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

Power Finance Corporation (PFC) reported a consolidated net profit of Rs 7,556 crore in the January-March quarter of the financial year 2023-24, marking an increase of over 23 per cent compared to the same period in the preceding financial year, mainly due to the expansion of the 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 fell to 3.34 per cent, from 0.9 per cent and 3.52 per cent respectively in the December quarter.

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

The company is expected to borrow around Rs 1 trillion to 1.20 trillion in the financial year, against around Rs 1 trillion in the financial year 2023-24.

“We are expecting a growth in the 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 at Rs 4,237 crore, up 22 per cent increase 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 company said that the profitability remains unaffected by the recent draft guidelines on infrastructure project financing. They said that the company has ample capital adequacy to mitigate any potential impact should the provisions be implemented.

First Published: May 15 2024 | 6:53 PM IST