New Delhi (25.05.2022): Power Finance Corporation (PFC) announced a double-digit growth of 10% in the consolidated net profit to Rs 4,295.90 crore in the March quarter mainly on the back of higher revenues versus Rs 3,906.05 crore in the year-ago period.
A PFC press statement said the consolidated net profit of the company was Rs 693.71 crore in the quarter ended March 31, 2020.
Total income in the quarter rose to Rs 18,873.55 crore from Rs 18,155.14 crore in the same period a year ago.
The consolidated net profit in FY22 rose to Rs 18,768.21 crore from Rs 15,716.20 crore in FY21.
Total income in the fiscal year increased to Rs 76,344.92 crore from Rs 71,700.67 crore in 2020-21.
The company's board has recommended a dividend of Rs 1.25 per equity share with a face value of Rs 10 each for the fiscal year 2021-22. This is in addition to interim dividends of Rs 10.75 per share for 2021-22, which are already paid by the company.
R.S. Dhillon, CMD Remarks - PFC’s CMD commented: I am happy to share that during this financial year, PFC has hit yet another milestone by delivering the highest annual profit ever of Rs.10,022 cr. PFC continues to stick to its commitment to share its success with the shareholder and accordingly, during the year, PFC has distributed nearly 32% of its profit through dividends to its shareholder. On the business front, the power sector is still reeling under the impact of the COVID pandemic as a result our loan asset book grew marginally. However, we are optimistic that with the economic activity bouncing back to its pre-covid level, PFC’s business activity would start picking up momentum.
Parminder Chopra, Director (Finance) Remarks - PFC’s Director (Finance) said that despite a challenging environment, PFC has delivered historically high annual profits in FY 22. PFC during the year focused on building its capital buffer and creating a resilient balance sheet to tackle the adverse economic scenario. I believe that in the future also, PFC will continue to work through the consequences of the pandemic and register profitable growth.
About the pandemic, the company said that there will not be a 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.
On a consolidated basis, it recorded a reduction in consolidated net NPA (bad loans) ratio to 1.91 percent in FY21 from 3.57 percent in FY20 due to the resolution of stressed assets.
Besides, it also recorded a reduction in consolidated Gross NPA (nonperforming assets) ratio to 5.29 percent in FY21 from 7.36 percent in FY20 due to the 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.