The company’s revenue from operations increased 15% to Rs 25,721.8 crore as against Rs 22,374.6 crore in the corresponding period of the preceding fiscal.
At the operating level, EBITDA was up 10.5% to Rs 25,354.2 crore in the second quarter of this fiscal over Rs 22,942.4 crore in the corresponding period in the previous fiscal. There was 13% growth in consolidated loan asset book, from Rs 9,23,724 crore as on September 30, 2023 to Rs 10,39,472 crore at September-end this year.
Following the Q2 results, brokerage firm Bernstein maintained its ‘Outperform’ rating on PFC with a target price of Rs 620.
In its Q2FY25 update, Bernstein highlighted that PFC is focusing on its core operations and making the right strategic moves. Loan disbursements have picked up, while asset quality continues to improve. Additionally, net interest margins (NIMs) and returns have shown positive growth, reflecting the company’s strong performance in the quarter.
Meanwhile, another global brokerage firm CLSA also maintained its ‘Outperform’ rating on PFC with a target price of Rs 610.The brokerage noted that disbursals have picked up after a slow Q1, although loan growth remains subdued due to high repayments. The write-back from Lanco has supported a strong net profit. Additionally, sanctions for thermal capex have increased, though PFC has decided not to proceed with the Shapoorji loan.The board has also declared a second interim dividend of Rs 3.50 per equity share (i.e. @ 35%) on the face value of the paid-up equity shares of 10 each for the FY 2024-25.
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