Massive: PFC posts highest ever net profit of Rs 8,444 crore for FY’21

New Delhi: Navratna power PSU, Power Finance Corporation (PFC) Limited on Tuesday announced its financial results for the financial year 2020-21. During the year the company recorded the highest ever net profit (PAT) of 8,444 crore.

Standalone 

PFC has registered 49 percent increase in the net profit (PAT) of Rs 8,444 crore against Rs 5,655 crore in the previous fascial (FY 2019-20). Net Interest Income has also gone up by 28 percent in FY'21 to Rs 12,951 crore against Rs 10,097 crore in FY'20. 

The Gross Non-Performing Assets (GNPA) ratio saw a sharp reduction of 238 bps from FY'20. The current GNPA ratio is at 5.70 percent against 8.08 percent in FY'20. Net non-performing assets (NPA) ratio also saw a sharp reduction of 171 bps from FY'20. The current Net NPA ratio is at 2.09 percent against 3.80 percent in FY'20 that is the lowest net NPA level in the past four years.

Aided by profit growth, PFC's net worth for FY'21 has gone up by 16 percent to Rs 52,393 crore and has crossed the fifty thousand mark. The capital adequacy ratio of the company has also improved sequentially to 18.83 percent as of March 31, 2021. The capital adequacy is at a comfortable level with sufficient cushion over and above the prescribed regulatory limits.

Consolidated 

During FY'21, PFC registered a 66 percent increase in consolidated net profit (PAT) of Rs 15,716 crore against Rs 9,477 crore in FY'21. Loan Asset book grew at 12 percent to Rs 7,45,189 crore as against Rs 6,67,330 crore in FY'20.

During the year PFC's consolidated net non-performance assets (NPA) ratio has also been reduced to 1.91 percent from 3.57 percent in FY'20. "It became possible due to the resolution of stressed assets and consolidated gross NPA ratio to 5.29 percent from 7.36 percent in FY'20 due to resolution of stressed assets," PFC said in an official statement.

PFC dividend announced

The Board of Directors of PFC Limited have recommended a final dividend of Rs 2 per share with the face value of Rs 10 per share for 2020-21. This is in addition to Rs 8 per share interim dividend for 2020-21 paid in March 2021.

Liquidity support to Discoms

Under the Aatma Nirbhar Discoms liquidity support announced by the GOI, PFC & its subsidiary REC combined together, have so far sanctioned Rs 1,34,782 crore and disbursed Rs 78,855 crore.

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Expressing satisfaction over the company's performance PFC's Chairman & Managing Director (CMD) RS Dhillon said, "I am extremely pleased with our FY'21 results despite the many headwinds faced during the year. The impressive performance in FY'21 as is evident from the highest ever profit underlines the inherent strengths of PFC in handling adverse economic events. Going forward also, we are committed to delivering long-term value to our shareholders."

While PFC's Director (Finance) Parminder Chopra commented, "I am happy to say that PFC has stayed profitable in each quarter of the FY 21 despite the COVID-19 pandemic. Even in an incredibly challenging year, PFC has delivered remarkable results and remains well-capitalized, well-provisioned & highly liquid with a strong balance sheet. Given, PFC's strong fundamentals, we remain optimistic about delivering such performance in future also.

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