PFC Q2 profit seen up 18% to Rs 1507.5 cr

State-run power project financing company Power Finance Corporation (PFC) is likely to report a 18 percent growth in profit after tax at Rs 1,507.5 crore in the quarter ended September 2014 compared to Rs 1,273.8 crore in same quarter last year, according to the average of estimates of analysts polled by CNBC-TV18.

Net interest income is seen rising 12 percent to Rs 2,367 crore from Rs 2,111 crore during the same period.

Asset quality needs to be closely monitored. In Q1FY15, key reason for asset quality worsening was the Rs 724 crore Ratnagiri Dabhol account that was slipping into NPA. The key highlight was gross non-performing assets (NPA) crossed 1 percent while disbursements were flat and loan growth was restricted to 16 percent Y-o-Y.

Key things to watch out for are loan growth (which is likely to remain healthy) and margin (that may fall Y-o-Y).