Power Finance Corporation Ltd's Q1FY19 standalone net profit declines 3.92% yoy to Rs1,373cr

The company’s standalone NII stood at Rs1,993cr, down 27.89% yoy but up 4.73% qoq.

Sep 12, 2018 02:09 IST India Infoline Research Team

Power Finance Corporation Ltd Q1FY19

Standalone Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
NII 1,993 [27.9]
Net Profit (adjusted) 1,373 [3.9]

PFC saw a sequential improvement in Net Interest Income and Net Profit for Q1FY19. Interest Income came in higher by 8.1% qoq at Rs6,617cr. NII came in at Rs1,993cr, up 4.7% qoq. Net Profit also rose sharply by 46.8% qoq to Rs1,373cr in Q1FY19.
  • Provisions for Q1FY19 stood at Rs17,238cr.
  • Disbursements grew by 1% yoy to Rs12,981cr in Q1FY19. The gross loan assets stood at Rs2.85 lakh cr at the end of Q1FY19. Of the loan assets, Rs27,384cr of assets from the private sector are seen as stressed.
  • Cost of funds stood at 8.08% for Q1FY19, an increase of 3bps qoq.
  • Net Interest Margin on Earning Assets stood at 3.26%, a decrease of 24bps qoq.
  • Net NPAs stood at 4.53% at the end of Q1FY19 against 7.39% at the end of Q4FY18.
  • ROE and ROA improved sharply in Q1FY19 at 14.76% and 1.98% respectively. For FY18, ROE and ROA stood at 9.41% and 1.34% respectively.
  • The Board has also passed a resolution to raise up to Rs65,000cr over the next 12 months via debt securities in either domestically or overseas markets.

Technical View:

Power Finance Corporation Ltd ended at Rs. 81.20, down by 7.25 points or 8.2% from its previous closing of Rs. 88.45 on the BSE.
The scrip opened at Rs. 89.10 and touched a high and low of Rs. 90.20 and Rs. 80.35 respectively. A total of 3,65,87,510 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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