InvestorQ : How did Power Finance Corp report such a sharp growth in profits in a tough quarter?
Rashi Mehra made post

How did Power Finance Corp report such a sharp growth in profits in a tough quarter?

Answer
user profile image
Archita Jajjoo answered.
2 months ago


Power Finance Corporation, or PFC as it is better known in stock market circles, reported a very smart 23% rise in net profit at Rs.3557 crore for the Jun-20 quarter. This was largely supported by a surge in the top line of the company in the midst of the pandemic.

PFC report total revenues up by nearly 15% at Rs.16,932 crore for the Jun-20 quarter. It may be recollected that PFC had acquire majority control of REC last year by purchasing the government stake as part of its divestment move.

PFC is the largest non-banking financial company (NBFC) in power sector in India and it basically lends to the power sector. It gives long term and medium term loans to the power sector, including the generators, transmission companies and the distributors.