Power Finance Corporation’s consolidated net profit for FY24 increased by 25% to Rs 26,461 crore due to increase in assets under management. Profit for the March quarter rose 23% year-on-year to Rs 7,556 crore.
The company’s consolidated loan asset book rose 16% year-on-year to Rs 9.9 trillion in FY24. The standalone loan asset book rose 14% year-on-year to Rs 4.8 trillion, while disbursements rose to Rs 1.3 trillion in FY24 from Rs 85,756 billion in the same period last year.
Among specific segments, renewable energy balance increased by 25% year-on-year to Rs 60.28 billion as on March 31. In the previous fiscal year, the conventional power generation portfolio stood at Rs 1,700 billion and the large hydropower projects portfolio stood at Rs 16,095 billion.
Net interest income, the difference between interest income and interest expense, rose to Rs 15,627 crore in 2023-24 from Rs 14,362 crore a year ago. Net interest margin increased to 3.46% from 3.36% in the same period last year.
The company’s 54EC bond portfolio, or capital gain bonds, grew by 36% to Rs 8,994 crore as on March 31. The consolidated total non-performing assets ratio was 3.02% as of March 31, an improvement from 3.66% in the same period last year.
The company’s stressed asset book has declined from Rs 29,540 crore as on March 31, 2019 to Rs 16,073 crore as on March 31, 2019. Assets worth Rs 2,898 crore are in advanced stages of resolution. These include the Rs 2,376-crore Lanco Amarkantak project and the Rs 522-crore Shiga Energy project.
Major projects such as TRN Energy and Shiga Energy have been settled outside the National Company Law Tribunal.
The outstanding loan amount is 4.1 trillion rupees. Domestic bonds and foreign currency borrowings account for 77% of total borrowings.
The equity to risk assets ratio improved to 25.4% as of March 31 from 24.37% a year ago.
The company’s total dividend for FY24 will be Rs 13.50 per share.
At the post-earnings press conference, Chairman and Managing Director Parminder Chopra said:
The company expects assets under management to grow 12-15% this fiscal year. Net interest margin for the quarter is expected to be 3-3.5%.
On a standalone basis, net profit for 2023-24 rose to Rs 14,367 crore from Rs 11,650 crore a year ago.
PFC Group is India’s largest non-banking financial company (NBFC) group.
