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Power Finance Corp reports 32% YoY rise in Q2 net profit

NEW DELHI: State-owned Power Finance Corp. Ltd (PFC) on Thursday reported a 32% increase in its September quarter net profit to ₹2,759 crore.

PFC recently became the 11th Maharatna central public sector enterprise (CPSE), with the union government according it the coveted status that now provides the state-owned firm with greater operational and financial autonomy.

“Interim Dividend of ₹2.50 per share declared in Q2’22. Thus, so far PFC has given an interim dividend of Rs.4.75 per share i.e. 47.5%,” the statement said and added, “32% increase in Standalone Profit After Tax from Q2’21 – PAT at Rs. 2,759 cr. for Q2’22.vs.Rs.2,085 cr. for Q2’2,” the company said in statement.

PFC can now invest up to ₹5,000 crore, or 15% of its net worth, in a single project after its Maharatna status. This comes against the backdrop of the government using power sector lenders such as PFC and REC Ltd to instill financial discipline at state-owned electricity distribution companies (discoms).

“The Net NPA levels have dropped below 2 %. The net NPA ratio as on 30.09.2021 is 1.92%,which is the lowest in last 5 years,” the statement said.

For the June quarter, net profit was at ₹2,274 crore, up 34% on year. REC Ltd registered a 22% increase in its net profit to ₹2,247 crore for the quarter. The buyout of the government’s entire stake in REC Ltd by PFC in 2019 cleared the decks for the $80 billion lending institution.

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