Power Finance Corporation?s (PFC) business development plans seem to be working. Last year, the company?s board had approved the plan of financing equity component of power and fuel supply projects in addition to debt portion. The business plan has since taken off, with the PFC extending the first loan of Rs 100 crore to help Andhra Pradesh Power Generation Company (Apgenco) finance equity component of its envisaged power projects.
The PFC?s board has also granted its approval to business plans like financing of power equipment and fuel sources with backward linkage to power sector and consortium lending. The objective is to diversify the company?s income stream and to improve the future growth prospects.
According to the company?s chairman Satnam Singh, the power sector lender has delivered steady performance on key financial parameters like total income, net profit, return on average assets, earning per share (EPS) and networth despite the global economic recession.
The firm logged a handsome growth of 82% in its net profit for the first nine months of the current financial year, compared with the same period of the past fiscal. The company?s net profit for April-December 2009 is Rs 1,756 crore, against Rs 965 crore reported in the same period last year.
Meanwhile, its profit after tax (PAT) increased 36% to Rs 1,594 crore during the same period. The company?s operating profit on average assets increased 48% to 4.04%.
PFC?s EPS rose 61% to Rs 20.41. Meanwhile, the company?s networth increased 30% to Rs 12,453 crore.
The company?s loan assets went up 20% to Rs 72,441 crore while its disbursements increased from Rs 14,101 crore to Rs 15,355 crore. Its non-performing assets stood at the nominal 0.01% of the net loan assets. The company?s net interest income rose 34% to Rs 2,166 crore.
The company was able to raise funds worth Rs 21,000 crore from the market during the past financial years despite the global financial meltdown. Its single bond issue of 4,000 crore, the largest ever by any Indian corporate, was well received by investors.
Meanwhile, the company reported 66% growth in its PAT for the latest quarter over the same period of the past fiscal. The company?s EPS rose Rs 4.91 as against Rs 2.95 in the corresponding period of the previous year.
PFC is the nodal agency for supervising implementation of the restructured-accelerated power development and reforms programme (R-APDRP). The government has allocated Rs 51,000 crore for supporting projects being taken by states under the scheme during the current plan. The government has also nominated PFC as the nodal agency for supervising preparation for the allocation of ultra mega power projects. This is evidence of the government?s faith in the state-owned lender.