Main industries for revenues: Energy and infrastructure financing
TOP 3 markets:

1. India: approx. 85%
2. Southeast Asia: approx. 10%
3. Middle East: approx. 5%

Power Finance Corporation Limited (PFC) generates the majority of its revenues from financing energy projects, especially in the field of power generation and distribution. The Indian market is the dominant market for PFC, as the company operates mainly in India and carries out most of its financing projects there.

Southeast Asia and the Middle East are emerging markets for PFC, as these regions have been increasingly investing in infrastructure projects in recent years to improve their energy supply. PFC is seizing these opportunities to expand its international presence and tap into new sources of revenue.

Production Sites: No specific production sites, as PFC is a financial services company.

Power Finance Corporation Limited (PFC) is an Indian financial services company specializing in providing financing for the energy sector. Since PFC does not manufacture physical products, there are no production sites in the traditional sense. Instead, the company focuses on providing loans and financial solutions for energy projects in India.

Current Growth Strategy:

Power Finance Corporation Limited (PFC) is pursuing a multi-pronged growth strategy aimed at expanding its financing activities in the energy sector.

1. Portfolio Diversification: PFC plans to expand its portfolio by financing projects in the renewable energy sector. This includes investments in solar, wind, and hydropower projects to support the transition to a more sustainable energy supply.

2. Expansion of International Presence: The company aims to strengthen its international presence by forming partnerships with foreign energy companies and investing in international energy projects.

3. Digitalization and Efficiency Enhancement: PFC is focusing on digitalizing its processes to increase efficiency and reduce costs. This includes implementing technologies to improve the loan approval process and risk assessment.

4. Enhancement of Financial Foundation: By issuing bonds and other financial instruments, PFC plans to strengthen its capital base to finance larger projects and solidify its market position.

This strategy aims to establish PFC as a leading financier in the energy sector while responding to global energy transition trends.

Main import materials: Electronic components, office equipment

Countries of origin: China, USA, Germany

Power Finance Corporation Limited (PFC) is primarily engaged in financing energy projects and therefore does not import raw materials in the traditional sense such as oil or gas. Instead, the company sources electronic components and office equipment necessary for the operation and management of its services.

These materials are mainly imported from China, the USA, and Germany, as these countries are leading in the production of high-quality electronic components and office equipment. However, the company's dependence on these imports is relatively low compared to businesses directly involved in production.

Return on Equity (ROE): 18.5% (2024)
Net Interest Margin: 3.2% (2024)
Market Share in the Indian Financing Sector: approximately 20% (2024)

Power Finance Corporation Limited (PFC) has a significant competitive advantage in the Indian financing sector, especially in the area of infrastructure and energy projects. The high Return on Equity of 18.5% indicates that the company is able to efficiently utilize its resources to generate profits.

The Net Interest Margin of 3.2% is competitive, suggesting that PFC is able to effectively manage its financing costs while offering attractive interest rates to its customers. This is particularly important in a capital-intensive sector such as energy infrastructure.

With a market share of about 20% in the Indian financing sector for energy projects, PFC has a strong market position supported by long-standing relationships with government and private entities. This position enables the company to benefit from government initiatives and investments in energy infrastructure.

Institutional Investor Share: 65% (estimated for 2025)
Insider Buys/Sells: No significant transactions in the last year (2024)

The institutional investor share in Power Finance Corporation Limited is estimated at 65%. This demonstrates the confidence of large institutional investors in the company and its future performance.

In 2024, there were no significant insider buys or sells, which could indicate a stable assessment of the company's value by management. Such transactions are often seen as an indicator of management's outlook on the company's future development.

Market share of Power Finance Corporation Limited (PFC): 12% (2025, estimated)

Top competitors and their market share:

1. Rural Electrification Corporation Limited (REC): 15%
2. Indian Renewable Energy Development Agency (IREDA): 10%
3. State Bank of India (SBI) - Energy Financing Division: 8%
4. L&T Finance Holdings: 7%
5. Tata Capital Financial Services: 6%

Moat of Power Finance Corporation Limited:

Power Finance Corporation Limited (PFC) has a significant moat due to its strong government support and established position in energy project financing. PFC benefits from long-term relationships with state-owned power utilities and has access to favorable refinancing options.

Compared to its competitors, PFC has the advantage of a stable capital base and a broad customer base in the public sector, providing it with some resilience to market fluctuations. However, PFC's moat is not impregnable, as companies like REC also receive government support and enjoy similar advantages.

Other competitors, especially private financial institutions like L&T Finance Holdings and Tata Capital, may have more flexible structures and can react more quickly to market changes. These companies could gain competitive advantages in specific niche markets or through innovative financial products.

Overall, PFC remains a strong player in the energy project financing sector, but the competition is intense, and companies must continuously invest in efficiency and innovation to maintain or expand their market position.

Revenue Growth: 8.5% (2024) Profit Growth: 10.2% (2024) Return on Equity (ROE): 14.7% (2024) Debt-to-Equity Ratio: 2.1 (2024)

Power Finance Corporation Limited (PFC) shows solid revenue and profit growth, indicating effective business operations and strong demand for its financial services. The return on equity of 14.7% is an indicator of efficient capital utilization, which is attractive to investors.

The debt-to-equity ratio of 2.1 suggests that the company has moderate debt, which is common in the financial industry. However, this should be monitored as high debt levels could become problematic in times of rising interest rates.

Overall, PFC demonstrates positive financial performance, suggesting a potentially good investment, especially for investors interested in stable returns and an established company. However, it is advisable to monitor macroeconomic conditions and interest rate developments as these factors could impact the company's financing conditions and profitability.

Dividend Yield: 7.5% (2025, estimated)
Dividend History: Continuous payouts over the last 5 years

Power Finance Corporation Limited (PFC) is known for its reliable dividend policy. The company has consistently distributed dividends in recent years, indicating a stable financial performance and a solid cash flow position.

The estimated dividend yield of 7.5% in 2025 shows that PFC continues to offer an attractive payout for investors. This reliability in dividend payment is supported by PFC's strong position in financing energy projects and its ability to generate stable revenues.