Q1 2025 Power Finance Corporation Ltd Earnings Call Transcript
Key Points
- Power Finance Corp Ltd (BOM:532810) reported a consolidated profit after tax of INR 7,182 crores for Q1 FY '25, marking a 20% year-on-year increase.
- The company's loan asset book grew by 13%, surpassing the INR 10 lakh crore mark.
- The consolidated gross NPA ratio decreased to 2.97% in Q1 '25 from 3.54% in Q1 '24, indicating improved asset quality.
- Net profit for the stand-alone performance in Q1 '25 was INR 3,718 crores, a 24% year-on-year increase.
- The company declared an interim dividend of INR 3.45 per share, reflecting strong financial health and shareholder returns.
- Disbursements for Q1 '25 were slightly subdued at INR 19,483 crores, leading to a lower loan asset book growth of around 10% year-on-year.
- The transformation exercise initiated with Boston Consulting Group has temporarily slowed down normal business operations.
- There were no major additions in provisioning numbers for Q1 '25, but the company created an incremental provision of INR 62 crores.
- The outstanding foreign currency portfolio includes 15% yen-denominated loans, which could pose exchange rate risks despite hedging.
- Stage 2 assets increased to approximately 11% of the total outstanding, up from 7.5% in the previous quarter, indicating some stress in the loan portfolio.
Ladies and gentlemen, good day, and welcome to the Power Finance Corporation Limited Q1 FY '25 earnings conference call hosted by Elara Securities Private Limited. [Operator Instructions] Please note that this conference is being recorded. And I turn the conference over to Ms. Shweta from Elara Daptardar from Elara Securities Private Limited. Thank you, and over to you, ma'am.
Thank you, Neha. Good evening, everyone. On behalf of Elara Securities, we welcome you all to Q1 FY '25 Earnings Call of Power Finance Corporation. From the esteemed management, we have with us today Ms. Parminder Chopra, Chairman and Managing Director; Mr.
Rajiv Ranjan Jha, Director Projects; Mr. Manoj Sharma, Director of Promotion; Mr. Sandeep Kumar, Director of Finance.
Without further ado, I now hand over the call to Ms. Chopra for opening remarks, post which we can open the floor for Q&A. Thank you, and over to you, ma'am.
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