Finance
Power Finance Corp, trading under the stock ticker PFC, is a prominent financial institution in India with a market capitalization of Rs. 132,367 Crores. Established in 1986 and headquartered in New Delhi, it operates as a non-banking finance company primarily serving the power, logistics, and infrastructure sectors.
The company specializes in a diverse range of financial products and advisory services, including:
Fund-based financial solutions: These include project term and corporate loans, debt refinancing, lease financing for equipment and wind power projects, line of credit for coal imports, credit facilities for purchasing power, short/medium-term loans, buyer's lines of credit, debt underwriting, and grants.
Non-fund-based products: Power Finance Corp offers guarantees for contract performance in power purchase agreements, letters of comfort, and consultancy services. They also provide transaction advisory services, project development and management, as well as regulatory and tariff support.
In the previous 12 months, the company reported a revenue of Rs. 101,489.6 Crores and achieved a significant profit of Rs. 29,713 Crores. With a strong revenue growth of 34.2% over the past three years, Power Finance Corp maintains a dividend yield of 3.93%, distributing Rs. 15.75 per share to its investors.
Overall, Power Finance Corp exemplifies a profitable financial entity dedicated to supporting critical sectors in India through innovative funding and advisory solutions.
Smart Money: Smart money has been increasing their position in the stock.
Technicals: Bullish SharesGuru indicator.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Size: It is among the top 200 market size companies of india.
Profitability: Very strong Profitability. One year profit margin are 29%.
Growth: Good revenue growth. With 34.2% growth over past three years, the company is going strong.
Dividend: Pays a strong dividend yield of 4.74%.
Momentum: Stock is suffering a negative price momentum. Stock is down -2.3% in last 30 days.
Comprehensive comparison against sector averages
PFC metrics compared to Finance
Category | PFC | Finance |
---|---|---|
PE | 4.51 | 17.74 |
PS | 1.32 | 3.70 |
Growth | 16.6 % | 11.4 % |
PFC vs Finance (2021 - 2025)
Summary of Power Finance Corp's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook and Key Points:
1. Financial Performance:
2. Asset Quality & Resolutions:
3. Forex Exposure:
4. Growth Drivers:
5. Sector Focus:
6. Risks & Mitigation:
Outlook: Management remains confident in sustaining double-digit growth, driven by renewables, distribution, and infrastructure. Asset resolution progress and strategic green financing reinforce long-term stability.
Last updated: Feb 25
Question 1:
Avinash Singh (Emkay Global): What are the growth drivers for conventional generation, renewables, state utilities, and non-power infra? How is RDSS disbursement progressing? Quantify recoveries/resolutions impacting write-backs in Q3 and expectations for Q4/FY26.
Answer:
Growth is driven by renewables (28% YoY) and distribution (60% of Q3 disbursements). RDSS delays stemmed from initial implementation challenges, but 90-94% of contracts are now awarded, with disbursement expected to accelerate. No major NPA upgrades occurred in Q3, but resolution of KSK Mahanadi (Rs.3,300 crore, 55% provisioned), Shiga Energy (Rs.522 crore), and TRN Energy (Rs.1,139 crore) is anticipated in Q4, offering provision reversals.
Question 2:
Raghu (Travest Capital): What is the Q4 provision impact of unhedged forex exposure (5% of $9 billion book) amid rupee depreciation? What is PFC's equity stake and valuation timeline in KSK Mahanadi?
Answer:
Unhedged exposure (Rs.45 crore impact per Rs.1 depreciation) may incur ~Rs.45 crore in Q4 (rupee moved from 85.62 to 86.5). KSK lenders will receive 26% equity; PFC's share is ~12% (proportionate to loans). Equity valuation is negligible initially, with future gains dependent on project performance.
Question 3:
Shreya Shivani (CLSA): Why were Q3 repayments elevated in the transmission book? Explain gross Stage 3 increase (Rs.133B to Rs.135B).
Answer:
Higher repayments in transmission included a prepaid loan. Gross Stage 3 rose due to slippage of a Rs.130 crore waste-to-energy project (technological issues). No broader sectoral stress observed.
Question 4:
Shweta (Elara Capital): How are yields shaping up amid competitive pressures (e.g., ACME Renewables)? How will Q4 disbursements achieve 14% YoY growth despite historical repayment trends?
Answer:
Renewable yields start at 9%, varying with project risk. Disbursements focus on distribution (60% in Q3) and generation (62% of FY25 sanctions). Q4 typically sees higher disbursements (37% of FY24 total), with lower repayments (Rs.18,000-19,000 crore vs. Rs.24,000-25,000 crore average).
