Q3 2025 Power Finance Corporation Ltd Earnings Call Transcript
Key Points
- Power Finance Corp Ltd (BOM:532810) reported a 17% year-on-year increase in consolidated profit after tax for the first nine months of FY25, reaching INR 22,157 crores.
- The company's consolidated loan asset book grew by 12% year-on-year, standing at INR 10 lakh INR 69,436 crores.
- The gross NPA ratio improved to 2.30% for the nine months of FY25, with a net NPA ratio of 0.73%, indicating better asset quality.
- The renewable energy portfolio saw a significant 28% year-on-year growth, solidifying Power Finance Corp Ltd (BOM:532810)'s position as a key player in India's energy transition.
- The company entered into the largest green loan agreement ever executed by JBIC, amounting to JPY 120 billion, to further expand its renewable energy portfolio.
- The USD-INR exchange rate volatility poses a risk, with potential impacts on profit and loss if the depreciation trend continues.
- There were no major upgrades in NPAs this quarter, and some projects like KSK Mahanadi are still awaiting resolution through NCLT.
- The company faces challenges in the conventional generation and state utilities sectors, with some renewable PPAs reportedly getting stuck.
- Prepayments have been significant, with INR 13,000 crores in prepayments during the current nine months, impacting loan growth.
- The waste-to-energy project faced technological issues, leading to a slippage into Stage III assets, contributing to a slight increase in gross Stage III assets.
Ladies and gentlemen, good day and welcome to the Power Finance Corporation Limited 3Q FY25 conference call hosted by Equirus Securities. (Operator Instructions)
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectation of the company as and date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict.
I now hand the conference over to Mr. Shreepal Doshi from Equirus Securities. Thank you and over to you, sir.
Thank you, [Steve]. Good afternoon, everyone. I welcome you all to the earnings conference call of Power Finance Corporation to discuss the 3Q performance of the company. Today, we have the senior management of the company, represented by Ms. Parminder Chopra, Chairman and Managing Director; Mr. Rajiv Ranjan Jha, Director of Projects; Mr. Manoj Sharma, Director of Commercial; and Mr. Sandeep Kumar, Director of Finance.
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