PFC reports 25% rise in FY24 net profit to ₹26,461 crore
- PFC has diversified into newer areas, including financing infrastructure and airports, while boosting both thermal and renewable energy power sectors.
State-run Power Finance Corp (PFC) on Wednesday reported a 25% increase in net profit for FY24 to ₹26,461 crore from ₹21,179 crore in FY23.
PFC's balance sheet crossed ₹10 trillion in FY24, coming in at ₹10.39 trillion. Its net NPA reached its lowest level at 0.85% in the fiscal year, down from 1.03% in FY23.
During the fourth quarter (January-March) of FY24, consolidated net profit rose 23.29% to ₹7,556.43 crore from ₹6,128.63 crore a year ago. The company reported revenue from operations of ₹24,141.40 crore, a 20.34% increase year-on-year.
Read this: PFC pays ₹2,033 cr interim dividend to Centre for FY24
PFC chairperson and managing director Parminder Chopra said the strong results were backed by a 14% growth in the loan portfolio while maintaining strong asset quality. Strong growth in renewable loan book (25% year-on year) and discoms led to overall loan growth in FY24.
PFC's loan book stood at ₹4.8 lakh crore at the end of FY24. "We expect to maintain the same level of growth of 12-15% year on year. We will continue to focus on lending to discom and renewables this year as well," she added.
The board of PFC also declared a final dividend of ₹2.50 a share. With this, the total dividend for FY24 stands at ₹13.50 a share.
Speaking on the new RBI draft rules on financing project, which include a 5% provisioning against these assets, Chopra said PFC was unlikely to see any impact on loan growth or capital.
"We are examining the guidelines in detail. On profitability we are not going to have any impact. Any impairment reserve will have an impact on capital adequacy, which is comfortable at 25%. So we don't see any major impact," she said.
Asset quality improved with gross non-performing assets at 3.34% at the end of FY24 compared to 3.91% the previous year. Net non-performing assets stood at 0.85% in FY24 compared to 1.07% in FY23.
Chopra said of the 21 stressed projects, two projects worth ₹2900 crore are in advanced stages of resolution. With this, she expects gross NPA to fall below 3%.
Looking ahead, PFC sees growth opportunities in both the power and infrastructure sectors. The company has diversified into new areas, including financing infrastructure and airports, while boosting its presence in both the thermal power and renewable-energy sectors.
"PFC is building out expertise in infrastructure financing. We have disbursed infrastructure loans worth ₹7,000 crore as of the end of FY24 and expect to be a mega player in this space," she said.
She added, "Our renewable loan portfolio grew 25% year-on-year to over ₹60,000 crore, solidifying our position as the leading renewable lender in India."
In February, PFC signed a memorandum of understanding (MoU) with the Goa government to fund the state’s green energy ambitions through a blended finance facility.
Under the MoU, PFC will provide financial support for Goa’s pivotal climate-related projects, including renewable energy, green hydrogen, electric vehicles, and converting waste to wealth.
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First Published:15 May 2024, 03:08 PM IST
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