Q4 2024 Power Finance Corporation Ltd Earnings Call and Investor Meet Transcript
Key Points
- Power Finance Corp Ltd (BOM:532810) reported a consolidated PAT of INR 26,461 crores for FY 2024, marking a 25% increase from the previous year.
- The company's consolidated balance sheet size reached INR 10.40 lakh crores, maintaining its position as the largest NBFC group in India.
- The net NPA ratio improved to 0.85% from 1.03% in FY 2023, indicating better asset quality.
- The Board proposed a final dividend of INR 2.5 per share, bringing the total dividend for FY 2024 to INR 13.50 per share.
- Power Finance Corp Ltd (BOM:532810) achieved a net interest margin of 3.46% and a spread of 2.64%, driven by stable yield and reduced cost of funds.
- The company faces potential risks from new RBI draft guidelines for projects under implementation, which could impact provisioning requirements.
- Despite significant provisioning, the company still has a total NPA book of INR 16,000 crores, with 21 stressed projects.
- The company's growth strategy appears conservative, with a loan growth target of 12% to 15%, despite significant opportunities in the power sector.
- There are concerns about the impact of exchange rate fluctuations on the company's financials, despite hedging efforts.
- The company has not yet reversed provisions for certain large accounts like LANCO AMARKANTAK, pending final NCLT approval.
I'd like to invite Shrimati Parminder Chopra, Chairperson and Managing Director, to address the gathering.
Good evening, and warm welcome to all of you. This is our first investor meet one-to-one after the COVID time, and I'm happy to see a good turnaround from our investor community. Today morning, PFC results for fourth quarter and financial year ending March 2024 has been declared. And I'm happy to share that we have again delivered a remarkable performance. I'll start with PFC's consolidated performance. At a group level, PFC continues to deliver strong performance year-on-year. We continue to be the largest NBFC group in India with a consolidated balance sheet size of INR 10.40 lakh crores. For FY 2024, the consolidated PAT stood at INR 26,461 crores. That is 25% increase from the previous financial year. The group loan asset book registered a growth of 16%. On the asset quality front, we continue to see a decreasing trend in our NPA levels. The consolidated net NPA ratio for FY
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