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Power Finance Corporation Posts Strong Q4 FY25 Results, Proposes Final Dividend

The state-owned lender reported double-digit growth in profit, revenue, and AUM, driven by stressed asset resolutions, while brokerages adjusted future price targets due to moderated loan growth expectations.

rupee notes
Power Finance Corporation  | Image: Power Finance Corporation

Overview

  • PFC's consolidated net profit rose 11% year-on-year to Rs 8,358 crore in Q4 FY25, supported by a Rs 12 billion interest write-back from the KSK Mahanadi resolution.
  • Revenue from operations grew 10% year-on-year to Rs 20,170 crore, reflecting robust financial performance for the quarter.
  • Assets under management expanded by 12.8% year-on-year to Rs 5.43 lakh crore, showcasing steady loan growth despite a cautious outlook.
  • The company proposed a final dividend of Rs 2.05 per share for FY25, adding to interim dividends declared earlier in the fiscal year.
  • Brokerages Motilal Oswal and Emkay Global reaffirmed Buy ratings but reduced price targets to Rs 485 and Rs 500, respectively, citing concerns over potential loan growth moderation.