IRFC Vs RVNL: Decoding Q3 Results! From Profits, Revenues To EPS, Dividend; Who Performed Better?

Two of the leading Indian Railway companies, IRFC and RVNL have declared their Q3 results for FY24 this week. Both stocks have traded broadly on a volatile note. The stocks are likely to be in focus going ahead. Let's find out who performed better in Q3FY24.

On February 9th, IRFC shares ended at Rs 153.70 apiece, down by 5.12% with a market cap of Rs 2,00,862.94 crore. RVNL shares ended at Rs 259.20 apiece, lower by 8% with a market cap of Rs 54,043.72 crore.

In the trading week from February 5th to 9th, RVNL shares dropped by 11%, and IRFC shares shed over 8% on BSE.

RVNL VS IRFC, Who Is Better?

Let's decode Q3 earnings of IRFC and RVNL:

1. Profitability:

RVNL posted a decline in both quarter-on-quarter and year-on-year levels. In Q3FY24, the company's net profit was at Rs 358.57 crore, down by 6.24% from the profit of R 382.42 crore in the same quarter a year ago. While the Q3FY24 PAT dipped by 3% from Rs 394.10 crore recorded in Q2FY24.

IRFC's profitability was a mixed bag with a decline on the YoY level but an upside on the QoQ front. In Q3FY24, the largest railway company in terms of market share, registered a net profit of Rs 1,602.23 crore, down by 1.8% from PAT of Rs 1,633.45 crore in Q3FY23, but gained by 5.4% from the profit of Rs 1,549.87 crore in Q2FY24.

2. Top-Line Performance:

Just like the bottom line, RVNL also could not get any gains in revenue from operations. In Q3FY24, RVNL's revenue dipped by 6.43% YoY and 4.6% QoQ to Rs 4,689.33 crore.

Meanwhile, IRFC's revenue was healthy on the YoY front, but slightly down from QoQ. In Q3FY24, IRFC's revenue was at Rs 6,741.86 crore, up by 8.4% YoY but down by 0.36% QoQ. The revenue was driven by interest income which came in at Rs 2,334.84 crore in Q3FY24.

3. Total Expenses:

Interestingly, RVNL's expenses were down on both the YoY and QoQ front. In the third quarter of FY24, the company's total expenses were at Rs 4,584.44 crore, compared to Rs 4,889.05 crore in Q3FY23, and Rs 4,754.94 crore in Q2FY24.

On the other hand, IRFC's expenses were down sequentially but scaled up year-on-year. IRFC's total expenses were at Rs 5,141.08 crore in Q3FY24, as against Rs 4,588.58 crore in Q3FY23, and Rs 5,217.61 crore in Q2FY24.

4. Earnings Per Share:

EPS of RVNL declined to Rs 1.72 per share in Q3FY24, versus Rs 1.83 per share in Q3FY23 and Rs 1.89 per share in Q2FY24.

Moreover, IRFC's EPS were a mixed tone, coming at Rs 1.23 per share in Q3FY24 versus Rs 1.25 per share in Q3FY23 and Rs 1.20 per share in Q2FY24.

5. Any Dividends?

After Q3 earnings, RVNL and IRFC did not declare any dividends for investors. The two are dividend-paying railway stocks.

Currently, on their market price, RVNL has a dividend yield of 0.82%, and IRFC's yield is at 0.98%.

In 2023, RVNL paid dividends up to 21.30% amounting to Rs 2.13 per share, while IRFC paid dividends up to 15% aggregating to Rs 1.5 per share.