Power Finance Corporation group clocks highest-ever annual profit after tax in FY23
May 28, 2023
New Delhi [India], May 28 : State-owned Power Finance Corporation (PFC) Corporation posted its highest annual Profit After Tax (PAT) with a 13 per cent increase from Rs 18,768 crore in FY22 to Rs 21,179 crore in FY23.
As of March 31, 2023, the consolidated net worth of the company stands at Rs 111,981 crore versus Rs 96,275 crore as of March 31, 2022, the statement mentioned in its earnings data.
On the occasion, RS Dhillon, CMD said, "I am happy to see that PFC has successfully regained its pre-COVID growth momentum. In FY23, we achieved substantial growth in disbursements and witnessed a remarkable double-digit increase in our loan asset book.
"Furthermore, our active resolution efforts have resulted in improved asset quality, with the Net NPA ratio nearly reaching 1 per cent. Also, in FY23, we strategically diversified into the infrastructure sector, a significant milestone decision positioning us for long-term business growth. So far we have sanctioned ports, refineries and e-mobility projects."
Power Finance Corporation said that its consolidated loan asset book grew by 13 per cent to Rs 857,500 crore as of March 2023 versus Rs 758,496 crore as of March 2022.
The asset quality has further improved with a Gross NPA ratio below 4 per cent at 3.66 per cent in FY23 versus 5.02 per cent in FY22, the company's statement said.
On the loan distribution side, in FY23, the PFC group collectively sanctioned Rs 105,566 crore and disbursed Rs 32,909 crore under the 'Late Payment Surcharge Rules'.
Also, a final dividend of Rs 4.50 per share was proposed by Board in Q4FY23. Thus, so far PFC has given a total dividend of Rs.13.25 per share for FY 23, the statement mentioned. A dividend is a payout paid by companies to investors from its earnings, though not mandatory.
PFC said that its loan asset book increased by 13 per cent and also crossed the Rs 4 lakh crore mark.
"The loan book stands at Rs 4,22,498 cr. as of 31.03.2023 compared to Rs.3,73,135 cr. as of 31.03.2022," the corporation said.
In its earnings report, PFC also said that to facilitate future business growth the corporation has signed MoUs worth over Rs 90,000 crore with various state agencies in FY23.
Parminder Chopra, Director (Finance) said that FY23 has been the year of resurgence for PFC.
"Notably, we surpassed our own record and achieved an all-time high annual profit of Rs.11,605 cr. This outstanding achievement is a testament to our unwavering commitment to excellence and it sets a solid foundation for our future endeavors," Chopra said.
