IRFC shares trade flat ahead of record date for final dividend for FY24

IRFC stock price remained in focus this week ahead of record date for final dividend.

IRFC shares were trading flat at Rs 178.87 apiece on the National Stock Exchange (NSE), declining 0.72 percent ahead of record date for the final dividend for FY24 this week.

The board of the company, under the Ministry of Railways, in May had recommended a final dividend of 7 percent for the shareholders, translating to Rs 0.7 per share on the face value of Rs 10 each for the financial year 2023-24.

Later, in an exchange filing this month, the company fixed August 22 as the record date for the purpose of determining the eligibility of the shareholders to receive final dividend. The dividend will be paid within a period of 30 days from the conclusion of the AGM, the company said in a statement.

The final dividend was in addition to the interim dividend of Rs 0.8 per equity share declared on November 2, 2023, thereby taking total dividend for the Financial Year 2023-24 to Rs 1.50 per share.

IRFC has a dividend yield of 0.84 percent at the current levels.

The main goal of IRFC is to use market borrowings to finance the majority of the Indian Railways' extra budgetary resource (EBR) requirements.

IRFC stock has delivered multibagger returns to its shareholders in the last one year, as per BSE data, rising 278.92 percent. In the last two years, the counter advanced 742.35 percent on the BSE.

The railway financier recorded revenue of Rs 6,765 crore for the June quarter, up 1.4 percent from Rs 6,673 crore for the same period the previous year. With a net profit of Rs 1,576 crore as opposed to Rs 1,551 crore the previous year, IRFC's earnings remained almost flat year over year.

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