Indian Railway Finance Corporation Increases Dividend Payouts for Financial Year 2024

Indian Railway Finance Corporation Ltd (IRFC) marked a significant increase in its dividend payouts for the fiscal year 2024 with a final dividend announcement coupled with exceptional financial results in the fourth quarter.

As part of its earnings report for FY24 and Q4 FY24 issued on Monday, NSE-listed IRFC declared a final dividend of ₹0.7 per share, augmenting its total payout for the year to ₹1.5 per share.

The dividend, which followed an earlier interim dividend of ₹0.8 per share, has attracted the attention of shareholders and investors alike. The total dividend payout for IRFC in FY23 was similar at ₹1.5 per share.

IRFC, with its single largest shareholder being the Union Government, has continued its trend of rewarding shareholders with consistent dividends over the past years. This latest dividend announcement is anticipated to benefit the government with a tranche of around ₹790 crore based on its stake in the railway financier.

With the AGM date for approving the dividend yet to be fixed, IRFC plans to distribute the approved dividend to all shareholders within 30 days post approval. This dividend increase demonstrates the company’s commitment to rewarding its investors amidst positive financial performance.

The thriving performance of IRFC’s stock since its listing in January 2021 has been notable. The market capitalization for IRFC currently stands at ₹2.26 lakh crore, positioning it as a significant stakeholder in the railway sector’s financial ecosystem.

In addition to the financial results, IRFC’s board has greenlit fund-raising plans amounting to ₹50,000 crore from domestic and international markets. The intended fund-raising will be carried out via a range of instruments such as tax-free bonds, private or public taxable bonds, and other eligible funding options based on market dynamics.