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PFC Q1 Consolidated PAT up 23 percent at Rs 3,557 Crore

India's largest NBFC in power sector state-run Power Finance Corporation has posted a robust 23 percent rise in profit after tax in Q1FY'21

PFC posts 23 percent increase at Rs 3,557 crore in Consoidated Profit After Tax (PAT) in Q1FY'21
  • PFC posts a 23% increase at Rs 3,557 crore in Consolidated Profit After Tax (PAT) in Q1 result of FY'21

  • PFC reports a 16% increase in Consolidated Revenue from Operations for Q1FY'21 at Rs 16,914 crore

  • The Non-performing assets ratio (NPA) of PFC drops from 4.20% in Q1’20 to 3.15% in Q1’21

New Delhi: (Power sector news) India's largest NBFC in power sector state-run Power Finance Corporation has posted a robust 23 percent rise in profit after tax during the quarter ended June 30, helped by a rise in income. In the same quarter last year i.e. FY'20 PFC had posted a net profit of Rs 2,899.74 crore, PFC said in a regulatory filing. The Consolidated Revenue, that is the total income from operations rose to Rs 16,932.24 crore during the quarter under review from Rs 14,605.12 crore a year ago. The state-run NBFC has reported a significant reduction in the consolidated net NPA ratio from 4.20% in Q1’20 to 3.15% in Q1’21 due to resolution of stressed assets.

Company's standalone Profit After Tax too saw a 23% jump at Rs 1,700 crore. Standalone PAT was 1,383 crore in Q1’20. Two stressed assets of the company, Essar Power Transmission Ltd. & Suzlon Energy Ltd finally saw resolution which brought down the net NPA of PFC 124 bps from Q1’20. Total expenses stood at Rs 12,311.18 crore as against Rs 10,553.42 crore in April-June 2019.

Read this too: GAIL records 80% drop in PAT in Q1 FY2020-21 at Rs 256 crore

These are the first results of the company published under the PFC CMD Ravinder Singh Dhillon, who assumed charge on June 1. The company in a press statement issued on Thursday said "Even in a challenging operating environment, key financial indicators maintained within a stable range. Net Interest Margin on earning assets for Q1’21 at 3.48 percent as against 3.06 percent in Q1’20." The company has a comfortable liquidity position to meet the debt obligations and future business growth, the statement added. PFC & REC has so far sanctioned more than Rs 60,000 crore under the Rs 90,000 crore Discoms liquidity support announced by the GOI under the Aatma Nirbhar Bharat Abhiyaan. 

PFC, functioning under the administrative control of the Ministry of Power, is the largest non-banking financial company (NBFC) in the power sector in India.

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