Earnings Review
PFC's Oct-Dec net profit rises 23% on lower provisioning, strong revenue
This story was originally published at 14:49 IST on 12 February 2025
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--PFC net NPA at 0.71% as on Dec 31 vs 0.72% quarter ago
--PFC gross NPA at 2.68% as on Dec 31 vs 2.71% quarter ago
--PFC Apr-Dec revenue INR 381.60 bln vs INR 337.79 bln year ago
--PFC Apr-Dec net profit INR 122.43 bln vs INR 102.32 bln year ago
--PFC to pay INR 3.50 per share interim dividend; record date Feb 28
--PFC Oct-Dec revenue INR 130.44 bln vs INR 118.53 bln year ago
--PFC Oct-Dec net profit INR 41.55 bln vs INR 33.77 bln year ago
By Krity Ambey
NEW DELHI - Power Finance Corp. Ltd. reported a 23% growth in its net profit at INR 41.55 billion for Oct-Dec on account of significantly lower provisioning and robust revenue growth. Sequentially, however, the company's profit fell after an all-time high of INR 43.70 billion in the quarter ended September.
The company's provisioning for the December quarter fell 71.6% to INR 744.80 million. In Jul-Sept, the company had reported a provision reversal of INR 1.24 billion.
The power sector financier's profit for Oct-Dec also got support from a 10% growth in its revenue from operations to INR 130.44 billion.
The asset quality improvement continued in Oct-Dec, with the company reporting the lowest ever net non-performing asset ratio of 0.71% as on Dec 31, compared to 0.72% a quarter ago. "Our improving asset quality, reflected in the lowest-ever net NPA (non-performing asset) ratio, further strengthens our financial position," PFC Director (Finance) Sandeep Kumar said in a press note. The company's gross NPA ratio also fell to 2.68% at the end of December, against 2.71% as on Sept. 30.
After the compny released its strong financial results for Oct-Dec, its share price rose 2% to INR 384.15 from the day's opening price of INR 375.95. At 1442 IST, the shares were trading 1% lower at INR 372.20 on the Notional Stock Exchange.
The company has also declared an interim dividend of 3.50 rupees per share. "The interim dividend declared this quarter, underscores our commitment to maximising shareholder value," PFC Chairman and Managing Director Parminder Chopra said in the note.
The power financier's profit was rose 19.7% to INR 122.43 billion for Apr-Dec as it had a provision rversal of INR 1.71 billion for the cumulative period. Its reveue from operations also rose 13% to INR 381.60 billion in Apr-Dec.
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. End
Edited by Vandana Hingorani
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