Power Finance Corp Q4 Review - Lower Credit Cost Leads To Earnings Beat: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..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. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Power Finance Corp Q4 Review - Lower Credit Cost Leads To Earnings Beat: ICICI Securities

Power Finance Corp Q4 Review - Lower Credit Cost Leads To Earnings Beat: ICICI Securities

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