PFC tumbles 2% on transfer of subsidiaries to Power Grid
On September 28, Power Finance Corporation (PFC) faced a decline in its stock price by over 2 percent during the morning trading session. This dip in share value came in response to the announcement of PFC’s transfer of its subsidiaries, Ananthpuram Kurnool Transmission Limited and Bhadla III Transmission Limited, to Power Grid Corporation of India.
Interestingly, Power Grid Corporation of India’s stock experienced a different trajectory, with a gain of 0.8 percent during the same trading period.
The transfer of these subsidiaries, as disclosed in a regulatory filing, encompasses Ananthpuram Kurnool Transmission Limited. This subsidiary was established with the specific purpose of developing a transmission scheme linked to a solar energy zone spanning Ananthapuram (Ananthapur) (2500 MW) and Kurnool (1000 MW) in the state of Andhra Pradesh. This move likely represents a strategic realignment within the power sector in India, reflecting changes in business focus and objectives for both PFC and Power Grid Corporation of India, which can impact their stock performances and market dynamics.
Additionally, Bhadla III Transmission Limited was established for the development of the transmission system for the evacuation of power from Renewable Energy Zone (REZ) in Rajasthan (20 GW) under Phase III-Part B1. These transfers reflect strategic moves within the power sector in India, and stock prices can react to such developments based on market sentiment and investor perception.
On September 27, Power Finance Corporation (PFC) experienced a significant gain of almost 6 percent following the announcement of a Memorandum of Understanding (MoU) with Punjab National Bank (PNB) for the development of infrastructure and power projects. This collaboration likely boosted investor confidence and contributed to the positive movement in PFC’s stock price.
In the quarter ending June 2023, Power Finance Corporation (PFC), a state-owned Non-Banking Financial Company (NBFC), posted impressive financial results. Notably, the company reported a substantial year-on-year increase in net profit, with a remarkable growth rate of 30.6 percent, bringing the net profit for the quarter to Rs 5,982.14 crore. This robust profit growth underscores PFC’s effective financial management and performance during this specific period.
Additionally, the company demonstrated its commitment to asset quality by achieving a noteworthy reduction in Non-Performing Assets (NPAs). Net NPAs reached their lowest level at just 1 percent, marking a significant improvement from the 1.57 percent recorded in Q1 FY23. Gross NPAs also saw a substantial decline, dropping by 148 basis points from 5.02 percent in Q1 FY23. These financial achievements highlight PFC’s efforts to maintain a healthy financial position and manage asset quality effectively.
As of 11:11 am, Power Finance Corporation (PFC)’s stock was trading at Rs 248 on the National Stock Exchange, indicating a slight decline of 0.66 percent from the closing price of the previous trading day. It’s important to note that stock prices can indeed fluctuate throughout the trading day due to a variety of factors.
Market sentiment, news developments related to the company or the industry, economic indicators, and investor activity are among the key factors that can influence stock prices. Investors and traders closely monitor these factors to make informed decisions about buying or selling stocks. The minute-to-minute changes in stock prices reflect the dynamic nature of financial markets.
