Q2 2025 Power Finance Corporation Ltd Earnings Call Transcript
Key Points
- Power Finance Corp Ltd (BOM:532810) achieved the lowest gross NPA ratio of 2.71% since FY 2019, indicating improved asset quality.
- The company executed the largest ever foreign currency term loan deal by an Indian PSU, amounting to $1.265 billion.
- Consolidated profit after tax increased by 14% year-on-year, reaching INR 14,397 crores for H1 2025.
- The company's loan asset book grew by 13% year-on-year, showcasing robust business growth.
- Power Finance Corp Ltd declared an interim dividend of INR 3.5 per share, reflecting a commitment to shareholder returns.
- Despite strong disbursements, the loan growth was only 10% due to higher repayments, particularly in the renewable and distribution sectors.
- The company faced challenges in asset resolution, with some recoveries remaining unallocated pending final NCLT orders.
- There is a cautious approach towards new infrastructure projects, with the board deciding against sanctioning certain loans.
- The company's growth projections are considered conservative by some analysts, potentially underestimating market opportunities.
- The capital adequacy ratio decreased from 27% to 24.38%, indicating a need for careful capital management amidst growth.
Ladies and gentlemen, good day and welcome to Power Finance Corporation Limited Q2 H1 FY25 conference call hosted by Securities. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call? Please signal an operator by pressing star then zero on your touchtone telephone.
Please note that this conference is being recorded.
This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company. As on date of this call, these statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.
I now hand the conference over to Mr Shreepal Doshi. Thank you and over to you, sir.
Thank you, Pak Good evening everyone. We have the management of Power Finance Corporation to discuss the Q2
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