Earnings Review
PFC beats estimate on rise in NII, impairment write-back
This story was originally published at 15:50 IST on 6 August 2025
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--PFC interim dividend record date is Aug 18
--PFC to pay INR 3.70 per share interim dividend
--PFC Apr-Jun revenue INR 137.73 bln vs INR 119.10 bln year ago
--PFC Apr-Jun net profit INR 45.02 bln vs INR 37.18 bln year ago
By Sagar Sen and Rati Chaphekar
NEW DELHI/MUMBAI – State-owned Power Finance Corp. beat Street view in terms of its net profit for the June quarter as the lender's net interest income improved significantly. A write-back on account of impairment on financial instruments also helped the bottom line of power sector lender.
The Delhi-based lender posted a net profit of INR 45.02 billion for the reporting quarter, up nearly 21% on year and above the range of INR 39.44 billion to INR 44.25 billion estimate given by three brokerages. The finance cost increased by 10% on year to INR 82.70 billion. During the reporting period, there was a write-back of INR 6.82 billion on provision for impairment of financial instruments.
Total interest income of the company was INR 137.39 billion, up 16% on year. The company posted total revenue from operations that includes interest income, dividend income, and fees and commissions income at INR 137.73 billion, down 7.8% on quarter but up 15.6% on year.
Power Finance posted a net gain of INR 1.63 billion on account of fair value change in the reporting quarter, down from the gain of INR 2.27 billion in the year-ago quarter. The lender's net translation/transaction exchange loss was INR 6.55 billion against a net gain of INR 588.7 million in the year-ago quarter.
The Delhi-based lender reported a fall in its other expenses to INR 240.3 million, down 14.7% on year. The lender's total loans outstanding are INR 5.5 trillion, up marginally from the trailing quarter. The company will pay an interim dividend of INR 3.70 per share and the record date for the same is Aug. 18.
Power Finance shares ended 0.5% higher at INR 415.75 on the National Stock Exchange. End
Edited by Subhojit Sarkar
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