Power Finance Corporation Ltd. (PFC), a leading non-banking financial company in the power sector, has reported a robust financial performance for the first quarter, with a significant increase in profit and revenue.

Strong Financial Performance

PFC announced a standalone net profit of Rs 4,501.50 crore for the quarter, marking a substantial 21% increase from Rs 3,717.88 crore in the same quarter last year. This impressive growth in profitability underscores the company's strong financial position and operational efficiency.

The company's total income also saw a notable rise, climbing to Rs 13,776.78 crore from Rs 11,916.24 crore year-on-year, representing a 15.6% increase. This growth was primarily driven by a surge in interest income, which rose to Rs 13,738.89 crore from Rs 11,827.03 crore in the corresponding quarter of the previous year.

Key Financial Highlights

• Interest income grew by 16.2% to Rs 13,738.89 crore
• Finance costs increased to Rs 8,269.73 crore from Rs 7,500.48 crore
• Earnings per share (EPS) stood at Rs 13.64 for the quarter
• Impairment on financial instruments showed a reversal of Rs 681.82 crore, compared to a provision of Rs 62.02 crore in the same quarter of the previous year

Dividend Declaration

In a move that will benefit shareholders, PFC's Board of Directors has declared an interim dividend of Rs 3.70 per equity share (37% of face value). The record date for determining eligibility for the interim dividend has been set as August 18, with the payment to be made by September 5.

Consolidated Performance

On a consolidated basis, PFC reported an even stronger performance:

• Net profit surged to Rs 8,981.45 crore, up from Rs 7,182.06 crore in the same quarter of the previous year
• Total income rose to Rs 28,628.92 crore from Rs 24,736.68 crore
• Consolidated EPS reached Rs 20.81

Improved Asset Quality

The company's asset quality showed improvement, with the Gross Credit Impaired Assets Ratio decreasing to 1.92% from 2.65% as of March 31. The Net Credit Impaired Assets Ratio also improved to 0.38% from 0.52% at the end of the previous fiscal year.

Management Commentary

Sandeep Kumar, Director (Finance) of PFC, commented on the results, stating, "Our Q1 performance demonstrates PFC's resilience and strong fundamentals. The significant growth in profit and revenue, coupled with improved asset quality, reflects our robust business model and effective risk management strategies. We remain committed to supporting India's power sector while delivering value to our shareholders."

Power Finance Corporation's strong Q1 results highlight its pivotal role in financing India's power sector and its ability to generate substantial returns for investors. As the company continues to navigate the evolving energy landscape, its solid financial performance positions it well for sustained growth and value creation.

Power Finance Corporation (PFC), India's leading power sector lender, has reported a robust financial performance for the quarter ended June 30. The company's net profit surged by 25% year-on-year to ₹8,981.45 crore, up from ₹7,182.06 crore in the same period last year. Additionally, PFC reported quarterly revenue from operations of ₹28,539.04 crore, representing a 15.5% year-over-year increase from ₹24,716.76 crore in the same period last year.

Key Financial Highlights

Financial Performance

The significant jump in PFC's profitability and revenue demonstrates the company's strong financial position and effective management of its loan portfolio. The company's performance is particularly noteworthy given the challenging economic environment.

Dividend Announcement

In a move that will benefit shareholders, PFC's Board of Directors has declared an interim dividend of ₹3.70 per equity share.

Balance Sheet Strength

As of the reporting period, PFC's financial position remains solid:

These figures underscore PFC's strong capital base and its ability to support future growth.

Asset Quality

PFC continues to maintain a healthy asset quality:

The low impairment ratios reflect PFC's prudent lending practices and effective risk management strategies.

Other Financial Metrics

Market Response

Following the results announcement, PFC shares traded flat at ₹414.20 on the BSE.

Conclusion

Power Finance Corporation's impressive quarterly results, including the 25% net profit increase and 15.5% revenue growth, highlight its pivotal role in financing India's power sector and its ability to deliver consistent returns to shareholders. As the company continues to navigate the evolving energy landscape, its strong financial foundation positions it well for sustained growth and performance in the coming quarters.