Power Finance Corporation Q3 net profit rises 20% to Rs 6,294 crore

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New Delhi: State-owned Power Finance Corporation on Thursday said it has 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, according to a BSE filing.

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, the filing said.

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 loans) 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 Group 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.

"We have achieved a 26 per cent Y-o-Y jump in 9M'24 Profit After Tax coupled with impressive double-digit loan growth of 16 per cent," Parminder Chopra, Chairman and Managing Director with an additional charge of Director (Finance), said in the statement.

With the RBI approval received last month, the company will venture into IFSC GIFT City by establishing its wholly-owned subsidiary, Chopra said.