Q1 Highlights: PFC’s Net Profit Surges 24% to ₹3,718 Crore

Power Finance Corporation (PFC) on Tuesday reported a nearly 24 per cent rise in consolidated net profit at Rs 3,718 crore for the April-June quarter of 2024-25. The company reported a profit of Rs 3,006.9 crore in the corresponding period last year.

The company’s net interest income (NII), the difference between interest earned and interest expended, rose 23.5 per cent to Rs 4,328 crore for the quarter. The same was Rs 3,503.3 crore in the year-ago quarter. PFC has declared an interim dividend of Rs 3.25 per equity share on the face value of the paid-up equity shares of ₹10 each for the financial year 2024-25.

Record date for the purpose of ascertaining the eligibility of shareholders for the payment of the interim dividend has been fixed as August 30, 2024.

The date of payment of the said dividend will be on or before September 5, 2024.

On PFC’s performance, Director (Finance), Sandeep Kumar said, ‘PFC continued to deliver healthy profits quarter on quarter. Our net profit increased by 24 per cent year-on-year to Rs. 3,718 crore, driven by a strong 24 per cent growth in Net Interest Income. Further, PFC’s financial position remains strong, with a net worth of Rs. 83,265 crore and a comfortable capital adequacy ratio of 27% providing a solid foundation for future growth of the Company.’

Consolidated Financial Highlights

• 20% increase registered in consolidated Profit After Tax from Rs. 5,982 cr. in Q1’24 to Rs. 7,182 cr. for Q1’25.
• Consolidated Loan Asset Book crosses 10 lakh crores mark and stands at Rs.10,04,735 cr. as on 30.06.2024 vs. Rs.8,86,723 as on 30.06.2023.
• Consolidated Net worth (including non-controlling interest) increased by 20% from Rs. 1,18,367 cr. as on 30.06.2023 to Rs. 1,41,940 cr. as on 30.06.2024
• Owing to concentrated resolution efforts, consolidated Gross NPA has reached below 3% and is at 2.97% in Q1’25 from 3.54% in Q1’24.
• Consolidated Net NPA also declined significantly by 16 bps from 1% in Q1’24 to 0.84% in Q1’25.

Stand Alone Financial Highlights

• 24% increase registered in Standalone Profit After Tax from Rs. 3,007 cr. in Q1’24 to Rs. 3,718 cr. for Q1’25.
• Interim Dividend of Rs. 3.25 per share declared by Board in Q1’25.
• 10% growth witnessed in loan asset book- from Rs. 4,32,339 cr. as on 30.06.2023 to Rs.4,75,007 cr. as on 30.06.2024.
• PFC continues to maintain comfortable capital adequacy levels. CRAR as on 30th June,2024 is at 27.10%, with Tier 1 capital at 24.86%.
• PFC’s net worth has surpassed the Rs. 80,000 crore mark and now stands at Rs. 83,265 cr. as on 30.06.2024, an increase of 17% from 30.06.2023.
• No new NPA added in more than a year. The Gross NPA ratio saw a significant reduction of 44 bps viz-a-viz Q1’24 and is at 3.38% for Q1’25.
• The Net NPA ratio is at 0.87% for Q1’25 vs 1.04% for Q1’24, decrease of 17 bps.