Indian Railway Finance Corporation Limited (IRFC) share price traded 5% higher after it reported a 34% rise in profit to Rs 1,717.3 crore for the March 2024 quarter due to higher income, compared to a profit of Rs 1,285.2 crore during the fourth quarter of the last fiscal year, as stated in a recent regulatory filing.

The net profit grew by 34%, reaching a total income of Rs 6,478 crore.

The state-owned company reported a profit of Rs 1,285.2 crore during the fourth quarter of the last fiscal year, as stated in a regulatory filing by former railway officials who emphasized the importance of pending remodelling projects.

The Board of Directors has also approved raising resources of up to Rs 50,000 crore from both domestic and international markets for the financial year 2024-25.

The company’s total income for the January-March quarter rose to Rs 6,477.9 crore from Rs 6,230.2 crore in the previous fiscal year. Its expenses stood at Rs 4,760.6 crore during this period, compared to Rs 4,945 crore a year ago.

The company’s board also approved a final dividend of 70 paise per share for FY 2023-24.

This will be accomplished through a mix of tax-free and taxable bonds on a private placement or public issue basis, including capital gain, government-guaranteed, and government-serviced bonds.

The primary objective of IRFC, under the Ministry of Railways, is to meet the Indian Railways’ significant portion of extra-budgetary resources (EBR) requirement through market borrowings at competitive rates and terms.

At 2:09 pm, the shares of IRFC were trading 3.69% higher at Rs 179.65 on NSE.