New Delhi: Maharatna PSU Power Finance Corporation (PFC) Ltd has reported virtually no earnings growth in the June quarter, with consolidated net profit rising just 0.2 percent year-on-year despite a double-digit expansion in its loan book.
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The lender posted a consolidated net profit of Rs 8,998 crore for the quarter ended June 30, compared with Rs 8,981 crore a year earlier. Revenue from operations was largely unchanged at Rs 28,526.86 crore against Rs 28,539.04 crore in the corresponding quarter last year, suggesting that balance-sheet growth is no longer translating into higher income at the same pace.
Power Finance Corporation's press release highlighted improvements in asset quality and growth in renewable energy financing but omitted the slowdown in earnings momentum.
The consolidated loan book grew to Rs 11.6 lakh crore as of June 30, while renewable energy exposure rose to Rs 1.63 lakh crore. Gross Stage-III assets improved to 0.66 percent from 1.47 percent a year ago, while the net Stage-III ratio declined to 0.13 percent from 0.31 percent.
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The board declared an interim dividend of Rs 3.90 per share.
On a standalone basis, net profit rose 5.4 percent to Rs 4,745 crore from Rs 4,502 crore a year earlier, outperforming the consolidated earnings growth. Standalone loan assets stood at Rs 5.7 lakh crore.
While PFC described the quarter as demonstrating "resilient performance", the headline numbers point to a business where profitability has plateaued. A near-flat revenue base and negligible growth in consolidated profit contrast sharply with the expansion in the loan portfolio, implying lower earnings traction from incremental lending even as asset quality continues to improve.
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