per charter, company can fund any entity which has backward or forward linkage with Indian Railways, viz ▪ Leasing of Rolling stock other than MoR including special purpose Wagons ▪ Funding of Railway Infrastructure being developed through State JV ▪ Upcoming Dedicated Freight lines of Semi/High Speed Railway Corridors & High-speed train ▪ Multi-Modal Logistics Parks ▪ Non-conventional sources of energy including Renewable Energy for railway network ▪ Financing Public-Private Partnership opportunities within the Railways sector including Re-financing 11 Backward Linkages Forward Linkages
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Thank You 12 PRIVATE& CONFIDENTIAL
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* The presentation is prepared based on un-audited financial statements of IRFC for the 9M ended 31st December 2024. *There is a possibility of Ind As financial results and the additional disclosures to be updated, modified or amended because of adjustments which may be required to be made on account of introduction of new Standards or its interpretation, receipt of guidelines or circulars from regulatorybodies and/or Reserve Bank of India. *This presentation may contain statements which reflects managements current views and estimates and may not be constructed as forward looking statements. The future involves uncertainties and risk that could cause actual results to differ materiality from the current views being expressed. Potential uncertainties and risk include factors such as general economic conditions, currency fluctuations, competitive product and pricing pressures, industrial relations and regulatory developments. * We do not update forwardlooking statements retrospectively. Such statements are valid on the date of publication and can be superseded. * Figures are regrouped / reclassified to make them comparable. * Analytical data are best estimates to facilitatesunderstanding of business and not meant to reconcile reported figures. * Answers will be given only to non price sensitivequestions. *This presentation is for information purpose only and do not constitute an offer or recommendation to buy or sell any securities of IRFC. Any action taken by you on the basis of information contained in presentation is your responsibility alone and IRFC or its directors or employeeswill not be liable in any manner for the consequences of such actions taken by you. Disclaimer 13 PRIVATE& CONFIDENTIAL
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PRIVATE& CONFIDENTIAL Financials- P & L Statement 14 Particulars Nine Months Ended 31 December 2024 Nine Months Ended 31 December 2023 Year Ended 31 March 2024 Revenue From Operations Interest Income 5,750.07 6,682.79 8,823.83 Lease Income 14,678.33 13,488.69 17,820.75 Total Revenue from Operations 20,428.40 20,171.48 26,644.58 Dividend Income 0.32 0.34 0.78 Other Income 3.89 6.12 10.56 Total Income 20,432.61 20,177.94 26,655.92 Expenses Finance Costs 15,498.72 15,376.76 20,101.47 Impairment on Financial Instruments -2.70 -4.43 -3.93 Employee Benefit Expense 9.18 8.59 11.17 Depreciation, Amortization and Impairment 4.02 7.72 9.44 Other Expenses 103.26 94.52 125.66 Total Expenses 15,612.48 15,483.16 20,243.81 Profit Before Exceptional Items and Tax 4,820.13 4,694.78 6,412.11 Exceptional Items - - - Profit Before Tax 4,820.13 4,694.78 6,412.11 Current Tax - - - Deferred Tax - - - Adjustment for Earlier Years - - - Profit for the Period from Continuing Operations 4,820.13 4,694.78 6,412.11 Statement of Profit and Loss (All amounts is INR Crore, unless stated otherwise)
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Financials-Balance Sheet –1/2 15 PRIVATE& CONFIDENTIAL Particulars As at 31st December, 2024 As at 31st December, 2023 As at 31st March 2024 (Audited) ASSETS Financial Assets Cash And Cash Equivalents 23.64 436.08 22.77 Bank Balance Other Than Cash and Cash Equivalents 301.12 273.61 444.60 Derivative Financial Instruments 436.39 455.27 489.79 Loans: - Loan to Railway Companies 4,474.39 4,944.51 4,944.51 - Lease Receivables 2,44,750.84 2,29,725.16 2,59,690.60 Investments 52.46 41.82 53.60 Other Financial Assets 2,19,577.11 2,38,681.30 2,07,255.00 Total Financial Assets 4,69,615.95 4,74,557.75 4,72,900.87 Non-financial assets Current Tax Assets (Net) 380.41 402.60 344.12 Property, Plant And Equipment 13.45 14.49 14.82 Right of Use Assets 3.91 8.55 6.25 Intangible assets under development 3.78 - 3.78 Other Intangible Assets 0.98 4.69 0.98 Other Non-Financial Assets 11,416.80 12,095.31 11,811.61 Total Non-Financial Assets 11,819.33 12,525.64 12,181.56 Total Assets 4,81,435.28 4,87,083.39 4,85,082.43 Balance Sheet (All amounts is INR Crore, unless stated otherwise)
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Financials – Balance sheet (2/2) 16 PRIVATE& CONFIDENTIAL LIABILITIES AND EQUITY LIABILITIES Financial Liabilities Derivative Financial Instruments 2,264.13 1,509.62 1,853.19 Payables - Trade payables (i) Total outstanding dues of micro enterprises and small enterprises - - - (ii) Total outstanding dues of creditors other than micro enterprises and small enterprises - - - - Other payables (i) Total outstanding dues of micro enterprises and small enterprises 0.31 0.29 1.11 (ii) Total outstanding dues of creditors other than micro enterprises and small enterprises 9.77 11.03 14.54 Debt Securities 2,43,337.89 2,18,815.30 2,25,094.23 Borrowings (Other Than Debt Securities) 1,63,186.05 1,93,272.55 1,86,937.87 Lease Liabilities 4.09 9.14 6.41 Other Financial Liabilities 20,341.34 25,814.89 21,450.44 Total Financial Liabilities 4,29,143.58 4,39,432.82 4,35,357.79 Non-Financial Liabilities Provisions 232.65 171.15 162.77 Other Non-Financial Liabilities 12.79 36.13 383.30 Total Non-Financial Liabilities 245.44 207.28 546.07 Total Liabilities 4,29,389.02 4,39,640.10 4,35,903.86 Equity Equity Share Capital 13,068.51 13,068.51 13,068.51 Other Equity 38,977.75 34,374.78 36,110.06 Total Equity 52,046.26 47,443.29 49,178.57 Total Liabilities And Equity 4,81,435.28 4,87,083.39 4,85,082.43