Yahoo Finance

• Consolidated Profit After Tax: INR 14,397 crores, a 14% increase year-on-year.

• Loan Asset Book Growth: 13% year-on-year increase, standing at INR 1,039,472 crores as of September 30, 2024.

• Consolidated Gross NPA: Reduced to 2.62% in H1 FY25 from 3.40% in H1 FY24.

• Consolidated Net NPA Ratio: 0.80% in H1 FY25 compared to 0.98% in H1 FY24.

• Standalone Net Profit for Q2 FY25: INR 4,370 crores, a 14% increase year-on-year.

• Standalone Net Profit for H1 FY25: INR 8,088 crores, an 18% increase year-on-year.

• Net Interest Income for H1 FY25: 21% increase year-on-year, at INR 8,736 crores.

• Yield: Increased to 10.11% in H1 FY25 from 9.92% in H1 FY24.

• Spread: Improved to 2.61% in H1 FY25 from 2.51% in H1 FY24.

• Net Interest Margin (NIM): 3.57% in H1 FY25.

• Cost of Funds: 7.50% within expected range.

• Capital Adequacy Ratio: 24.38%.

• Net Worth: INR 85,924 crores.

• Interim Dividend: INR 3.5 per share, cumulative interim dividend for FY25 at INR 6.75 per share.

• Disbursements for Q2 FY25: INR 46,663 crores.

• Cumulative Disbursements for H1 FY25: INR 66,146 crores.

• Loan Asset Growth: 10% year-on-year increase, with a loan book of INR 8.04 lakh crores.

• Sanctions in H1 FY25: Around INR 160,000 crores worth of projects.

• Warning! GuruFocus has detected 2 Warning Signs with BOM:532810.

Release Date: November 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Power Finance Corp Ltd (BOM:532810) achieved the lowest gross NPA ratio of 2.71% since FY 2019, indicating improved asset quality.

• The company executed the largest ever foreign currency term loan deal by an Indian PSU, amounting to $1.265 billion.

• Consolidated profit after tax increased by 14% year-on-year, reaching INR 14,397 crores for H1 2025.

• The company's loan asset book grew by 13% year-on-year, showcasing robust business growth.

• Power Finance Corp Ltd declared an interim dividend of INR 3.5 per share, reflecting a commitment to shareholder returns.

Negative Points

• Despite strong disbursements, the loan growth was only 10% due to higher repayments, particularly in the renewable and distribution sectors.

• The company faced challenges in asset resolution, with some recoveries remaining unallocated pending final NCLT orders.

• There is a cautious approach towards new infrastructure projects, with the board deciding against sanctioning certain loans.

• The company's growth projections are considered conservative by some analysts, potentially underestimating market opportunities.

• The capital adequacy ratio decreased from 27% to 24.38%, indicating a need for careful capital management amidst growth.