PFC records 37% jump in Q3 earnings; 36% growth in loan sanction

PFC CMD MK Goel

STATE-owned Power Finance Corporation’s (PFC) net profit rose 37.35 percent to Rs 1534.31 crore on 24.2 percent increase in operating income to Rs 5547.16 crore in Q3 December 2013 compared to the same period last year. The Navaratna PSU’s loan sanctions for the current quarter increased by 36 percent to Rs 24,629 crore from Rs 18,144 crore, said a press release. Some of the major projects sanctioned during the quarter include...

Rs 4,555 crore to 800MW TPS at Bhoopalpally and Rs 3,746 crore to 660 MW TPS (Ext) at Ramagundam (both under AP Power Generation Corp Ltd), Rs.2,843 crore transitional loan to Tamil Nadu Generation and Distribution Corporation Ltd, and Rs 1,538 crore transitional loan to UP Power Corporation Ltd.

The company, that comes under ministry of power, announced the result after market hours on Tuesday. PFC said it had exercised the option under para 46A of the amended AS-11 'The Effects of Changes in Foreign Exchange Rates' to amortize the exchange differences on the long term foreign currency monetary items over their tenure.  Consequently, as on 31 December 2013, Rs 961.45 crore (as on 31 March 2013 - Rs 477.97 crore) has been carried forward in the Foreign Currency Monetary Item Translation Difference Account (FCMITDA).

The PSU also declared an all-time high interim dividend Rs 8.80 per share (face value of Rs 10 each) for the year 2013-14. In the Q3, the company invested in 6.16 crore, 10% cumulative fully convertible preference shares of Rs 10 each issued at par and 6.04 crore equity shares of Rs 10 each issued at par of its wholly-owned subsidiary, PFC Green Energy, the release said.

PFC was set up in 1986 as a financial institution dedicated to power sector financing and committed to the integrated development of the power and associated sectors. PFC was incorporated with an objective to provide financial resources and encourage flow of investments to the power and associated sectors, to work as a catalyst to bring about institutional improvements in streamlining the functions of its borrowers in financial, technical and managerial areas.