PSU Results: PFC springs a surprise, lower costs aid RITES margin

Four out of the seven state-run companies scheduled to report results today, have come out with their results so far on Wednesday, August 6.RITES, HUDCO and PFC have reported results, while the street awaits results from BHEL and Balmer Lawrie.

Lets look at these names individually:

BHEL

A CNBC-TV18 poll expects profitability to return this quarter, compared to a net loss last year, while revenue is slated to go up by 22%.Ordering activity will be the key with brokerages like Axis Capital and Nuvama pegging the figure to be ₹15,000 crore and ₹11,000 crore respectively, compared to ₹9,488 crore during the same quarter last year.

Shares of BHEL ended 3% higher on Tuesday, and have gained 6.6% so far in 2025.

IRCON

Shares of IRCON International have declined 10% in the last one month and are trading 20% lower on a year-to-date basis so far.

IRCON’s revenue declined by 1% from last year, while margins expanded by 100 basis points year-on-year during the March quarter.

At the end of financial year 2025, the company’s order book stood at ₹27,208 crore.

RITES

The railway PSU reported results that were nearly unchanged on both the topline and bottomline front.

However, marginally lower expenses led to the company’s EBITDA growing by 7.8% from last year to ₹114.8 crore, while margins expanded 150 basis points to 23.3% from 21.8%.

Shares of RITES had a choppy session after the earnings announcement ending 0.9% lower at ₹255.5.

PFC

For PFC, negative credit costs came as a positive surprise for the state-run power financier, thereby contributing to its profitability.

Net Interest Income growth was higher than expectations, coming in at 16%, while profitability was also boosted by negative provisions of ₹680 crore.

Asset quality also remained stable with Gross NPA at 1.92% from 1.94% in March and Net NPA at 0.38% from 0.39% in March.

Shares of PFC ended 0.6% higher post the earnings announcement at ₹416.1.

Hudco is the best

HUDCO’s Net Interest Income (NII) or core income for the quarter increased by 32% from the same quarter last year to ₹961 crore from ₹724.7 crore.

Asset quality saw improvement on a sequential basis. Gross NPA at the end of the June quarter stood at 1.34% from 1.67% in March, while Net NPA improved to 0.09% from 0.25% in March.

Shares of HUDCO ended at the lows of the day ahead of the results announcement, ending 3.2% lower at ₹211.65. The stock is down 33% from its recent 52-week high of ₹312.