Power Finance Corporation June quarter profit rises slightly to Rs 4,580 Crore
On Friday, state-owned Power Finance Corporation (PFC) recorded a marginal increase in its consolidated net profit to Rs 4,579.53 crore for the June quarter 2022-23.
The company’s net profit was Rs 4,554.98 crore in the prior year period, according to a BSE filing.
Total revenue was Rs 18,544.04 crore compared to Rs 18,970.39 crore in the same period a year ago.
The Board, at its meeting held on Friday, approved an interim dividend of Rs 2.25 per share with a face value of Rs 10 each for 2022-23.
September 3, 2022 will be the “record date” for the purposes of determining the eligibility of shareholders for the payment of the interim dividend.
The date of payment/sending of the interim dividend will be September 11, 2022 at the latest.
The board also approved the subscription of a 50% stake not exceeding Rs 50 crore in PFC Projects Ltd (PPL) for the recovery of stressed assets / NPAs (bad loans) in the power sector, subject required approvals.
PPL is an energy asset management company. On August 12, 2022, PFC’s Board of Directors approved the formation of Power Asset Management Company (PAMC) to take over the Power Assets Under Power/NPA.
The creation of PAMC is subject to further approval by the Ministry of Energy and other authorities. PAMC will be a joint venture between PFC and REC with an equal 50:50 share.
The REC’s Board of Directors on August 5, 2022 approved the proposal to subscribe to 50% of the capital of PAMC.
PAMC will be a professional organization that will have the expertise to acquire energized energy assets, operate them, maintain them and supplement them if necessary.
The company said in a statement that sustained resolution efforts caused standalone net NPA levels to fall below 2%, the lowest in 5 years.
The net NPA ratio was 1.73% for Q123, compared to 2% for Q122.
The 23 basis point reduction in the consolidated net NPA ratio from 1.80% in Q122 to 1.57% in Q123 is due to the resolution of distressed assets. PTI KKS KKS ANU ANU
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