Q4 FY '24 Earnings Conference Call Summary
Overview of IRFC's Role
• Chairman and Managing Director: Ms. Uma Ranade emphasized IRFC as the sole market borrowing arm for Indian Railways.
• Capital Expenditure Focus: Infrastructure enhancement, safety, and logistics cost reduction.
• Budget Allocation: INR 252,000 crores for FY 2024-25, targeting major economic corridors and new track laying (40,000 km over 6-8 years).
• Budgetary Support: No extra budgetary resources required for FY 2024.
Financial Highlights
• Director of Finance: Ms. Shelly Verma presented key financial metrics.
• Ownership: 86.36% government ownership.
• Financing Model: Primarily through finance lease, with low-risk margins.
• Assets Under Management: INR 4.64 lakh crores, 98.94% allocated to Indian Railways.
• Revenue and Profit: Revenue of INR 26,644.56 crores and profit of INR 6,412.10 crores for FY 2024.
• Dividend Recommendation: Total of INR 1.50 per share for FY 2023-24.
Disbursement and Growth Potential
• Disbursement Figures: Previous year's figures affected by budgetary support; expected inflow from lease payments post-moratorium.
• Diversification Plans: Exploring partnerships with other finance companies; timeline for execution within two years.
• Stable Spreads: No expected changes in spreads charged by IRFC.
Net Interest Income (NII) Outlook
• NII Growth Inquiry: Stable NII expected; no sharp increases or declines anticipated.
• Moratorium Impact: Interest capitalized during moratorium helped maintain AUM.
• New Ventures: Focus on railway sector projects, including renewables; potential for higher spreads based on project credit profiles.
Borrowing Clarification
• FY '25 Borrowing: INR 50,000 crores to cover disbursements and refinancing needs based on interim budget.
Conclusion
• Management's Gratitude: Expressed appreciation to participants and offered further assistance for queries.

Indian Railway Finance Corporation (IRFC) Earnings Call Summary
Overview
• Date of Call: May 29, 2023
• Focus: Audited financial results for Q4 FY23 and year ending March 31, 2023.
• Key Executive: Ms. Shelly Verma, Chairman and Managing Director.
Financial Highlights
• Union Budget Allocation: INR 2.4 lakh crores for railways in FY23-24.
• Assets Under Management (AUM): Grew by 8.63% to INR 4.67 lakh crores (98.73% for Indian Railways).
• Disbursements: Totaled INR 32,378 crores, lower than target.
• Revenue: Increased by 17.7% to INR 23,891 crores.
• Profit: Grew by 4% to INR 6,337 crores.
• Dividends: Final dividend of INR 0.70 per share; total for the year is INR 1.50.
Q&A Highlights
• Disbursement Decrease: Explained by increased government budgetary support reducing borrowing needs.
• Funding Diversification: Establishing a lending framework for commercial projects.
• Net Interest Margin (NIM): Expected to stabilize around 1.4%-1.5%.
• Borrowing Program: INR 50,000 crores proposed for potential projects and refinancing.
• Key Risks: Transitioning to commercial lending and maintaining return on equity (ROE) of 14%.
Additional Insights
• Asset Replacement: No significant risks from obsolete diesel engines; assets replaced after 15 years.
• Share Price Concerns: Influenced by market forces; business model remains robust.
• Budgetary Support Impact: Primarily for Indian Railways' capital expenditure; IRFC's role is external commercial borrowings (EBR).
• Funding Model: Margins vary based on project risk profiles; no central cap on funding.
• Future Growth: Plans for a vertical for non-railway assets to drive revenue and profit growth.
Conclusion
• Management's Outlook: Strong past disbursements; future growth anticipated as non-railway assets are developed.
• Communication: Participants invited to send further inquiries via email.