Power Finance Corporation’s share price rose by 2.37%, trading at ₹427.30 on the NSE at 10:00 AM. The stock opened at ₹424.30, up from its previous close of ₹417.30. It surged over 7% in yesterday’s session, ending a six-day losing streak.
As per news reports shares of PFC jumped after JSW Energy won the bid for KSK Mahanadi Power under the Insolvency and Bankruptcy Code. The total bid amount for the acquisition was ₹15,985 crore.
This positive development is also beneficial for creditors of KSK Mahanadi Power, which includes state-run financial institutions like PFC. The company owed ₹32,243 crore to creditors, with ₹29,400 crore owed to financial creditors. PFC’s exposure to KSK Mahanadi stands at ₹3,428 crore.
Power Finance Corporation (PFC) reported a net profit increase of 8.85% YoY, reaching ₹7,214.90 crore for Q2 FY25, driven by a 14.96% rise in total revenue, which stood at ₹25,721.79 crore.
The company’s total income grew 15.04% YoY, reaching ₹25,754.73 crore in the quarter ending September 2024. Profit before tax (PBT) rose by 8.57%, totalling ₹9,367.86 crore.
However, total expenses surged by 19.1%, amounting to ₹15,843.01 crore for Q2 FY25. Despite the increase in costs, PFC declared an interim dividend of ₹3.50 per share for FY25, subject to shareholder approval, with a record date of November 25, 2024.
Power Finance Corporation (PFC) is a Non-Banking Financial Corporation (NBFC) in India, established on July 16, 1986. PFC specialises in providing financial support to the power sector, with a significant market share of around 20%. It is recognised for maintaining a healthy loan book and low levels of non-performing assets (NPAs) due to its robust evaluation and appraisal processes.
PFC also plays a key role in India’s energy infrastructure development by financing projects related to power generation, transmission, and distribution.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 15, 2025, 12:34 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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