Power Finance Corporation Limited : Q1’25 Results.

Consolidated Financial Highlights

• 20% increase registered in consolidated Profit After Tax from Rs. 5,982 cr. in Q1’24 to Rs. 7,182 cr. for Q1’25.
• Consolidated Loan Asset Book crosses 10 lakh crores mark and stands at Rs.10,04,735 cr. as on 30.06.2024 vs. Rs.8,86,723 as on 30.06.2023.
• Consolidated Net worth (including non-controlling interest) increased by 20% from Rs. 1,18,367 cr. as on 30.06.2023 to Rs. 1,41,940 cr. as on 30.06.2024
• Owing to concentrated resolution efforts, consolidated Gross NPA has reached below 3% and is at 2.97% in Q1’25 from 3.54% in Q1’24.
• Consolidated Net NPA also declined significantly by 16 bps from 1% in Q1’24 to 0.84% in Q1’25.

Stand Alone Financial Highlights

• 24% increase registered in Standalone Profit After Tax from Rs. 3,007 cr. in Q1’24 to Rs. 3,718 cr. for Q1’25.
• Interim Dividend of Rs. 3.25 per share declared by Board in Q1’25.
• 10% growth witnessed in loan asset book- from Rs. 4,32,339 cr. as on 30.06.2023 to Rs.4,75,007 cr. as on 30.06.2024.
• PFC continues to maintain comfortable capital adequacy levels. CRAR as on 30 th June, 2024 is at 27.10%, with Tier 1 capital at 24.86%.
• PFC’s net worth has surpassed the Rs. 80,000 crore mark and now stands at Rs. 83,265 cr. as on 30.06.2024, an increase of 17% from 30.06.2023.
• No new NPA added in more than a year. The Gross NPA ratio saw a significant reduction of 44 bps viz-a-viz Q1’24 and is at 3.38% for Q1’25.
• The Net NPA ratio is at 0.87% for Q1’25 vs 1.04% for Q1’24, decrease of 17 bps

Management Comments

On PFC’s performance, Director (Finance), Mr. Sandeep Kumar shared that “PFC continued to deliver healthy profits quarter on quarter. Our net profit increased by 24% year-on-year to Rs. 3,718 crore, driven by a strong 24% growth in Net Interest Income. Further, PFC’s financial position remains strong, with a net worth of Rs. 83,265 crore and a comfortable capital adequacy ratio of 27% providing a solid foundation for future growth of the Company”.

On PFC’s performance, Chairman and Managing Director, Ms. Parminder Chopra shared that “PFC’s sustained success is reflected in its ability to deliver value to shareholders. The company’s strong performance has enabled it to declare an interim dividend of Rs. 3.25 per share in Q1’25.”

Further, the long-term power sector outlook looks promising. The initiatives outlined by the Govt. in its budget will create a strong ground for capex growth in the power sector. PFC is well positioned to capitalize on these opportunities.

Also, in PFC we are embracing ESG. Recently, PFC’s First ESG Report was unveiled. This comprehensive document enumerates our vision and practices being followed across the ESG spectrum. We are committed in our pursuit of a greener and more sustainable future”.