Question 5:
Sarvesh Gupta (Maximal Capital): What is the net recovery/provision impact from advanced resolutions (KSK, Shiga, TRN)?
Answer:
KSK expects >100% recovery (55% provisioned), potentially reversing provisions. Shiga/TRN resolutions outside NCLT may also yield full recovery. Exact figures depend on final approvals.
Question 6:
Nishant Shah (Millennium): What is the total forex loss risk if INR depreciates to 88/USD?
Answer:
A Rs.1 depreciation impacts unhedged exposure by Rs.45 crore. At Rs.88/USD, total P&L impact (hedged + unhedged) could be Rs.400-500 crore.
Question 7:
Alok Srivastava (UBS): Are renewable disbursements slowing due to PSA delays? What is the undisbursed renewable sanctioned amount?
Answer:
No slowdown observed: Rs.90,000 crore sanctioned (Rs.16,000 crore disbursed in FY25). Undisbursed renewable sanctions are ~Rs.74,000 crore. REPO-linked liabilities (Rs.25,000 crore) reset periodically, but assets are fixed-rate.
Valuation | |
---|---|
Market Cap | 1.34 LCr |
Price/Earnings (Trailing) | 4.51 |
Price/Sales (Trailing) | 1.32 |
EV/EBITDA | 1.33 |
Price/Free Cashflow | -1.57 |
MarketCap/EBT | 3.56 |
Fundamentals | |
---|---|
Revenue (TTM) | 1.01 LCr |
Rev. Growth (Yr) | 13.68% |
Rev. Growth (Qtr) | 4.14% |
Earnings (TTM) | 29.71 kCr |
Earnings Growth (Yr) | 23.28% |
Earnings Growth (Qtr) | 7.55% |
Profitability | |
---|---|
Operating Margin | 37.12% |
EBT Margin | 37.12% |
Return on Equity | 20.47% |
Return on Assets | 2.69% |
Free Cashflow Yield | -66.18% |
Investor Care | |
---|---|
Dividend Yield | 4.74% |
Dividend/Share (TTM) | 19.25 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 67.57 |
Financial Health | |
---|---|
Debt/Equity | 0.00 |
Debt/Cashflow | 0.00 |
Updated May 2, 2025
PFC decided against extending a loan to Shapoorji Pallonji Group, potentially impacting the group's refinancing plans.
PFC's loan growth was slow despite healthy recovery in disbursals, as a larger chunk of repayments were scheduled for the first half of the current financial year.
PFC's asset quality showed mixed performance, with non-performing assets rising to 0.94% of total assets, up from 0.74% in Q2.
PFC reported a 23% year-on-year increase in profit after tax for Q4FY24, reaching ₹7,556 crore.
PFC secured a significant financing agreement of ₹26,800 crore with Madhya Pradesh's power utilities to support critical infrastructure projects.
PFC's total income increased to ₹25,754.73 crore, up from ₹22,387.32 crore in the previous year.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Understand Power Finance Corp ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
President of India | 55.99% |
KOTAK EQUITY HYBRID | 1.96% |
NIPPON LIFE INDIA TRUSTEE LTD-A/C NIPPON INDIA ARB | 1.78% |
LICI LIFE NON-PAR | 1.74% |
HDFC MUTUAL FUND - HDFC S&P BSE 500 ETF | 1.27% |
GOVERNMENT OF SINGAPORE - E | 1.23% |
DSP EQUITY SAVINGS FUND | 1.19% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of Power Finance Corp against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
IRFC | Indian Railway Finance CorpFinancial Institution | 1.62 LCr | 26.91 kCr | -2.59% | -21.81% | 24.97 | 5.98 | +1.82% | +1.15% |
RECLTD | RECFinancial Institution | 1.1 LCr | 53.79 kCr | -1.19% | -24.26% | 7.06 | 2.05 | +19.22% | +19.20% |
IREDA | Indian Renewable Energy Development AgencyFinancial Institution | 44.43 kCr | 6.23 kCr | +2.42% | -8.86% | 28.96 | 7.13 | - | - |
HUDCO | Housing &Urban Development CorpFinancial Institution | 44.4 kCr | 9.69 kCr | +7.74% | -0.10% | 16.56 | 4.58 | +27.17% | +30.45% |
LICHSGFIN | Lic Housing FinanceHousing Finance Company | 33.11 kCr | 27.75 kCr | +6.43% | -10.03% | 6.43 | 1.19 | +3.71% | +5.71% |
PFS | PTC India Financial ServicesNon Banking Financial Company(NBFC) | 2.05 kCr | 659.68 Cr | -1.51% | -28.67% | 11.87 | 3.11 | -17.44% | -5.76% |