Power Finance Corporation Q4 result: Net profit up 23% at Rs 7,556 cr

The company is expected to borrow around Rs 1 trillion to 1.20 trillion in the financial year

Power Finance Corporation (PFC) on Wednesday reported a consolidated net profit of Rs 7,556 crore for the March quarter of the financial year 2023-24 (FY24), marking an over 23 per cent year-on-year (Y-o-Y) jump, mainly on the back of expansion of loan portfolio.

The asset quality of the company improved during the quarter as the net non-performing assets (NPAs) fell to 0.85 per cent and gross NPA dropped to 3.34 per cent, from 0.9 per cent and 3.52 per cent, respectively in the December quarter.

Parminder Chopra, Chairperson and MD of PFC said the company had added zero NPA during the financial year, and remained the largest non-banking financial company (NBFC) group in India, with a total balance sheet size exceeding Rs 10 trillion in FY24.

During the financial year, the loan portfolio of the company expanded by 14 per cent. Chopra said she expected the loan book to expand by 12 per cent to 15 per cent in the financial year 2024-25 (FY25).

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The company is expected to borrow around Rs 1 trillion to 1.20 trillion in FY25 against around Rs 1 trillion in FY24.

“We are expecting a growth in loan book between 12 per cent to 15 per cent. On the borrowing side, we borrowed approximately 1 trillion last year, to maintain the growth, we might increase the borrowing to 1 trillion to 1.20 trillion,” she said.

Net Interest Income (NII) for the quarter was Rs 4,237 crore, up 22 per cent from the same period last year. Revenue for the quarter rose by 20 per cent year-on-year to reach Rs 12,243 crore.

The profitability remains unaffected by the recent draft guidelines on infrastructure project financing, the company said, adding that it has ample capital adequacy to mitigate any potential impact should the provisions be implemented.