Power Finance (PFC) Q1 24/25 earnings summary

Executive summary

• Consolidated profit after tax for Q1 FY25 reached INR 7,182 crore, up 20% year-over-year, the highest among Indian NBFCs.

• Group loan asset book grew 13% year-over-year, surpassing INR 10 lakh crore as of June 30, 2024.

• Standalone net profit for Q1 FY25 was INR 3,718 crore, a 24% increase year-over-year.

• Transformation strategy initiated with BCG to realign lending and build infrastructure capacity.

• Released first ESG report in July 2024, emphasizing sustainability and governance.

Financial highlights

• Net interest income rose 25.24% year-over-year in Q1 FY25, with consolidated NII at Rs. 9,007 crore.

• Yield for Q1 FY25 was 10.08%, spread at 2.64%, and NIM at 3.55%.

• Standalone net worth grew 17% year-over-year to Rs. 83,265 crore.

• Disbursements for Q1 FY25 were INR 19,483 crore, similar to previous Q1.

• Interim dividend of INR 3.25 per share declared for Q1 FY25.

Outlook and guidance

• Loan growth target for FY25 remains unchanged at 14%.

• Management expects to maintain margins in the 3.25%-3.5% range.

• Distribution sector expected to play a major role in disbursements, with renewables also a focus.

• Infrastructure lending share to grow gradually, aiming for 30% of the loan book over 3-4 years.

• Management highlights robust asset quality and continued focus on sustainable growth.