IRFC, the dedicated financing arm of the Indian Railways posted good quarter performance despite of the challenging environment.
The company posted profit growth of 68% year-on-year basis, PAT stands at Rs 1501cr as compared to Rs 892cr is the corresponding quarter last year.
The revenue from operations stood at Rs 4581cr as compared to Rs 3669cr, posted a growth of 25% year-on-year basis. AUM for the quarter ended 30th June stood at Rs 3, 66,155 cr as compared to Rs 2,73,500cr in Q1FY21, registering a growth of 34%.
Amitabh Banerjee, CMD, IRFC Joins ET NOW to help understand key financial parameters that lead to robust Q1FY22. The company enjoys sustained growth over the last 5-6 years. “Infrastructure investment in Indian Railways has not been dented despite the second wave,” says Amitabh Banerjee.
He believes the pace of infrastructure development in India Railways has resulted in healthy disbursements. IRFC will be financing a major portion of the capex requirement of Indian Railways over a period of time, he further adds.
Moreover, he further highlights the contribution of IRFC towards financing capex outlay. Last year company had financed about 68% of the total capex outlay of Indian Railways summing up to 1,05,000cr.
“This year we are given initial target of financing 65,258cr to begin with. We hope that with due course of time the figure might increase” says Amitabh Banerjee.
After analyzing the past trends, he is of the opinion that the proportion of capex in Indian railways financed by IRFC has resulted in huge upsurge over last 5-6 years that has resulted in robust performance in IRFC.
