PFC posts multifold jump in net profit to Rs 3,906 crore in March quarter

The firm's board has recommended a final dividend of Rs 2 per share with the face value of Rs 10 per share for 2020-21.

State-run Power Finance Corporation on Tuesday posted a multifold jump in its consolidated net profit to Rs 3,906.05 crore in the January-March quarter mainly on the back of higher revenues.

The consolidated net profit of the company was Rs 693.71 crore in the quarter ended on March 31, 2020, a BSE filing said.

Total income of the company rose to Rs 18,155.14 crore in the quarter from Rs 16,254.65 crore in the same period a year ago.

The consolidated net profit in 2020-21 is Rs 15,716.20 crore compared to Rs 9,477.25 crore in 2019-20. Total income in the fiscal rose to Rs 71,700.51 crore from Rs 61,275.36 crore in 2019-20.

The board has recommended a final dividend of Rs 2 per share with the face value of Rs 10 per share for 2020-21. This is in addition to Rs 8 per share interim dividend for 2020-21 paid in March 2021.

About the pandemic, the company said that there will not be significant impact of this outbreak in continuing its business operations, in maintaining its financial position and in its ability to continue as a going concern.

Under the Aatmanirbhar discoms liquidity support announced by the Government of India, the PFC & its subsidiary REC combined together, have so far sanctioned Rs 1,34,782 crore and disbursed Rs 78,855 crore.

R S Dhillon, the Chairman and Managing Director of PFC, said, "I am extremely pleased with our FY 21 results despite the many headwinds faced during the year. The impressive performance in FY21 as is evident from the highest ever profit, underlines the inherent strengths of PFC in handling adverse economic events. Going forward also, we are committed to deliver long-term value to our shareholders."

On a consolidated basis, it recorded reduction in consolidated net NPA (bad loans) ratio to 1.91 per cent in FY21 from 3.57 per cent in FY20 due to resolution of stressed assets.

Besides, it also recorded a reduction in consolidated Gross NPA (non performing assets) ratio to 5.29 per cent in FY21 from 7.36 per cent in FY20 due to resolution of stressed assets. It has also clocked the highest ever standalone net profit or profit after tax of Rs 8,444 crore in 2020-21, it stated.