Indian Railway Finance Corp. Ltd. · NSE:IRFC

Indian Railway Finance — FY2021 Earnings Presentation

22 slides from Indian Railway Finance's earnings presentation, Jun 30, 2021

  1. Slide 1: Intimation of Investor Presentation to stock exchanges

    INDIAN RAILWAY FINANCE CORPORATION LTD. (A Government of India Enterprise) (CIN : U65910DL1986GOI026363) Regd. Office: Room Nos. 1316 - 1349, 3rd Floor, Hotel The Ashok, Diplomatic Enclave, 50-B, Chanakyapuri, New Delhi - 110021 Phone - 011 24100385 E-mail : info@irfc.nic.in, Website : www. irfc.nic

  2. Slide 2: Investor's Presentation - FY 2020-21

    Indian Railway Finance Corporation Limited Investor’s Presentation- FY 2020-21 30th June 2021 PRIVATE & CONFIDENTIAL

  3. Slide 3: Company Overview

    Company Overview Company Profile AUM Break-Up (FY 20-21)  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 46% 52%  Primary business: • Financing the

  4. 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

  5. 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

  6. 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

  7. Slide 7: FY 2020-21: Snapshot of Annual Key Financials

    FY 2020-21: Snapshot of Annual Key Financials Particulars FY 2018-19* FY 2019-20* FY 2020-21* Revenue from Operations 1,09,87.35 13,421.01 15,770.47 Finance Cost 8,183.06 10,162.66 11,237.05 Net Interest Income 2,781.58 3,224.53 4,533.40 Profit Before Tax 2,755.34 3,192.09 4,416.13 Profit After Tax

  8. Slide 8: FY 2020-21: Snapshot of Quarterly Key Financials

    FY 2020-21: Snapshot of Quarterly Key Financials Particulars Q4 FY 20 Q4 FY 21 Growth % Revenue from Operations 3,202.52 4,454.97 38.98% Profit before tax 654.66 1,482.55 126.46% Profit After Tax 654.66 1,482.55 126.46% All figures are in INR Crore PRIVATE & CONFIDENTIAL 7

  9. Slide 9: Quarter wise disbursement

    Quarter wise disbursement Particulars FY 19 FY 20 FY 21 Q1 5,666 5,860 8,700 Q2 4,500 11,364 9,865 Q3 5,046 12,139 16,550 Q4 37,268 42,029 69,246 Total Disbursement 52,480 71,392 1,04,370 All figures are in INR Crore PRIVATE & CONFIDENTIAL 8

  10. Slide 10: Key Ratios

    Key Ratios Particulars FY 2020-21 Net Interest Margin 1.43% Return on Net Worth 13.34% Interest Coverage Ratio 1.39x Debt / Equity Ratio 9x CRAR 415.85 % PRIVATE & CONFIDENTIAL 9

  11. Slide 11: Consistent Financial Performance

    Consistent Financial Performance Assets Under Management Net Interest Income (NII) and NIM % 1.43% 3,60,079 2,66,137 1.38% 1.57% 1.83% 2,00,937 4,533 1,54,535 3,225 2,554 2,782 2017-18 2018-19 2019-20 2020-21 2017-18 2018-19 2019-20 2020-21 Return Ratios CRAR and Net Gearing Ratio 13.3% 9.0 12.3% 11

  12. Slide 12: Borrowing Highlights for FY 2020-21

    Borrowing Highlights for FY 2020-21 Amount of ₹ 61,300 crore was raised Majority of term loans drawn, were structured on 5+10 basis Rupee Term Loans Utilized for disbursement & retiring high cost loans Mobilized USD 4.075 Billion, highest ever ECB in a single year External USD 750 million 144A 10-ye

  13. Slide 13: 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 borrowings as of 31st March 2021 Particular

  14. Slide 14: 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

  15. Slide 15: 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

  16. Slide 16: 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

  17. Slide 17: Financials – P & L Statement

    Financials – P & L Statement (INR Mn) FY18 FY19 FY20 FY 21 Revenue from operations Interest income 988.57 1,723.07 2,748.00 3,943.64 Dividend income 0.49 0.51 0.59 0.25 Lease income 8,217.91 9,263.77 10,672.43 11,826.56 Total revenue from operations 9,206.97 10,987.35 13,421.02 15,770.45 Other incom

  18. Slide 18: Financials – Balance sheet (1/2)

    Financials – Balance sheet (1/2) Particulars FY18 FY19 FY20 FY 21 ASSETS Financial assets Cash and cash equivalents 1.13 3.71 1.38 297.19 Bank balance other than above 98.69 77.36 99.38 161.73 Derivative financial instruments 96.85 46.69 - 76.01 Receivables 0.00 0.00 0.00 0.00 - Lease receivables 10

  19. Slide 19: Financials – Balance sheet (2/2)

    Financials – Balance sheet (2/2) Particulars FY18 FY19 FY20 FY 21 LIABILITIES AND EQUITY LIABILITIES Financial liabilities Derivative financial instruments 749.58 310.69 406.515 360.13 Payables 0 0 0 0 - Trade payables 0 0 0 0 (i) total outstanding dues of micro enterprises and small enterprises - -

  20. Slide 20: Disclaimer 1/2

    DISCLAIMER-1/2 -The presentation is prepared based on audited financial statements of IRFC the financial year 2020-21 - 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 acco

  21. Slide 21: Disclaimer 2/2

    DISCLAIMER-2/2 - we do not update forward looking statements retrospectively. Such statements are valid on the date of publication and can be super ceded. - figures are regrouped / reclassified to make them comparable. - -“Analytical data are best estimates to facilitates understanding of business a

  22. Slide 22: Thank You

    Thank You PRIVATE & CONFIDENTIAL 21

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