We interacted with Indian Railway Finance Corporation (IRFC) management to get their perspective on asset growth, income recognition, margins, and other business aspects. IRFC management reiterated their stance on strong AUM growth (Q3FY21 AUM grew 26.8% YoY) and follows increased capital outlay by the Ministry of railways. Superior credit ratings and diversified borrowing mix saw the cost of borrowings reduce further (9MFY21 marginal cost of borrowings at 6.4%), and thus retain margins at 1.4% (annualized for FY21). Exposure to sovereign has attributed to NIL NPA and excessively high capital-adequacy. Revenue/earnings growth thus have remained healthy (Q3FY21...