PFC Q4 Profit slides by 19%, NPAs increase

One of the key lenders to the power sector, Power Finance Corporation (PFC) posted a decline in profit by 19.3% to Rs 1259.6 crore for the quarter ended March 31, 2016. The profit in corresponding quarter in FY15 was Rs 1560.7 crore. The total income during the same period increased to Rs 6,787 crore in Q4FY16 from Rs 6,422.4 crore in Q4FY15, said the company in a BSE filing.

“Gross NPAs rose to 3.15% (Q3: 1.89%) as three restructured accounts worth Rs 27.5billion slipped into NPAs. As per management, all NPAs relate to the private sector, 25% of which pertain to projects already commissioned, 36% to projects set to commission in FY17 and the balance to projects under construction and require fund infusion from promoters,” said Religare Institutional Research.

Business Standard had earlier reported that loan sanction of PFC has come down by 41% from 2012-13 to Rs 44,328 crore in the last fiscal. The loan disbursement also showed a similar downward trend for PFC with it sliding by 27% in past four financial years.

Religare further said it expects continued pressure on loan growth and margins of PFC along with further asset quality deterioration over the next 2-3 years.

On an annual basis, the company has posted a net profit of Rs 6113.4 crore for the year ended March 31, 2016 as compared to Rs. 5959.3 crore for the year ended March 31, 2015. Total income increased by 10% during the same period to Rs 27564.3 crore in FY16.