PTC India Financial Services reports 34% profit surge in Q3FY25 amid strong loan growth
PTC India Financial Services Limited (PFS), a leading financial services provider in infrastructure lending, has reported a 34% year-on-year (YoY) increase in net profit for the third quarter of fiscal year 2024-25 (Q3FY25). The company’s profit after tax (PAT) reached ₹67.14 crore, a significant rise from ₹50.37 crore in Q3FY24. This growth comes amid higher loan disbursements, improved return on assets, and enhanced portfolio quality.
The company’s total income for the quarter remained stable at ₹158.12 crore, indicating consistent revenue generation despite market fluctuations. PFS attributed its strong performance to increased infrastructure financing, a strategic focus on sustainable lending, and proactive risk management measures.
Loan disbursements for Q3FY25 soared to ₹300 crore, marking an 86% rise from ₹161 crore in Q3FY24. The significant expansion in its loan portfolio reflects heightened demand for project financing and an increasing focus on green energy investments.
How has PFS improved its profitability and return on assets?
PTC India Financial Services continues to demonstrate financial resilience, with its return on net worth (RoNW) reaching 10.09% in Q3FY25, up from 8.11% in Q3FY24. Similarly, the return on assets (ROA) rose to 4.51%, a notable increase from 2.69% last year. These metrics highlight the company’s ability to optimise capital efficiency and enhance profitability while maintaining asset quality.
The yield on earning portfolio for the quarter stood at 11.42%, a slight improvement from 11.38% in the previous year. This indicates that PFS is effectively managing interest rates on its loan portfolio, ensuring a stable revenue stream.
What steps has PFS taken to strengthen asset quality?
A key highlight of Q3FY25 was the substantial improvement in asset quality, with Net Stage III assets declining to ₹280 crore from ₹329 crore in Q3FY24. This reduction underscores effective risk management and a proactive approach to handling stressed assets.
The Provision Coverage Ratio (PCR) for Stage III assets also saw an increase, rising to 62.63% from 57.64% last year. This reflects PFS’s commitment to maintaining a strong financial buffer against potential credit losses, reinforcing its reputation as a stable and secure financial services provider.
How did PTC India Financial Services perform over the nine-month period ending December 2024?
For the nine months ending December 31, 2024 (9M FY25), PFS reported a profit after tax of ₹158.89 crore, an 8.2% increase from ₹146.91 crore in the same period last year. The company’s loan disbursements for the period surged to ₹866 crore, compared to ₹570 crore in 9M FY24, reflecting sustained demand for infrastructure financing.
The yield on earning portfolio improved to 11.44%, up from 10.95% in 9M FY24, further supporting the company’s revenue growth. Additionally, the annualised return on net worth rose to 8.09%, compared to 7.89% last year, while ROA increased to 3.41% from 2.72%, signalling continued operational efficiency and profitability.
What is PFS’s long-term strategy for growth?
PTC India Financial Services has been actively pivoting towards sustainable infrastructure financing, aligning with India’s push for green energy and clean technology investments. The company has been reducing its exposure to legacy thermal and hydro loans while expanding into renewable energy, electric mobility, and distributed infrastructure financing.
The management has emphasised that a diversified loan book, strong internal processes, and a commitment to sustainable lending will drive future growth. With government-backed infrastructure initiatives and increased private sector participation, PFS is well-positioned to capitalise on India’s expanding infrastructure finance market.
What does the future hold for PFS in the infrastructure finance sector?
PTC India Financial Services is expected to continue its growth trajectory, benefiting from rising infrastructure investments, improving asset quality, and a diversified lending approach. The company remains optimistic about resolving stressed assets over the coming months while maintaining a robust risk management framework.
A spokesperson for PFS stated, “We are committed to building a customer-centric financial ecosystem that prioritises sustainability, resilience, and long-term value creation. As green energy and infrastructure financing become critical to India’s economic strategy, we will continue to enhance our portfolio with projects that align with the country’s sustainability goals.”
With a strong financial foundation, an improving loan portfolio, and a focus on emerging sectors, PTC India Financial Services is positioned to remain a key player in India’s infrastructure finance landscape.
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