Earnings Review
PFC posts record high profit Jul-Sept on provision reversal
This story was originally published at 19:12 IST on 8 November 2024
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--PFC Apr-Sept revenue INR 251.17 bln vs INR 219.26 bln year ago
--PFC Apr-Sept net profit INR 80.88 bln vs INR 68.54 bln year ago
--PFC to pay INR 3.50 per share interim dividend; record date Nov 25
--PFC Jul-Sept revenue INR 132.07 bln vs INR 117.87 bln year ago
--PFC Jul-Sept net profit INR 43.70 bln vs INR 38.47 bln year ago
By Krity Ambey
NEW DELHI – The Power Finance Corp. Ltd. reported a record high net profit in Jul-Sept on account of a reversal in provisions. The company's profit for the reporting quarter was higher than expectations.
Propelled by a provision reversal of INR 1.24 billion, PFC's profit rose 13.6% from a year ago to INR 43.70 billion in the quarter ended September. Sequentially, the company's net profit was up 17.5%.
Elara Securities (India) Pvt Ltd had estimated the company's profit to fall on-year as well as on-quarter to INR 36.93 billion. Due to lower profit expectations, shares of PFC closed 2.73% lower at INR 449.40 Friday on the National Stock Exchange. The non-banking finance company released its September quarter earnings just minutes before the market closure.
"Our commitment to financial health extends beyond profitability. This quarter, we successfully reduced net NPA (non-performing asset) levels below 1%, reaching a level of 0.72%," PFC said in a press release quoting its Director (Finance) Sandeep Kumar. The company's gross NPA ratio fell to 2.71% at the end of September, as compared to 3.67% a year ago.
The power financier's revenue from operations rose 12% on year to INR 132.07 billion in Jul-Sept. Sequentially, the revenue from operations increased 10.9% from INR 119.10 billion rupees in Apr-Jun.
PFC is a non-banking financial company under the administrative control of the Ministry of Power. The company provides loans to state electricity boards, state-owned power utilities, rural electric cooperatives, and independent power producers.
The company's profit for the first half of the fiscal year grew 18% to INR 80.88 billion. Its revenue also increased 14.6% to INR 251.17 billion during Apr-Sept. The company has also declared an interim dividend of 3.50 rupees per share. End
Edited by Deepshikha Bhardwaj
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