The consolidated net profit of Power Finance Corporation rose 25% to Rs 26,461 crore in FY24, aided by a growth in its assets under management. For the March quarter, the profit rose 23% y-o-y to Rs 7,556 crore in the March quarter.
The consolidated loan asset book of the company rose 16% y-o-y to Rs 9.9 trillion in FY24. The standalone loan asset book rose 14% y-o-y to Rs 4.8 trillion while the disbursements rose to Rs 1.3 trillion in FY24 from Rs 85,756 crore a year ago in FY23.
Among specific segments, the renewable book rose 25% y-o-y to Rs 60,208 crore as on March 31. The conventional generation portfolio stood at Rs 1.7 trillion, and large hydro projects portfolio stood at Rs 16,095 crore during the last fiscal.
The net interest income, which is the difference between interest earned and interest expended rose to Rs 15,627 in 2023-24 from Rs 14,362 crore a year ago. The net interest margin rose to 3.46% from 3.36% a year ago.
The company’s 54EC bonds portfolio, or capital gain bond rose 36% to Rs 8,994 crore as on March 31. The consolidated gross non-performing asset ratio improved to 3.02% as on March 31 from 3.66% a year ago.
The company’s stressed asset book fell to Rs 16,073 crore as on March 31 from Rs 29,540 crore as on March 31, 2019. Assets worth Rs 2,898 crore are in the advance stage of resolution. This includes the Lanco Amarkantak project of Rs 2,376 crore and Shiga Energy project of Rs 522 crore.
Major projects like TRN Energy and Shiga Energy are being resolved outside the National Company Law Tribunal.
The outstanding borrowings stand at Rs 4.1 trillion. Domestic bonds and foreign currency borrowings comprise 77% of total borrowings.
The capital-to-risky asset ratio improved to 25.4% as on March 31 from 24.37% a year ago.
The company’s total dividend for FY24 is Rs 13.50 per share.
In the press conference following the results, chairman and managing director Parminder Chopra said that the RBI draft norms on project financing will not have an impact on the company’s profitability and 25% of the company’s loans are for projects under implementation. Out of these 25%, 45% of the projects are under generation with a longer tenor.
For the current financial year, the company expects assets under management to grow between 12-15%. Net interest margin for the quarter is expected to be between 3-3.5%.
On a standalone basis, the net profit rose to Rs 14,367 crore in 2023-24 from Rs 11,605 crore a year ago.
PFC group is the largest non-banking financial company (NBFC) group in India with total balance sheet size of more than Rs 10 trillion in 2023-24.