Power Finance Corporation (PFC) has recorded a net profit of ₹59.82 billion (~$720.9 million) for the first quarter (Q1) of the financial year (FY) 2024, a year-over-year (YoY) increase of 31% mainly due to an increase in total income.

PFC posted a total income of ₹210.01 billion (~$2.5 billion) during the April-June period, an increase of 13% YoY.

PFC’s consolidated disbursements surged more than threefold to ₹569.25 billion (~$6.8 billion) from ₹170.84 billion (~$2 billion) a year ago.

The consolidated net worth, including non-controlling interest, increased by 19% to ₹1.18 trillion (~$14.2 billion) as of June 30, 2023.

The management of stressed assets led to notable improvements in asset quality. The net non-performing assets (NPAs) attained a new low, falling to 1% in Q1 FY24 from 1.57% a year ago. Concurrently, gross NPAs substantially declined by 148 basis points, reaching 3.54% during the quarter.

The company did not add any new NPAs during the quarter.

To date, PFC has sanctioned ₹1.16 trillion (~$13.9 billion), with a disbursement of ₹607.11 billion (~$7.3 billion) under the Late Payment Surcharge Rules.

In April, PFC sanctioned project financing of more than ₹22 billion (~$268.7 million) to renewable energy solutions provider Vibrant Energy to develop 300 MW of wind-solar hybrid power projects in Madhya Pradesh and Karnataka.

The company also approved a loan of ₹6.33 billion (~$77 million) to Gensol Engineering to purchase 5,000 passenger electric vehicles (EVs) and 1,000 cargo EVs to expand its green mobility footprint.

In March, PFC inked a project loan agreement with the Japan Bank for International Corporation (JBIC) for a ¥2.6 billion (~$20.2 million) facility. PFC would use the funds under the facility to finance its renewable energy portfolio and provide competitive rates. Under the agreement, JBIC  Bank would finance some of PFC’s clean projects to mitigate greenhouse gas emissions while establishing sustainable solutions in eco-friendly operations.

In 2022, PFC disbursed loans of over ₹1.06 trillion (~$12.9 billion), up by 28% YoY. The higher loan disbursements fuelled the company’s robust performance for the year.