Power Finance Corporation Ltd 2024: (PFC) is a government-owned company in India that works under the Ministry of Power. It was started in 1986 and helps fund the country’s power sector. As of 30 June 2023, PFC’s net worth was INR 1.184 trillion. In the financial year 2017–18, PFC was ranked as the 8th most profitable government-owned company.
It is the largest Non-Banking Financial Company (NBFC) and the biggest infrastructure finance company in India. On 12 October 2021, the government raised PFC’s status from ‘Navratna’ to ‘Maharatna.’
Originally, PFC was fully owned by the Indian government, but in January 2007, it went public. The Initial Public Offering (IPO) was a big success, being oversubscribed by more than 76 times. PFC is now listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The company is also ISO 9001:2000 certified and holds the Maharatna status. On 6 December 2018, the government approved PFC’s purchase of a 52.63% stake in REC Ltd., which was completed on 28 March 2019 for around Rs. 145 million.
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Power Finance Corporation Ltd 2024
Power Finance Corporation Ltd 2024: (PFC) is a well-known financial company in India, established in 1986, that focuses on the power sector. As a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Power, Government of India, PFC has played an important role in providing funds and support to the Indian power industry.
The company helps finance power projects in areas like generation, transmission, and distribution, assisting both public and private organizations.
In 2024, PFC continues to be a major player in India’s energy sector, concentrating on sustainable growth, creating new financial solutions, and supporting the country’s move towards clean energy.
The company provides various financial services, including project financing, consultancy, and investment advice, designed to meet the changing needs of the power industry.
PFC’s plans for 2024 are in line with the government’s goals of increasing renewable energy, improving power infrastructure, and making sure electricity is affordable and accessible to everyone.
The company’s commitment to good management, financial strength, and social responsibility has made it a trusted partner in the development of India’s power sector.
Financials
Power Finance Corporation Ltd 2024:
Balance Sheet
| (INR) | Jun 2024infoFiscal Q1 2025 ended 6/30/24. Reported on 8/6/24. | Y/Y change |
|---|---|---|
| Cash and short-term investmentsInvestments that are relatively liquid and have maturities between 3 months and one year | 186.66B | 4.36% |
| Total assetsThe total amount of assets owned by a company | — | — |
| Total liabilitiesSum of the combined debts a company owes | — | — |
| Total equityThe value of subtracting the total liabilities from the total assets of a company | 1.34T | — |
| Shares outstandingTotal number of common shares outstanding as of the latest date disclosed in a financial filing | 3.30B | — |
| Price to bookA ratio used to determine if a company’s market value is in line with the value of its assets less liabilities and preferred stock | 1.68 | — |
| Return on assetsA financial ratio that shows a company’s profitability compared to its assets | — | — |
| Return on capitalCompany’s return above the average cost it pays for its debt and equity capital | — | — |
| (INR) | 2024infoFiscal year ended 3/31/24. | Y/Y change |
|---|---|---|
| Cash and short-term investmentsInvestments that are relatively liquid and have maturities between 3 months and one year | 186.66B | 27.66% |
| Total assetsThe total amount of assets owned by a company | 10.39T | 15.93% |
| Total liabilitiesSum of the combined debts a company owes | 9.05T | 15.36% |
| Total equityThe value of subtracting the total liabilities from the total assets of a company | 1.34T | — |
| Shares outstandingTotal number of common shares outstanding as of the latest date disclosed in a financial filing | 3.30B | — |
| Price to bookA ratio used to determine if a company’s market value is in line with the value of its assets less liabilities and preferred stock | 1.68 | — |
| Return on assetsA financial ratio that shows a company’s profitability compared to its assets | 2.73% | — |
| Return on capitalCompany’s return above the average cost it pays for its debt and equity capital | — | — |
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Cash Flow
| (INR) | Jun 2024infoFiscal Q1 2025 ended 6/30/24. Reported on 8/6/24. | Y/Y change |
|---|---|---|
| Net incomeCompany’s earnings for a period net of operating costs, taxes, and interest | 55.43B | 21.13% |
| Cash from operationsNet cash used or generated for core business activities | — | — |
| Cash from investingNet cash used or generated in investing activities such as purchasing assets | — | — |
| Cash from financingNet cash used or generated in financing activities such as dividend payments and loans | — | — |
| Net change in cashThe amount by which a company’s cash balance increases or decreases in an accounting period | — | — |
| Free cash flowAmount of cash a business has after it has met its financial obligations such as debt and outstanding payments | — | — |
| (INR) | 2024infoFiscal year ended 3/31/24. | Y/Y change |
|---|---|---|
| Net incomeCompany’s earnings for a period net of operating costs, taxes, and interest | 197.61B | 24.37% |
| Cash from operationsNet cash used or generated for core business activities | -978.20B | -30.92% |
| Cash from investingNet cash used or generated in investing activities such as purchasing assets | -34.09B | -101.29% |
| Cash from financingNet cash used or generated in financing activities such as dividend payments and loans | 1.01T | 34.06% |
| Net change in cashThe amount by which a company’s cash balance increases or decreases in an accounting period | 319.00M | 103.65% |
| Free cash flowAmount of cash a business has after it has met its financial obligations such as debt and outstanding payments | — | — |
About Power Finance Corp
Power Finance Corporation Ltd 2024: (PFC) is a government-owned company in India, working under the Ministry of Power. It was established in 1986 to provide financial support for projects in the power sector, like generating, transmitting, and distributing electricity.
