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Power Finance Corporation Delivers Record-Breaking Q2/H1’25 Results

8th November, 2024: New Delhi, India** – Power Finance Corporation (PFC), a leading player in India’s financial sector, has reported outstanding results for the second quarter (Q2) and first half (H1) of the financial year 2025, underscoring its commitment to robust growth and stakeholder value. The company’s consolidated financial highlights reveal impressive gains across critical financial metrics, showcasing the impact of strategic planning and strong resolution efforts.

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In a significant leap, PFC’s consolidated Profit After Tax (PAT) surged by 14% from Rs. 12,610 crore in H1’24 to Rs. 14,397 crore in H1’25. Reflecting solid asset growth, PFC’s consolidated net worth also saw a 17% rise, reaching Rs. 1,45,158 crore as of September 30, 2024, up from Rs. 1,23,703 crore a year earlier. The consolidated Loan Asset Book grew by 13%, expanding from Rs. 9,23,724 crore in the previous year to Rs. 10,39,472 crore as of the latest quarter, indicating robust demand and effective loan disbursement strategies.

Noteworthy is the company’s concerted effort to reduce its Non-Performing Assets (NPA). The consolidated Net NPA dropped to an all-time low of 0.80% in H1’25, down from 0.98% in H1’24, while Gross NPA fell by 78 basis points, reaching 2.62%, a substantial improvement from 3.40% in the previous year.

Stand-Alone Financial Highlights

In standalone performance, PFC achieved its highest-ever quarterly PAT of Rs. 4,370 crore in Q2’25, a 14% year-on-year growth compared to Q2’24. Cumulatively, PFC’s PAT for H1’25 reached Rs. 8,088 crore, marking an 18% increase from Rs. 6,854 crore in H1’24. Reflecting its commitment to delivering shareholder value, PFC’s Board declared an interim dividend of Rs. 3.50 per share, bringing the cumulative interim dividend for the year to Rs. 6.75 per share.

The standalone loan asset book showed a steady 10% rise, reaching Rs. 4,93,363 crore as of September 30, 2024, from Rs. 4,49,458 crore a year prior. Capital adequacy also remained strong, with a Capital to Risk-Weighted Assets Ratio (CRAR) of 24.38% and Tier 1 capital at 22.29%.

Highlighting PFC’s expanding international footprint, the company recently closed a milestone foreign currency term loan deal worth USD 1.265 billion, the largest-ever foreign loan secured by an Indian PSU, underscoring its commitment to diversifying its capital sources. Additionally, PFC achieved a critical resolution in the Lanco Amarkantak Power Ltd. case, securing Rs. 2,376 crore, a testament to the company’s focused resolution strategies.

Executive Insights and Stakeholder Commitment

Reflecting on the results, Mr. Sandeep Kumar, Director (Finance), emphasized PFC’s unwavering dedication to financial excellence and efficient asset management. “This quarter’s results are a testament to our strategic approach and strong operational efficiency, as demonstrated by our record-breaking quarterly PAT and significant reduction in Net NPA levels,” he said.

PFC’s Chairman and Managing Director, Ms. Parminder Chopra, lauded the quarter’s strong performance, citing robust disbursements totaling Rs. 46,663 crore and the launch of new lending operations by PFC Infra Finance IFSC Ltd. in Gujarat’s IFSC GIFT City. “Our achievements this quarter reinforce our commitment to maximizing returns for shareholders and driving long-term growth through focused and strategic initiatives,” Ms. Chopra remarked.

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With support from key stakeholders, including PFC Infra Finance IFSC Ltd., Lanco Amarkantak Power Ltd., and international financial partners, PFC is positioned to lead India’s financial sector and continue delivering significant shareholder value in the coming quarters.

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