PFC gains on posting healthy financials

Power Finance Corporation (PFC) has reported healthy numbers for Q4FY19. For the fiscal year 2018-19, PFC delivered an annual net profit of Rs. 6,953 crore and a quarterly profit of Rs. 2,118 crore. The annual net profit is up by 58% from FY 2017-18. 

Power Finance Corporation Limited has reported a net profit of ₹ 2117.56 crore for the fourth quarter ended March 31, 2019. This represents a 165.96 per cent increase over the net profit of ₹ 796.35 crore recorded in same quarter of the previous financial year. 

While the quarterly net profit grew 166 per cent to Rs. 2,117.56 crore in Q4FY19 compared to Rs. 796.35 crore recorded in Q4FY18. On the business front, PFC's loan asset book crossed Rs. 3 trillion mark. The loan asset book grew at a steady rate of 13 per cent. 

PFC has maintained a consistent growth rate despite the challenges in the power sector. The increase could be attributable to PFC's strategy to diversify its loan book. As regards to the loan asset composition for FY19, 28 per cent were T&D portfolio as compared to 24 per cent in FY18. Going forward, PFC would continue with its efforts to diversify the loan book. 

On Thursday, the shares of PFC opened at Rs. xx against Wednesday close of Rs xx. At 12:32 hours, the stock was trading at Rs xx per cent higher than the previous close. It reached an intraday high of Rs 62 and an intraday low of Rs. 58 per share on the BSE. The 52-week high stood at Rs. 73.80 and 52-week low was at Rs. 50 per share on the BSE.