Indian Railway Finance Corp. Ltd. · NSE:IRFC
Indian Railway Finance — Q1 FY2022 Earnings Presentation
19 slides from Indian Railway Finance's earnings presentation, Aug 17, 2021
Slide 1: Intimation of Investor Presentation (exchange filing letter)
INDIAN RAILWAY FINANCE CORPORATION LTD. (A Government of India Enterprise) (CIN : l:65910DL1986G01026363) Regd. Office : Room Nos.1316 -1349, 3rd Floor, The Ashok, Diplomatic Enclave:-50-8, Chanakyapuri, New Delhi 110021 Phone : oil-241oo385, E-mail : info@irfc.nic.in, Website : www.irfc.nic.ih No:
Slide 2: Investor's Presentation - Quarter 1 FY 2021-22
Indian Railway Finance Corporation Limited Investor’s Presentation- Quarter 1- FY 2021-22 17th August 2021 PRIVATE & CONFIDENTIAL
Slide 3: Company Overview
Company Overview Company Profile AUM Break-Up (Quarter-ended 30th June 2021) IRFC is registered with RBI as a Systemically Important NBFC-ND-IFC, majorly owned by the GoI, acting through Ministry of Railways (MoR) 2% Dedicated market borrowing arm for the Indian Railways Primary business: 46%
Slide 4: Growth Journey
Growth Journey Registered as an NBFC Raised FCY GoI permitted Set up EMTN MCA advised the Company to apply Issued secured, TL from IRFC to raise tax Programme for USD paragraph 11 of Ind AS 01, first time redeemable, non- American saving bonds 2 Billion adoption of Ind AS read with Ind A
Slide 5: Key Strengths
Key Strengths Dedicated market borrowing arm for the Indian Railways (IR) Strategic role in growth of 1 Indian Railways Financed 67.3% of the capital outlay of the IR in FY 20-21 Highest ever annual disbursement to MoR, at INR 1,04,369 crore during the FY 20- 21 Highest credit rating for an
Slide 6: IRFC is a Systemically Important NBFC-ND-IFC and enjoys certain regulatory exemptions
IRFC is a Systemically Important NBFC-ND-IFC and enjoys certain regulatory exemptions IRFC is exempted from the RBI’s asset classification norms to the extent of its direct exposure on the sovereign- MoR Asset classification norms However, company follows the asset classification norms as provid
Slide 7: Snapshot of Key Financials
Snapshot of Key Financials Quarter Ended Year-Ended Particulars 30th June 2021# 30th June 2020# 31st March 2021 Revenue from Operations 4,581.56 3,669.22 15,770.47 Finance Cost 8,183.06 10,162.66 11,237.05 Net Interest Income 1,508.07 928.54 4,533.40 Profit Before Tax 1,501.95 891.81 4,416.13 Profit
Slide 8: Snapshot of Quarterly Key Financials
Snapshot of Quarterly Key Financials Quarter-Ended 30th Quarter-Ended 30th Particulars Growth % June 2021# June 2020# Revenue from Operations 4,581.56 3,669.92 24.87% Profit before tax 68.42% 1,501.95 891.81 Profit After Tax 68.42% 1,501.95 891.81 All figures are in INR Crore # Unaudited PRIVATE & C
Slide 9: Key Ratios - Quarter 1 of FY 2021-22
Key Ratios- Quarter 1 of FY 2021-22 Quarter-ended 30th June Particulars 2021 Net Interest Margin 1.66% (Annualized) Return on Net Worth 15.78% (Annualized) Interest Coverage Ratio 1.49 x Debt / Equity Ratio 8.78 x CRAR 468 % PRIVATE & CONFIDENTIAL 8
Slide 10: Consistent Financial Performance
Consistent Financial Performance Assets Under Management 3,60,078.9 3,66,155.2 2,66,137.0 2,00,937.3 1,54,534.7 2017-18 2018-19 2019-20 2020-21 Q1 2021-22 Return Ratios CRAR and Net Gearing Ratio 15.78% 9.0 8.78 13.34% 7.7 12.32% 7.0 11.57% 6.6 9.47% 468% 395% 416% 321% 347% 1.38% 1.16% 1.32% 1.35%
Slide 11: Competitive cost of borrowings based on strong credit ratings and diversified sources
Competitive cost of borrowings based on strong credit ratings in India and diversified sources of funding Diversified sources of funding, credit ratings and strategic relationship with the MoR, have enabled IRFC to keep costs of borrowing competitive Total Outstanding Borrowings as of 30th June 2021
Slide 12: Strategic role in financing growth of Indian Railways
Strategic role in financing growth of Indian Railways (2/1) IRFC Share in Indian Railways Rolling Stock as of 31st March, 2020 (No. of Units / %) 2,93,077 Freight 82.25% Wagons 2,41,082 76,608 Passenger Coaches 86.99% 66,642 12,729 Locomotives 89.02% 11,332 Rolling Stock Assets held by the IR Rollin
Slide 13: Low risk, cost-plus business model (1/2)
Low risk, cost –plus business model (1/2) Financing of Rolling Stock Assets 30 years (primary period & secondary period of 15 years) Lender / Bond Subscriber During the primary and secondary lease periods, the full value Lease Period of assets, including interest, has been recovered from the MoR
Slide 14: Low risk, cost-plus business model (2/2)
Low risk, cost –plus business model (2/2) Financing of Project Assets IRFC acquired leasehold interest in the project assets under a lease Lender / Bond Subscriber agreement and MoR is required to pay lease rentals. Interest & Bond However, IRFC is yet to execute the lease, license and developme
Slide 15: Financials - P & L Statement
Financials- P & L Statement Quarter- Ended Year- Ended (INR Crore) June 2021# March 2021# June 2020# March 2021* Revenue from operations Interest income 1,660.14 1,176.39 872.26 3,943.66 Dividend income 0.15 0.02 - 0.25 Lease income 2,921.27 3,278.56 2,796.96 11,826.56 Total revenue from operations
Slide 16: Financials - Balance sheet (1/2)
Financials – Balance sheet (1/2) INR/Crore Particulars As at 30th June 2021# As at 30th June 2020# As at 31st March 2021* ASSETS Financial assets Cash and cash equivalents 109.40 6.45 297.19 Bank balance other than above 93.04 199.88 161.73 Derivative financial instruments 82.28 - 76.01 Receivables
Slide 17: Financials - Balance sheet (2/2)
Financials – Balance sheet (2/2) INR/Crore Particulars As at 30th June 2021# As at 30th June 2020# As at 31st March 2021* LIABILITIES AND EQUITY LIABILITIES Financial liabilities Derivative financial instruments 368.79 428.57 360.13 Payables - Trade payables (i) total outstanding dues of micro enter
Slide 18: Disclaimer
Disclaimer * The presentation is prepared based on unaudited financial statements of IRFC the Quarter ended 30th June 2021 * 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
Slide 19: Thank You
Thank You PRIVATE & CONFIDENTIAL 18
Indian Railway Finance — Q1 FY2022 Earnings Presentation on 6ix