PFC beats expectations, reports 23 pc jump in profit

New Delhi, Aug 13 (IANS) Amid rising stress in the power sector with faltering demand and increasing indebtedness, State-owned power sector NBFC, Power Finance Corporation (PFC) has reported a handsome recovery in its fortunes clocking growth both in its topline and bottomline in the COVID-19 affected April-June quarter.

The company, which along with REC is implementing government’s Rs 90,000 crore liquidity schemes for financially stressed discoms, has reported 23 per cent increase in its consolidated net profit to Rs 3,557 crore in the quarter ending June 30 of current financial year as compared to Rs 2,900 crore net profit reported in first quarter period of previous fiscal.

During the quarter, the company also witnessed 16 per cent increase in consolidated revenue from operations at Rs 16,914 crore as against Rs 14,595 crore for Q1 FY20.

The company not only improved its topline and bottomline but has also seen reduction in consolidated net NPA ratio from 4.20 per cent in Q1FY20 to 3.15 per cent in Q1FY21 due to resolution of stressed assets. Net NPA also dropped by 124 bps from last year due to resolution of two stressed assets i.e. Essar Power Transmission Ltd. And Suzlon Energy Ltd.

The company’s Net NPA ratio as on June 30 is at 3.41 per cent as compared to 4.65 per cent in Q1FY20, the lowest in the last 4 years.

On a standalone basis the company reported 23 per cent jump in net profit to Rs 1,700 crore.

–IANS

sn/sdr/