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State-owned non-banking financial firm Power Finance Corporation (PFC) records highest ever net profit of 8,444 cr for FY 21, up 49% on Y-o-Y basis.
· Highest Annual PAT of Rs.8,444 cr.
· 49% jump in Standalone Profit After Tax from FY ’20 . PAT at Rs.8,444 cr. for FY’21. Vs Rs.5,655 cr. in FY ’20
· 28% increase in Net Interest Income from FY’20 – Net Interest Income at Rs. 12,951 cr. for FY’21 vs.Rs.10,097 cr. in FY ’20
· Dividend of Rs.2 declared per share. Thus, in FY 21, PFC has given a total dividend of Rs. 10 per share i.e. 100%.
· Aided by profit growth, PFC’s net worth for FY 21 is up by 16% to Rs.52,393 cr. and has crossed the fifty thousand mark.
· 25% Stressed Book Resolved in FY 21:
o Gross NPA ratio saw a sharp reduction of 238 bps from FY’20. The current GNPA ratio is at 5.70% against 8.08% inFY’20.
o Lowest Net NPA levels in past 4 years. Net NPA ratio saw a sharp reduction of 171 bps from FY’20. The current Net NPA ratio is at 2.09% against 3.80% in FY’20.
· The Capital Adequacy Ratio of the Company has also improved sequentially to 18.83% as on 31st March 2021. The capital adequacy is at a comfortable level with sufficient cushion over & above the prescribed regulatory limits.
FY’21 Vs FY’20
· 66% increase in consolidated Profit After Tax from FY’20 – PAT at Rs. 15,716 cr. for FY’21 vs. Rs.9,477cr. for FY’20.
· Loan Asset book grows at 12% – Loan asset book for FY 21 at Rs.7, 45, 189 cr. vs. Rs.6,67,330 cr. in FY’20
· Reduction in consolidated net NPA ratio to 1.91% in FY 21 from 3.57% in FY’20 due to resolution of stressed assets.
· Reduction in consolidated Gross NPA ratio to 5.29% in FY 21 from 7.36% in FY’20 due to resolution of stressed assets.
Ø Liquidity support to Discoms under Aatma Nirbhar Bharat Abhiyaan
· 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 cr. and disbursed Rs.78,855 cr.
Ø Management Comments
· Mr. R.S. Dhillon, CMD Remarks – PFC’s CMD commented that 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 deliver long-term value to our shareholders.
· Ms. Parminder Chopra, Director (Finance) Remarks – PFC’s Director (Finance) commented that I am happy to say that PFC has stayed profitable in each quarter of the FY 21 despite the COVID pandemic. Even in an incredibly challenging year, PFC has delivered remarkable results & remains well capitalized, well provisioned & highly liquid with a strong balance sheet. Given, PFC’s strong fundamentals, we remain optimistic on delivering such performance in the future also.