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Results
15-May-24
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Analysis
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Power Finance Corporation
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Margins and asset quality improves, loan growth at 14%
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Power
Finance Corporation has reported 18% growth in the net profit to Rs 4135.45
crore in the quarter ended March 2024 (Q4FY2024). Net Interest Income (NII) of
the company surged 22% to Rs 4238 crore, while the company has exhibited further
improvement in the asset quality in Q4FY2024.
The
company has showed slight improvement in Net Interest Margin (NIM) to 3.46% in
Q4FY2024 from 3.42% in the preceding quarter. The interest spreads of the
company improved to 2.64% in Q4FY2024 from 2.55% in the preceding quarter and
2.53% in the corresponding quarter last year.
Quarterly
performance
The
company has posted 20% increase in Income from operations at Rs 11493.73 crore
in the quarter ended March 2024. Other income improved 33% to Rs 755.37 crore.
Total income increased 20% to Rs 12249.10 crore in the quarter ended March
2024. The interest expense moved up 18% to Rs 7256.44 crore.
The
employee expenses rose 9% to Rs 57.61 crore, while the other expenditures jumped
23% to Rs 246.39 crore in the quarter ended March 2024.
The
ensuing Gross Profit stood at Rs 4688.66 crore in the quarter ended March 2024,
showing an increase of 24% on yoy basis.
The
depreciation during the quarter under review stood at Rs 5.71 crore up slightly
from Rs 5.18 crore in Q4FY2023.
The
Profit before Tax increased 17% to Rs 5019.97 crore in the quarter ended March
2024. An effective tax rate was lower at 17.6% in Q4FY2024 compared with 18.4%
in Q4FY2023. PAT increased 18% to Rs 4135.45 crore in Q4FY2024 over Q4FY2023.
Highlights:
Loan
assets of the company increased 14% to Rs 481462 crore at end March 2024
compared to Rs 422498 crore at end March 2023. Within the loan book, the generation
loan book moved up 2% to Rs 232131 crore, while transmission
loan book moved up 13% to Rs 35144 crore and distribution
jumped 23% to Rs 195002 crore at end March 2024. As
per the borrower segment wise classification, the private sector loan book rose
26% to Rs 91936 crore, while the government
sector loan book jumped 11% to Rs 389526 crore end
March 2024.
Disbursement
of the company (excluding R-APDRP) surged 25% to Rs 48607 crore in Q4FY2024
compared to Rs 38788 crore in Q4FY2023, as the distribution disbursements
jumped 47% to Rs 26586 crore and others zoomed 211%
to Rs 8565 crore in Q4FY2024. However, the generation disbursement
declined 29% to Rs 10611 crore and transmission
disbursements fell 5% to Rs 2845 crore. As per
the borrower segment wise classification, the private sector disbursements
declined 18% to Rs 10351 crore, while the
government sector disbursements increased 47% to Rs
38256 crore in Q4FY2024.
Outstanding
Borrowings increased by 12% to Rs 407382 crore at end March 2024, driven by
bonds borrowing rising 13% to Rs 326018 crore at end March 2024. Term loans increased
13% to Rs 79003 crore, while short-term loans declined 41% to Rs 2361 crore at
end March 2024.
NIM
of the company rose 10 bps yoy to 3.46% in Q4FY2024. The yield on assets eased 3
bps to 10.01%, while cost of funds dipped 14 bps yoy to 7.37%.
The gross stage
3 asset declined to 3.34% end March 2024 from 3.52% a quarter ago, which
entirely related to private sector exposure. Net stage 3 asset also declined to
0.85% end March 2024 from 0.90% a quarter ago.
Capital
Adequacy Ratio stood at 25.41% at end March 2024 compared to 24.37% a year
earlier.
Book
value of the company stood at Rs 240.00 per share at end March 2024. Adjusted
Book value (net of net stage 3 assets) stood at Rs 227.55 per share at end
March 2024.
Financial
Performance FY2024
For
the year ended March 2024 (FY2024), Power Finance Corporation reported 16%
increase in Income from Operations at Rs 43641.14 crore, while interest expense
increased 20% to Rs 28013.78 crore, leading to a 9% rise in NII to Rs 15627.36
crore.
Other
income increased 18% to Rs 2392.96 crore. The Staff cost rose 12% to Rs 185.11
crore, while the other expenditure dipped 97% to Rs 58.27 crore. The ensuing
Gross Profit moved up 26% to Rs 17472.94 crore in FY2024.
The
Depreciation stood at Rs 18.40 crore, while provisions were written back
amounting to Rs 171.15 crore in FY2024. The profit before Tax increased 24% to
Rs 17625.69 crore in FY2024. The Tax expense increased 27% to Rs 3258.67 crore.
PAT improved 24% to Rs 14367.02 crore in FY2024.
Power Finance Corporations: Standalone Results
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Particulars
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Income
from operations
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11493.73
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9616.68
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20
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43641.14
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37645.31
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16
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Other
Income
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755.37
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569.55
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33
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2392.96
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2020.32
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18
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Total
Income
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12249.10
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10186.23
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20
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46034.10
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39665.63
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16
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Interest
Expenses
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7256.44
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6140.71
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18
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28013.78
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23282.57
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20
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Other
expenses
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304.00
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253.33
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20
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547.38
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2489.59
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-78
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Gross
profit
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4688.66
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3792.19
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24
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17472.94
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13893.47
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26
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Depreciation
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5.71
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5.18
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10
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18.40
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19.06
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-3
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Provisions
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-337.02
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-494.20
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-32
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-171.15
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-296.21
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-42
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Profit
before tax
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5019.97
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4281.21
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17
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17625.69
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14170.62
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24
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Provision
for tax
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884.52
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788.94
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12
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3258.67
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2565.15
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27
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Net
profit
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4135.45
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3492.27
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18
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14367.02
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11605.47
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24
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EPS*(Rs)
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50.1
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42.3
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43.5
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35.2
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Adj BV
(Rs)
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227.5
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193.0
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227.5
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193.0
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* Annualized on current equity of Rs 3300.1 crore. Face Value: Rs 10,
figures in Rs Crore
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Source: Capitaline Corporate Database
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