One of the Maharatna Power stocks engaged in extending financial assistance to the Indian power sector. The stock has jumped by 8.49 percent after reporting its quarterly results for September 2024. The company’s revenue from operations increased by 14.96% to Rs. 25,721.79 crore, net interest income increased by 20.69% to Rs. 9,392 crore, and net profit increased by 8.85% to Rs. 7,214.90 crore. The company also improved its gross NPA and net NPA
Stock movement
In Monday’s trading session, Power Finance Corporation Limited’s (PFC) share jumped by 8.49 percent from the previous close of Rs. 449.45. The stock opened at Rs. 452.05 and is currently trading at Rs. 487, with a high of Rs. 489.10 and a low of Rs. 452.05. The market capitalization now stands at approximately Rs. 1,60,714.96 crore
Q2 FY25 Result Walkthrough
Power Finance Corporation Limited’s recent quarter saw a rise in revenue and net profits, which led to this bullish movement in the stock price. According to its recent filing, in the quarter ending September 2024, Power Finance Corporation Limited’s consolidated revenue from operations has increased by 14.96 percent YOY, from Rs. 22,374.63 crore in Q2 FY24 to Rs. 25,721.79 crore in Q2 FY25, and up by 4.06 percent QoQ from Rs. 24,736.76 crore in Q1 FY25.
PFC Limited’s revenue mainly comes from interest income of Rs. 25,398.22 crore, dividend income of Rs. 22.48 crore, fees and commission income of Rs. 97.76 crore, and other operating income of Rs. 203.33 crore in Q2 FY25
PFC Limited’s net interest income has increased by 20.69, from Rs. 7,782 crore in Q2 FY24 to Rs. 9,392 crore in Q2 FY25. The company increased its consolidated loan asset book from Rs. 9,23,724 crore in Q2 FY24 to Rs. 10,39,472 crore in Q2 FY25.
Power Finance Corporation Limited’s consolidated net profit has increased by 8.85 percent YOY, from Rs. 6,628.17 crore in Q2 FY24 to Rs. 7,214.90 crore in Q2 FY25. As compared to the last quarters, the company’s net profit is slightly up by 0.45 percent QoQ from Rs. 7,182.06 crore. The company’s EPS has increased by 9.69 percent from Rs. 14.65 in Q1 FY24 to Rs. 16.07 in Q2 FY25.
Power Finance Corporation Limited’s gross NPA has reduced from 3.40 percent in H1 FY24 to 2.62 percent in H1 FY25. In terms of net NPA, the company has reduced from 0.98 percent in H1 FY24 to 0.80 percent in H1 FY25.
Dividend: The PFC Limited board of directors has decided to pay the second interim dividend at the rate of 35% on the face value of paid-up equity shares of Rs. 10 each for the financial year 2024-25, which is a dividend of Rs. 3.50 per equity share. The date of payment of the dividend shall be before 8th December 2024 and the record date will be 25th November 2024.
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Company Overview
Power Finance Corporation Limited (PFC) was established in 1986 and is a prominent non-banking financial company in India, primarily focused on the power sector. PFC provides a wide range of financial products, including project term loans, lease financing, and corporate loans. The company supports various power projects through funding mechanisms such as debt refinancing and credit facilities for power purchases.
In addition to fund-based products, PFC offers non-fund-based services like deferred payment guarantees and letters of comfort. The company also engages in consultancy services related to financial and regulatory matters. With subsidiaries like REC Limited, PFC plays a crucial role in enhancing the financial landscape of the energy sector in India, driving sustainable growth and development.
Written By – Nikhil Naik
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