Power Finance Corporation shares jump nearly 4% on robust Q3 show

Power Finance Corporation shares have tanked 17 percent in the last three months.

Shares of Power Finance Corporation or PFC gained almost 4 percent to Rs 387.75 in morning deals on February 13, snapping a three-day losing streak on the bourses, following the company's third-quarter earnings.

On February 12, the company reported a net profit of Rs 4,155, that's an increase of almost 23 percent from Rs 3,377 crore reported in the corresponding quarter of the previous fiscal year, PFC disclosed in an exchange filing.

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The company's net interest income (NII), representing the difference between interest earned and interest expended, climbed 13 percent year-on-year to Rs 4,694 crore in the December quarter, up from Rs 4,158 crore in the same period last year.

Asset quality showed a slight improvement, with gross non-performing assets (NPAs) easing to 2.68 percent from 2.71 percent sequentially, while net NPAs edged down to 0.71 percent from 0.72 percent. Loan growth for the quarter stood at 10 percent, trailing the company’s full-year FY25 guidance of 14 percent.

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Furthermore, the management anticipates a strong recovery in the final quarter, with resolution processes for three projects, including KSK Mahanadi, nearing completion. KSK Mahanadi is expected to achieve full principal recovery, leading to a write-back of provisions.

The company had liabilities of Rs 32,243 crore, with Rs 29,400 crore owed to financial creditors. As per KSK’s disclosure on November 11 last year, it had already distributed Rs 6,241 crore under the NCLT order, bringing the outstanding claims down to Rs 26,001 crore.

At about 11:30 am, shares of the company were trading at Rs 386, higher by 3.2 percent from the last close on the NSE. Power Finance Corporation shares have tanked 17 percent in the last three months.

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