As of 30 June 2023, PFC’s net worth was INR 1.184 trillion, showing that the company is financially strong. PFC is the largest Non-Banking Financial Company (NBFC) in India and the biggest company that finances infrastructure projects.
In the 2017–18 financial year, PFC was one of the top 10 most profitable government-owned companies in India. Because of its important role and good performance, the Government of India upgraded PFC’s status from ‘Navratna’ to ‘Maharatna’ on 12 October 2021, giving it more freedom to make financial decisions.
PFC is listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company is also ISO 9001:2000 certified, which means it follows strict quality standards. In December 2018, PFC expanded its role in the power sector by buying a majority stake in REC Ltd., another major player in the industry.
PFC continues to play a key role in supporting India’s energy infrastructure, backed by its strong financial position and significant contributions to the power sector.
Shareholding Patterns (in %)
| ategory | 30-Jun-2024 | 31-Mar-2024 | 31-Dec-2023 |
|---|---|---|---|
| Promoter & Promoter Group | 55.99 | 55.99 | 55.99 |
| Public | 44.01 | 44.01 | 44.01 |
| Shares held by Employee Trusts | – | – | – |
| Total | 100.00 | 100.00 | 100.00 |
Financial Results (Amount in Lakhs.)
| Quarter ended | Total Income | Net Profit/Loss | Earnings Per Share |
|---|---|---|---|
| 30-Jun-2024 | 11,91,624.00 | 3,71,788.00 | 11.27 |
| 31-Mar-2024 | 12,24,910.00 | 4,13,545.00 | 12.53 |
| 31-Dec-2023 | 11,85,433.00 | 3,37,720.00 | 10.23 |
| 30-Sep-2023 | 11,78,849.00 | 3,84,743.00 | 11.66 |
| 30-Jun-2023 | 10,14,218.00 | 3,00,694.00 | 11.39 |
FAQ’s
1. What is the target price of power finance?
- The target price for Power Finance Corporation Ltd is ₹596.67, which suggests a potential upside of 18.33% from the current price of ₹504.25, based on the ratings from 6 analysts.
2. Is power finance debt free?
- Debt Level: PFC’s net debt to equity ratio (632.9%) is considered high.
3. Who is the owner of Power Finance?
- (P. F. C.) is an Indian central public sector undertaking owned by the Ministry of Power, Government of India.
4. Is Power Finance a Government company?
- PFC is overseen by the Ministry of Power. In October 2021, it was given the prestigious ‘Maharatna CPSE’ status, and the RBI recognized it as an Infrastructure Finance Company on July 28, 2010. PFC is essential in supporting India’s growth as a significant global player.
5. What is the future of Power Finance Corporation?
PFC aims to grow its operations internationally, starting with countries in the SAARC region. It will first provide consultancy and financial services that don’t involve direct funding, and then move towards offering loans as it progresses.
Conclusion
Power Finance Corporation Ltd 2024: (PFC) continues to play a crucial role in India’s power sector, helping the country grow and transition to cleaner energy. By focusing on sustainable practices, offering practical financial solutions, and supporting government goals, PFC remains a reliable partner in ensuring India’s power systems are modern, efficient, and accessible to everyone. With its commitment to transparency, strong leadership, and social responsibility, PFC is set to make a significant impact on the future of India’s energy landscape.
For more insights and updates on India’s financial sector, visit finrollnews.com.
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