Power Finance Corporation (PFC) shares have surged close to 7% on positive news, trading at ₹479.25 as of 10:28 am on the NSE. The strong rally in PFC’s stock price follows upbeat guidance from the management and robust Q2 FY25 financial results.
Key Factors Driving the Surge
- Positive Guidance and Strategic Decisions:
- PFC announced it will not lend to the Shapoorji Group or Vodafone Idea, decisions seen as risk-reducing and focusing on safer lending.
- Management confirmed that its core business is ramping up, and the second half (H2) of FY25 is expected to be particularly strong.
- The company has resumed sanctions in the conventional generation segment, which is considered a strategic positive.
- Maintained Loan Book Growth Guidance:
- PFC’s management retained its FY25 loan book growth guidance at around 14%, indicating confidence in its growth trajectory.
- Strong Financial Performance in Q2 FY25:
- Net Profit: PFC reported a net profit of ₹7,215 crore, marking an 8.9% increase year-on-year from ₹6,628.2 crore in Q2 FY24.
- Revenue from Operations: Revenue grew by 15% to ₹25,721.8 crore, up from ₹22,374.6 crore in the same period last year.
- EBITDA: Operating EBITDA rose by 10.5% to ₹25,354.2 crore, showcasing the company’s strong operational efficiency.
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