2 Bonuses, 3.3% Yield: Powerhouse Maharatna PSU NBFC Declares Final Rs 2.5/Sh Dividend, Q4 PAT Jumps 20% YoY

Powerpack, NBFC with a Maharatna status, Power Finance Corporation of India (PFC) rallied sharply on Wednesday after it recorded double-digit growth in Q4 profitability. PFC which is also among the highest dividend yield PSU stock, has declared its final payout to the tune of Rs 2.5 per share for FY24.

PFC Q4 Results:

Consolidated profit attributable to owners of the company, stood at Rs 5,624.36 crore in Q4FY24, rising by 20.26% from Rs 4,676.71 crore in Q4FY23, while sequentially the growth was nearly 19% from Rs 4,727.40 crore in Q3FY24.

While its interest income stood at Rs 23,891.19 crore in Q4FY24, as compared to Rs 19,617.27 crore in Q4FY23, and Rs 23,283.63 crore in Q3FY24.

Total expenses in the quarter plunged sequentially to Rs 14,579.16 crore in Q4FY24, as against Rs 14,827.24 crore in Q3FY24. In the Q4 of FY23, expenses stood at Rs 12,312.29 crore.

FY24 PAT is at Rs 19,761.16 crore, higher from Rs 15,889.33 crore in FY23.

PFC Dividend:

The PSU dividend king, PFC has recommended a final dividend of Rs 2.50 per share, having a face value of Rs 10 each for FY24.

This is in addition to the interim dividends of Rs 11.00 per equity share (subject to deduction of TDS) for the FY 2023-24 already declared and paid during the year in three tranches. The final Dividend, if declared, will be paid within the statutory period of 30 days from the date of approval in the ensuing AGM.

In FY23, the company dividends up to 132.50% amounting to Rs 13.25 per share.

Currently, it has a dividend yield of 3.33%.

As per Trendlyne data, PFC has delivered up to 37 dividends since September 2007.

Apart from dividend payout, PFC also has a strong history of rewarding investors with free shares aka bonus issues. The last bonus issue was of 1:4 in September 2023, which followed a 1:1 bonus issue in August 2016.

PFC CFO Appointment:

Apart from earnings, and dividend recommendations, the PFC board of directors have approved the appointment of Sandeep Kumar, Executive Director, as the Chief Financial Officer (CFO) of the Company with immediate effect.

Parminder Chopra, Chairman & Managing Director holding Additional Charge of Director (Finance) earlier appointed as Chief Financial Officer.

PFC Share Price:

On BSE, the stock price ended at Rs 436.65 apiece, up by 3.6% after market hours on May 15. The company's market cap is at Rs 1,44,098.94 crore.

The stock is closing its gap towards its 52-week high of Rs 485.30 apiece.

YTD, PFC share price is up by 10.5%. While in a year, the stock zoomed by a whopping 226.4%.

Incorporated on July 16th, 1986, Power Finance Corporation Ltd. is a Schedule-A Maharatna CPSE and is a leading Non-Banking Financial Corporation in the Country. PFC's registered office is located in New Delhi and regional offices are located in Mumbai and Chennai.

PFC plays a crucial role in the rise of India as a global player. Increasingly, a country's development is gauged by measuring its energy usage. With a large fraction of our nation still, unfortunately, without any access to electricity, PFC will become an increasingly important factor in the years to come.