The Power Finance Corporation, India’s largest Non-Banking Financial Company (NBFC), has reported outstanding financial results for the fiscal year 2024 (FY’24), marking significant growth and profitability.
The PFC Group achieved its highest annual Profit After Tax (PAT) to date, with a remarkable 25 per cent increase from ₹21,179 crores in FY’23 to ₹26,461 crores in FY’24. This impressive financial performance solidifies PFC’s position as the leading NBFC in India. The total balance sheet size of the PFC Group also saw substantial growth, crossing the ₹10 lakh crore milestone and reaching ₹10.39 lakh crore in FY’24. This expansion was supported by a robust 16 per cent growth in the consolidated loan asset book, which rose from ₹8,57,500 crores on March 31, 2023, to ₹9,90,824 crores on March 31, 2024. Furthermore, the consolidated net worth, including non-controlling interest, increased by 20 per cent, from ₹1,11,981 crores to ₹1,34,289 crores.
PFC Group’s asset quality has shown significant improvement, with the consolidated Gross Non-Performing Assets (NPA) reducing to 3.02 per cent from 3.66 per cent and the consolidated Net NPA reaching its lowest level at 0.85 per cent, down from 1.03 per cent in the previous fiscal year. These reductions are attributed to the company’s active resolution efforts.
On a standalone basis, PFC has achieved a 24 per cent increase in PAT, rising from ₹11,605 crores in FY’23 to ₹14,367 crores in FY’24, making it the highest profit-making NBFC in India. The company also reported an 18 per cent increase in quarterly PAT, which grew from ₹3,492 crores in Q4’23 to ₹4,135 crores in Q4’24. In light of these achievements, the Board has proposed a final dividend of ₹2.50 per share, bringing the total dividend for FY’24 to ₹13.50 per share.
PFC’s loan asset book exhibited a 14 per cent growth, increasing from ₹4,22,498 crores to ₹4,81,462 crores. Notably, the company’s renewable loan portfolio experienced a 25 per cent year-on-year growth, surpassing the ₹60,000 crore mark and reaching ₹60,208 crore. This growth reaffirms PFC’s status as India’s largest renewable energy lender. The company has maintained strong capital adequacy levels, with a capital-to-risk (Weighted) Assets Ratio (CRAR) of 25.41 per cent and Tier 1 capital of 23.18 per cent, well above the regulatory requirements.
PFC’s asset quality has further improved, with the Net NPA ratio reaching its lowest level in the past six years at 0.85 per cent, down from 1.07 per cent in FY’23. Additionally, the Gross NPA for FY’24 decreased by 57 basis points to 3.34 per cent, compared to 3.91 per cent in the previous year. Notably, PFC has not added any new NPAs in over a year.
Parminder Chopra, Chairperson and Managing Director of PFC, highlighted the Group’s exceptional performance, emphasizing its position as the largest and most profitable NBFC in India on both a consolidated and standalone basis. Chopra noted the loan portfolio’s significant profit increase and growth, coupled with strong asset quality. She also underscored the company’s commitment to maximizing shareholder value, with a substantial total dividend payout for FY’24. Beyond financial metrics, PFC has demonstrated leadership in financing India’s clean energy sector, with a notable 25 per cent growth in its renewable loan portfolio.
Looking ahead, PFC is optimistic about its growth prospects in the power and infrastructure sectors. It aims to be a proactive partner in India’s development.
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