Power Finance Corporation (PFC), a leading player in the Indian power sector financing, has announced important updates regarding its dividend and financial performance.

Dividend Announcement

PFC has recommended a final dividend of Rs 2.05 per equity share for the fiscal year 2025, subject to shareholder approval. The company has set June 13 as the record date for this dividend. This means that investors who wish to be eligible for the dividend must ensure they are shareholders of PFC by the end of the trading day prior to the record date.

Strong Financial Performance

The company's financial results for the fourth quarter have shown impressive growth:

These robust financial figures underscore PFC's strong position in the power financing sector and its ability to generate substantial returns for shareholders.

Investor Implications

Investors interested in receiving the dividend should take note of the following:

1. The last day to buy PFC shares to be eligible for the dividend is typically one working day before the record date.
2. Those who purchase shares on or after the ex-dividend date will not be eligible for this dividend payout.

The recommended dividend of Rs 2.05 per share, subject to shareholder approval, reflects PFC's commitment to delivering value to its investors. This comes on the back of the company's strong financial performance, as evidenced by the significant growth in both net profit and total income.

Power Finance Corporation continues to play a crucial role in funding various segments of the power sector, contributing to India's energy infrastructure development. The company's ability to maintain growth and profitability in a challenging economic environment speaks to its robust business model and strategic positioning in the sector.

Power Finance Corporation (PFC), a leading non-banking financial company in the power sector, has reported a robust performance for the fourth quarter. The company's profit after tax (PAT) soared to Rs 5,109.00 crore, marking a significant 24% year-on-year increase and surpassing market estimates by 17%.

Key Highlights

• Q4 PAT: Rs 5,109.00 crore (up 24% YoY)
• Full-year PAT: Rs 17,350.00 crore (up 20% YoY)
• Earnings beat primarily due to Rs 1,200.00 crore interest income write-back from KSK Mahanadi resolution

Financial Performance

PFC's strong quarterly results were primarily driven by an interest income write-back of Rs 1,200.00 crore from the KSK Mahanadi resolution. This unexpected boost significantly contributed to the company's performance, helping it exceed market expectations.

The company's revenue for the quarter stood at Rs 14,943.70 crore, representing a 22% increase compared to the same quarter in the previous year. This growth in revenue indicates PFC's ability to capitalize on opportunities in the power financing sector.

Profitability Metrics

PFC's profitability metrics for the quarter show impressive growth:

The company's operating profit margin (OPM) for the quarter stood at 93.14%, reflecting its operational efficiency despite a slight decrease from the previous year.

Annual Performance

For the full fiscal year, PFC reported a PAT of Rs 17,350.00 crore, marking a 20% increase from the previous year. This annual growth underscores the company's consistent performance and its strong position in the power financing sector.

Operational Efficiency

PFC's ability to maintain a high operating profit margin demonstrates its efficient cost management and robust business model. The company's interest expenses for the quarter were Rs 7,810.90 crore, showing a modest increase of 7.62% compared to the same quarter in the previous year, indicating effective management of borrowing costs.

Conclusion

Power Finance Corporation's exceptional quarterly and annual results highlight its strong financial health and operational efficiency. The significant boost from the interest income write-back, coupled with consistent growth in core operations, positions PFC well for continued success in the power financing sector. Investors and stakeholders will likely view these results positively, as they reflect the company's resilience and ability to capitalize on resolution opportunities while maintaining steady growth in its primary business activities.