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Power Finance Corporation net profit up 28% at Rs 4,554 cr in June quarter

State-run Power Finance Corporation (PFC) on Thursday posted an over 28 per cent jump in its consolidated net profit at Rs 4,554.98 crore in the June 2021 quarter, mainly due to higher revenues.

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Power Finance Corporation (PFC) | Q1 results

Press Trust of India  |  New Delhi 

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State-run on Thursday posted an over 28 per cent jump in its consolidated net profit at Rs 4,554.98 crore in the June 2021 quarter, mainly due to higher revenues.

Its consolidated net profit was Rs 3,557.23 crore in the quarter ended June 30, 2020, a BSE filing said.

Total income in the quarter under review rose to Rs 18,973.93 crore from Rs 16,932.24 crore in the same period a year ago.

The board in its meeting on Thursday also approved interim dividend at the rate of Rs 2.25 per equity share (subject to deduction of TDS) on the face value of the paid-up equity shares of Rs 10 each for 2021-22.

Further, it also informed that "Wednesday, 1st September, 2021 shall be reckoned as the 'Record Date' for the purpose of ascertaining the eligibility of shareholders" for payment of interim dividend for 2021-22.

The capital adequacy ratio of the company was 21.16 per cent as on June 30, 2021. The capital adequacy is at a comfortable level with sufficient cushion over and above the prescribed regulatory limits, it stated.

With the objective to fortify the balance, provisioning coverage on Stage III (NPA or bad loan) Assets enhanced to 65 per cent. This has resulted in lowest net NPA (bad loan) levels of 2 per cent in the past 3 years.

Revamped Distribution Sector Scheme with an outlay of Rs 3,03,758 crore provides significant business opportunity to the PFC going forward. PFC along with our subsidiary REC have been designated as nodal agencies for facilitating implementation of the Scheme, it stated.

Its loan asset book grows at 9.5 per cent. Loan asset book for Q1FY'22 (April-June 2021) stood at Rs 7,49,373 crore versus Rs 6,84,383 crore in Q1FY'21 (April-June 2020).

It witnessed reduction in consolidated net NPA (boad loan) ratio to 1.80 per cent in Q1FY'22 (April-June 2021) from 3.15 per cent in Q1FY'21 (April-June 2020) due to resolution of stressed assets.

Under the Aatmanirbhar discoms liquidity support announced by the Government of India, the PFC and its subsidiary REC Ltd combined together have so far sanctioned Rs 1,35,537 crore and disbursed Rs 79,678 crore.

PFC Chairman and Managing Director R S Dhillon said in a statement, "We have registered 34 per cent increase in our profits, and our performance this quarter once again showcases the inherent strength of PFC's strong business. I am also particularly pleased that with our consistence performance, we have been able to provide dividend return to our shareholders in the first quarter itself."

"Also, we are glad to be a strategic partner with GoI (Government of India) for implementation of Revamped Distribution Sector Scheme, which is a step forward in creating sustainable discoms. The scheme also presents us a good opportunity to grow our business further," he added.

Parminder Chopra, Director (Finance) PFC, said, "I am happy to say that our financial performance has been good, with robust revenues and profitability. As we look forward to an increasingly normal environment, we are committed to delivering strong performance in future also. Taken together, the business opportunities going forward and the strength of our business presents a promising picture for PFC's future.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Thu, August 12 2021. 17:02 IST
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