PFC PAT UP 20%
04/28/2010

Power Finance Corporation’s ‘Profit After Tax’ (PAT) is up 20% to touch Rs 2,355 crore for the FY ended March, 2010 as against Rs.1970 crore recorded in the FY 2008-09

Online PR News – 28-April-2010 – – PFC PAT UP 20%

Mumbai, April 27, 2010: Consistent with its higher volume of operations, Power Finance Corporation’s ‘Profit After Tax’ (PAT) is up 20% to touch Rs 2,355 crore for the FY ended March, 2010 as against Rs.1970 crore recorded in the FY 2008-09. Total Income rose 23% to reach a figure of Rs.8,074 crore as against Rs.6584 crore of 2008-09. ‘Loan Assets’ increased 24% from Rs. 64,429 crore to Rs. 79,856 crore and Networth is up 17% from Rs.10,790 crore to Rs. 12,618 crore, during this period. Net NPAs, as a % Loan Assets, have been consistently maintained at 0.01%.

While sanctions rose 15% from Rs.57,030 crore to Rs.65,466 crore, disbursements are up 23% at Rs 25,808 crore, Earning Per Share (EPS) has also gone up from Rs 17.56 to Rs. 20.52 during this period.

FUTURE PLANS

· Exploring possibilities of financing Nuclear Power Projects in India. PFC shall be signing a MoU shortly with Nuclear Power Corporation of India Ltd (NPCIL) to finance the capital outlay and offer services.

· Exploring opportunities to finance Hydro-electric Power Projects being developed in Nepal and Bhutan.

· Entering into a relatively new arena namely, the 'Acquisition Advisory Services' to help clients identify opportunities of acquisition / mergers in power sector.

· The product of "Loan Towards Promoters' Equity against security of Commissioned Project" introduced by PFC in October 2009 is now proposed to be offered for Private Sector borrowers as well to leverage the revenue stream of commissioned projects of IPPs going for implementation of new projects.

· PFC is in the process of finalizing a policy for taking direct equity position in viable projects in State, Central and Private Sector. Towards this end, PFC is working on formulation of a policy for providing equity and equity syndication services to facilitate flow of institutional funds to the power sector.

· Incorporating a new Subsidiary to specifically focus on ‘Non-conventional Energy Sources’ like Wind Power, Solar, Bio-Mass Projects.

TARGETS FOR THE FY 2010-11

The key performance parameters under the 'MoU' signed with the Ministry of Power include 'Loan sanction' of Rs. 60,000 crores, 'Disbursement' to the tune of Rs.27,000 crores, Resource Mobilization of Rs. 27,700 crores, 'Gross Margin' of Rs. 9,120 crores and a 'Return on Net Worth' of 15.96% under ‘Excellent’ category.