This stock engaged in the lending business to Indian railways is in focus after making this key announcement. In this article, we will look at the order announcement.
Price Movement
With a market capitalization of Rs 1,68,714 crore, the shares of Indian Railway Finance Corporation Ltd are currently trading at Rs 129 per share, down by 43.6 percent from its 52-week high of Rs 229 per share. During the last one year, the stock has given a negative return of 14.32 percent.
About the announcement
On Friday, Indian Railway Finance Corporation (IRFC) announced that it had emerged as the lowest (L1) bidder for a major Rs. 5,000 crore Rupee Term Loan (RTL) tender floated by NTPC.
This comes in the context of a competitive bidding process launched by NTPC to raise funds for its growing infrastructure and energy development initiatives. The loan will be used to finance NTPC’s capital expenditure requirements, including the new and ongoing capacity addition projects, purchase of power assets, development of renewable energy businesses, and upgradation and modernization of existing plants. It will also assist in refinancing existing loans to minimize costs and enhance financial efficiency.
The auction was held on April 18, 2025, and IRFC’s bid was accepted by NTPC through a letter dated April 24, 2025. This is a strategic step for IRFC to further solidify its position as a prominent financial partner for the growth of India’s energy infrastructure, specifically in backing green and sustainable projects pursued by public sector undertakings such as NTPC.
Financial Highlights
It reported a revenue of Rs 6,763 crores in Q3 FY25, up by 0.38 percent, from its Q3 FY24 revenue of Rs 6,737 crores. However, it reported a slight increase of 2 percent in its Q3 FY25 net profit of Rs 1,631 crore versus net profit of Rs 1,599 crore in Q3 FY24. It has an ROE and ROCE of 13.66 percent and 5.73 percent respectively and is trading at a P/E of 25.81x as compared to its industry average of 22.66x.
About the company
Indian Railway Finance Corporation Limited (IRFC), founded in New Delhi in 1986, is a non-banking finance and infrastructure finance firm. IRFC mainly leases Indian Railways’ railway infrastructure and rolling stock assets. IRFC mobilizes funds in the financial markets to fund these assets and the expansion and modernization of India’s railway network.
Written by Satyajeet Mukherjee
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