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PFC Q3 net profit rises 20% to Rs 6,294 cr

By IndianMandarins- 09 Feb 2024
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New Delhi (09.02.2024): Power Finance Corporation posted an over 20 per cent rise in its consolidated net profit to Rs 6,294.44 crore in the December quarter, on the back of higher revenues. The company's consolidated net profit was Rs 5,241.10 crore in the quarter ended on December 31, 2022. Total income in the quarter rose to Rs 23,593.40 crore from Rs 19,662.65 crore in the same period a year ago. 
The board, in its meeting on Thursday, approved the declaration of a second interim dividend at the rate of 35 per cent, of Rs 3.50 per equity share, subject to deduction of TDS, on the face value of the paid-up equity shares of Rs 10 each for FY 2023-24. The date of payment /dispatch of the interim dividend shall be on or before March 9, 2024.
In a separate statement, the company said, it has registered a 19 per cent rise in consolidated loan asset book from Rs 8,04,526 crore as on December 31, 2022, to Rs 9,54,483 crore as on December 31, 2023.
Owing to concentrated resolution efforts, consolidated net NPA (bad debt) has reached its lowest level at 0.86 per cent during April-December 2023 from 1.15 per cent in the same period a year ago.
Gross NPA also declined significantly by 78 basis points from 3.91 per cent in the nine-month period of the last fiscal to 3.13 per cent in April-December 2023· PFC is the nodal agency for the implementation of Late Payment Surcharge Rules.

With the implementation of these rules, there has been more than a 60 per cent reduction in the legacy dues which were payable by Discoms to Generation companies. Under this, PFC group has cumulatively disbursed Rs 74,073 crore till date. Parminder Chopra, Chairman and Managing Director with additional charge of Director (Finance) said, “We have achieved 26 per cent Y-o-Y jump in 9M’24 Profit After Tax coupled with impressive double digit loan growth of 16%. This underscores our commitment to consistent performance.”

Consolidated Financial Highlights
PFC Group reported PAT of Rs. 18,905 crores in 9M’24 vis-à-vis Rs. 15,050 crores in 9M’23, an increase of 26%. 
Consolidated Net worth (including  non-controlling interest) increased by 20% from Rs. 1,06,143 crores as on 31.12.2022 to Rs. 1,27,841 crores as on 31.12.2023
19% growth registered in consolidated loan asset book from Rs. 8,04,526 crores as on 31.12.2022 to Rs. 9,54,483 crores as on 31.12.2023
Owing to concentrated resolution efforts, consolidated Net NPA has reached its lowest level at 0.86% in 9M’24 from 1.15% in 9M’23. Gross NPA also declined significantly by 78 bps from 3.91% in 9M’23 to 3.13% in 9M’24.
PFC Group is the nodal agency for implementation of Late Payment Surcharge Rules. With the implementation of these rules, there has been more than 60% reduction in the legacy dues which were payable by Discoms to the Generation companies. Under this, till date, PFC group has cumulatively disbursed Rs. 74,073 crores.

Stand Alone Financial Highlights
26% notable increase registered in Standalone Profit After Tax from Rs. 8,113 crores in 9M’23 to Rs. 10,232 crores in 9M’24.
12% increase in Stand alone Profit After Tax from Rs. 3,005 crores in Q3’23 to Rs. 3,377 crores in Q3’24.
In Q3’24, PFC board declared an interim dividend of Rs.3.5 per share, bringing the cumulative interim dividend to Rs. 8 per share
1.7 times impressive increase in disbursements-from Rs. 46,968 crores in 9M’23 to Rs. 79,049 crores in 9M’24, driven by disbursements in distribution sector and renewable energy sector. 
Double-digit growth of 16% witnessed in loan asset book- from Rs. 3,93,387 crores as on 31.12.2022 to Rs.4,57,027 crores as on 31.12.2023.
CRAR as on 31st Decmeber, 2023 is at 26.86%, with Tier 1 capital at 24.28%. PFC continues to have comfortable capital adequacy levels.
18% increase in net worth from Rs. 65,289 crores as on 31.12.2022 to Rs. 76,780 crores as on 31.12.2023.
In Q3’24, PFC successfully reached resolution in Dans Energy loan of Rs. 413 crores. With this, PFC’s Net NPA ratio reaches below 1% and is at 0.90%- the lowest level in last 6 years.

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