Indian Railways Finance Corporation (IRFC), the financing arm of the Indian Railways, has reported its Q3 earnings for the financial year 2022-23, showcasing a 2.5 percent increase in net profit and a 22 percent increase in revenue compared to the same quarter last year.

According to the company's earnings statement, IRFC's net profit for Q3 stood at Rs 1,633 crore, compared to Rs 1,594 crore in the same period last year. This modest growth in net profit can be attributed to the company's steady revenue performance and improved operational efficiency.

Revenue for the quarter was up 22 percent YoY, reaching Rs 6,218 crore, compared to Rs 5,096 crore in the same quarter last year.

Total expenses during the quarter amounted to Rs 4588.58 crore, up 31 percent YoY. Over 99 percent of all expenses in the third quarter were related to finance charges, which rose by 30 percent YoY.

On December 31, 2022, the debt-to-equity ratio was 9.13 times, down from 9.34 times on December 31, 2021. Capital-to-risk-weighted assets ration stood at 482.11 percent.

Net profit margin decreased by 502 bps to 26.25 percent in the third quarter compared to the same period last year, while operating profit margin fell by 505 bps to 26.20 percent.

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