Power Finance Corporation share price declined to Rs 362 during early trades but recovery was witnessed during the afternoon trade. Markets recovered from lows and at one time NSE Nifty was trading positive. However, towards the end of the trade, markets were down marginally. We could see recovery in the coming sessions. PFC was marginally positive by the end of the trading session. The public sector enterprise posted positive results and we can expect strong performance once the market sentiment improves.

Power Finance Corporation (PFC) reported a substantial increase in profitability for the third quarter of FY25. The company’s consolidated net profit surged by 23% year-over-year (YoY), reaching Rs 7,759.56 crore, supported by robust revenue growth. Additionally, PFC declared its third interim dividend for the fiscal year, reinforcing its commitment to shareholders. The firm’s strategic efforts in reducing non-performing assets and expanding its renewable energy portfolio have solidified its position as India's largest renewable energy lender.

Strong Financial Performance in Q3 FY25

Surge in Net Profit and Revenue Growth
PFC delivered an impressive financial performance in the December quarter, driven by increased revenues and strategic financial management.

Consolidated Net Profit: Grew 23% YoY to Rs 7,759.56 crore, up from Rs 6,294.44 crore in the corresponding quarter last year.
Total Income: Rose to Rs 26,821.84 crore, reflecting 9% growth compared to Rs 23,593.40 crore in Q3 FY24.
Consolidated Profit After Tax (PAT): Over the first nine months of FY25 (April-December), PAT increased by 17% YoY, reaching Rs 22,157 crore from Rs 18,905 crore in 9M FY24.
The company's consistent revenue expansion and focus on maintaining a strong loan portfolio have contributed to sustained profitability and shareholder value.

Dividend Announcement and Shareholder Value

The board of PFC has declared a third interim dividend to reward its shareholders.

Dividend Amount: Rs 3.50 per equity share
Face Value of Shares: Rs 10 each
Record Date: February 28, 2025
Payment Date: On or before March 11, 2025
This move highlights PFC’s strong cash flows and confidence in future earnings, making it an attractive stock for dividend-seeking investors.

Strengthening Financial Position

Increase in Net Worth and Loan Book Expansion
PFC has demonstrated consistent growth in its financial strength, with key metrics improving significantly over the past year.

Consolidated Net Worth: Grew 16% YoY to Rs 1,51,338 crore (as of December 31, 2024) from Rs 1,27,841 crore in December 2023.
Consolidated Loan Asset Book: Expanded by 12% YoY, reaching Rs 10,69,436 crore, compared to Rs 9,54,483 crore in the previous year.
This robust growth in net worth and loan book indicates PFC's ability to expand lending activities while maintaining financial discipline.

Reduction in Non-Performing Assets (NPAs)

PFC has made significant progress in improving asset quality, with a sharp decline in gross and net non-performing assets (NPAs).

Net NPA: Declined to 0.73% in 9M FY25, down from 0.86% in 9M FY24.
Gross NPA: Dropped by 83 basis points (bps) to 2.30%, compared to 3.13% in the previous year.
This improvement in asset quality reflects effective risk management and resolution efforts, positioning PFC as a strong and stable financial entity.

Growing Focus on Renewable Energy Financing

PFC has been aggressively expanding its renewable energy financing portfolio, reinforcing its role as India’s largest renewable energy lender.

Renewable Energy Loan Growth: Increased by 28% YoY, reflecting strong demand for sustainable energy projects.
Chairman and Managing Director Parminder Chopra emphasized that PFC's renewable portfolio expansion aligns with India's clean energy goals, making it a key financial player in the transition towards sustainability.