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ICICI Securities Report
Power Finance Corporation Ltd. reported standalone profit after tax of Rs 26.1 billion in Q4 FY22, up 12% YoY.
This was well above our estimate of Rs 21.9 billion aided by lower credit cost at Rs 3.5 billion (less than 40 basis points) versus our estimate of ~70 bps and lower tax rate at 18% (our estimate: 25%).
Earnings included Rs 5.1 billion towards net forex loss. Net interest income was up 10% YoY to Rs 33.7 billion, which aided YoY earnings uptick.
In line with the company’s commentary, Rs 15.69 billion worth of stressed assets were resolved during the quarter, including loans of Rs 13.45 billion to Essar Power MP and Rs 2.24 billion to RS India Wind Energy.
Gross non performing asset as a result moderated to 5.61% versus 6.06% QoQ.
Power Finance has increased provisioning coverage to 69% from 67% QoQ and 63% YoY.
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