Shares of this large-cap company jumped around 5 percent in Wednesday’s trading session after reporting an increase in net profits by 23 percent YoY. In one year, the shares have delivered a multibagger return of 218 percent to its shareholders. 

With a market capitalization of Rs. 1,44,232 crores, the shares of Power Finance Corporation Ltd started Wednesday’s trading session on a higher note at Rs. 423.60 compared to its previous close of Rs. 421.60. During the trading session, the shares hit a high of Rs. 441.40, gaining around 5 percent and closed the day at Rs. 436 apiece. 

Such a positive movement in the share price was observed after the company announced quarterly and financial year ended 31st March 2024 results. Quarterly, the revenue increased marginally by 2.4 percent from Rs. 23,571.83 crores during the December quarter to Rs. 24,141.40 crores in the March quarter. In addition, the net profits zoomed by 20 percent from Rs. 6,294.44 crores to Rs. 7,556.43 crores during the same period. 

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Comparing these metrics on a YoY basis, the revenue increased by 20 percent from Rs. 20,060.86 crores during Q4FY23 to Rs. 24,141.40 crores in Q4FY24. On the other hand, the net profits surged by 23 percent from Rs. 6,128.63 crores to Rs. 7,556.43 crores during the same timeframe. 

Furthermore, Net Interest Income (NII) for the quarter stood at Rs. 4,237 crores, which was flat compared to the December quarter and an increase of 22 percent compared to the same period last year. 

State-run Power Finance Corporation’s asset quality improved on a sequential basis. Gross Non-Performing Assets (NPA) for the quarter stood at 3.34 percent compared to 3.52 percent in the December quarter. Moreover, the Net NPA improved from 0.9 percent in the December period to 0.85 percent in March. 

Additionally, the company has also declared a final dividend of Rs. 2.5 per share for the financial year 2024. Earlier, the company has already paid out dividends worth Rs. 11 per share so far this financial year. 

According to the latest shareholding pattern, the Promoters possess 55.99 percent of the company’s shares, while Domestic Institutional Investors (DIIs) hold 18.21 percent. Foreign Institutional Investors (FIIs) account for a 17.19 percent stake, with the remaining 8.58 percent held by Retail Investors. 

Headquartered in New Delhi, Power Finance Corporation Limited is a Systemically Important Non-Deposit taking NBFC registered with the RBI as an Infrastructure Finance Company. It is engaged in extending financial assistance to the Indian power sector. 

Written By Vaibhav Patil 


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