PFC Q4FY23 PAT up 45.9% at Rs4,677 crore on impairment writebacks in the quarter

PFC reported 6.36% growth in net revenues for the March 2023 quarter on consolidated basis at Rs20,074 crore. Revenues were up 2.1% on sequential basis. There was a nearly 10% growth in interest income amidst rising bond yields, but interest costs also kept pace. However, the fee and commission income halved in the quarter. PFC is India’s largest power financing company, which holds 52.6% stake in REC.

In the quarter, there was a writeback of impairment provisions made which boosted the profits by nearly Rs2,000 crore and the forex translation losses were lower by almost 75% yoy. Both these contributed to a sharp spike in the operating profits and the net profits of the company for the March 2023 quarter. Unlike the banks, the lending is regulated so the spreads were not positively impacted by rising rates as in the case of Indian banks.

Financial highlights for Mar-23 compared yoy and sequentially

 Power Finance Corp    

Rs in Crore

Mar-23

Mar-22

YOY

Dec-22

QOQ

Total Income (Rs cr)

₹ 20,074

₹ 18,874

6.36%

₹ 19,663

2.09%

Operating Profit (Rs cr)

₹ 7,762

₹ 5,446

42.53%

₹ 6,619

17.27%

Net Profit (Rs cr)

₹ 4,677

₹ 3,206

45.88%

₹ 3,860

21.15%

 

 

 

 

 

 

Diluted EPS (Rs)

₹ 17.71

₹ 12.14

 

₹ 14.62

 

OPM

38.67%

28.85%

 

33.66%

 

Net Margins

23.30%

16.99%

 

19.63%

 

 

The quarter saw the operating profits of PFC growing 42.5% and the net profits growing 45.9% on the back of lower impairment and lower forex translation losses. The operating margins for the quarter improved from 28.85% to 38.67% while the PAT margins improved from 16.99% to 23.3% on a yoy basis. For the year FY23, PFC declared final dividend of Rs4.50 per share which takes the total dividend for the year FY23 to Rs13.25 per share.

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