Board of Power Finance Corporation (PFC), on Tuesday, gave its approval for raising around Rs 80,000 crores from domestic and foreign currency borrowings including bonds, term loans, and commercial paper, for the fiscal year 2023–24.
The break up of the sources was discussed in the meeting and it is long-term domestic borrowing of ₹40,000 crores, long-term foreign currency borrowing/Rupee denominated foreign currency borrowings through the ECB of ₹20,000 crores, short-term borrowing of ₹10,000 crores and commercial paper of ₹10,000 crores.
The company’s stock opened its trading session today at Rs 154.50 and is currently trading at Rs 154.55. The stock is up around 0.26 percent as compared to the previous closing price of Rs 154.15. In a span of one month, the stock has seen a gain of about 5.50 percent and moving even ahead with a purview of a year, the stock has been able to deliver a return of 32.5 percent to its stakeholders.
Power Finance Corporation is an NBFC registered with the RBI as an Infrastructure Finance Company. The company is engaged in the operations of extending financial assistance to the Indian power sector.
The company finances infrastructure projects in the Indian Power sector. Some of its products include fund-based products (Project Term loans, Lease financing for the purchase of equipment, Short/Medium Term loans to equipment manufacturers, etc.) and non-fund based products (Deferred payment guarantee, Letter of Comfort (LoC), etc).
Having a quick glance at the financials the company represents, it can be observed that the revenues as well as net profits witnessed an upward trend. Revenues moved from Rs 18,532.25 crores in Q2 to Rs 19,336.05 crores in Q3. Net profits, in congruence with the pattern showed by revenues, have gone up from Rs 4,579.53 crores in Q2 to Rs 5,229.33 crores in Q3.
The profitability has somewhat remained at the same levels with some marginal reductions. ROE moved from 28.52 percent in FY20-21 to 28.38 percent in FY21-22. Apart from the same, ROCE figures shifted from 9.46 percent in FY20-21 to 9.39 percent in FY21-22.
The debt to equity ratio of the company has consistently gone down over the past 3 financial years with the recent shift being a reduction from 10.85 in FY20-21 to 9.21 in FY21-22.
As per the recent quarter ending December 2022, promoters held their holdings constant at 55.99 percent. FIIs have slightly increased their stake from 16.82 percent in Q2 to 16.85 percent in Q3.
Written by Amit Madnani
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