Highlights:

The asset under management of the company has increased by 15% to Rs 4.15 lakh crore end March 2020 to over March 2021.

The business model of the company is a low-risk business model and all the risks are beard by Ministry of Railways. The company is also top rated by all credit rating agencies in India. The rating of the company is at par with sovereign.

The company has been consistently diversifying its sources of borrowing and maintaining low cost of fund. In fact, it is the mandate of the company to keep low cost of funds to improve the that the project viability.

With the long term lending, the focus of the company is very strong on asset liability management.

The company has very high operating efficiency and it is one of the low cost company.

The return ratios of the company are very healthy with RoE at 15% and RoA a at 1.5% for FY2022.

The company does not pay any tax due to unabsorbed depreciation losses.

There is a lot of scope for Indian Railway expansion and lending opportunities for the company.

The company is charging uniform spread of 40 bps over weighted average cost of borrowing.

Within the borrowings, term loans account for 33%, bonds 44%, national savings funds 4% and ECB 17%.

Leverage ratio stood at 9.4x and net interest margin stood at 1.6% in FY2022.

The company has raised US$ 1.1 billion of green loans and also issued green bonds amounting to US$ 500 million.

The company has requested Ministry of Railways for raising the spreads on borrowing and the request is under consideration of the Railways.

The capital adequacy ratio of the company is very strong at 440%, while the company has to maintain the balance between dividend payment and maintaining the gearing ratio which is 9.4x.

The company would be comfortable in allowing the net gearing ratio rising above 10x, as the company does not want to raise capital.

The disbursements of the company have declined to Rs 59899 crore in FY2022 from Rs 104369 crore in FY2022, mainly on account of better fiscal conditions of the government driven by higher GST collections.

The company financed 67% of the capital outlay of the Railways in FY2021, which is reduced to 32% in FY2022.

Despite the increase in g-sec yield, the company has reduced cost of borrowing to 6.42% from 6.51% last year.

The operating expenses of the company were impacted due to higher CSR spend in Q4 and higher employee expenses.

The company is planning for securitization of its loan book and aims for significant amount of securitization of its receivables.