PFC Q4 Review - Exits FY21 With 2.4% RoA, 8% Dividend Yield; Credit Cost Contained: ICICI Securities
BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Power Finance Corporation Ltd. has reported Q4 FY21 profit after tax of Rs 23.3 billion (flat QoQ), which was higher than our expectations.
The company exited FY21 with Rs 84.4 billion profit after tax (compared to Rs 56.5 billion in FY20) – return on assets of 2.4%, credit cost of sub-1% and return on equity of 17% plus.
Stage-III assets, as guided, declined to 5.7% with resolution of four projects in FY21.
There are other resolutions underway expected in H1 FY22.
Credit cost for FY21 settled sub-100 basis points as there was no incremental haircut required on resolved assets.
Based on detailed account-by-account analysis, we further build credit cost of 1.3%/0.6% for FY22E/FY23E, respectively.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint 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 BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.