It’s impressive to see that Power Finance Corporation (PFC) has achieved significant growth in its financial performance for the fiscal year 2022-2023. Here are the key highlights of their financials:
- Profit After Tax (PAT): PFC recorded a 13% increase in its PAT, which rose from Rs 18,768 crore in FY22 to Rs 21,179 crore in FY23. This indicates a strong growth in their earnings.
- Consolidated Net Worth: The company’s consolidated net worth also experienced substantial growth, reaching Rs 1,11,981 crore as of March 31, 2023, compared to Rs 96,275 crore as of March 31, 2022. This signifies an increase in the overall value of the company’s assets.
- Loan Asset Book: PFC’s consolidated loan asset book expanded by 13% during FY23. It grew from Rs 7,58,496 crore in FY22 to Rs 8,57,500 crore in FY23. This demonstrates an expansion in their lending activities and portfolio.
- Late Payment Surcharge (LPS) Rules: In FY23, the PFC Group collectively sanctioned Rs 1,05,566 crore and disbursed Rs 32,909 crore under the Late Payment Surcharge (LPS) rules.
- This suggests that PFC has been taking measures to address late payments and ensure timely disbursements.
It should be noted that In June 2022, the government introduced the Late Payment Surcharge (LPS) to address the increasing dues of power distribution companies (discoms) to power generating companies (gencos).
In less than a year since its implementation, the outstanding dues of discoms to gencos have decreased by more than 40 percent.
R S Dhillon, the CMD of Power Finance Corporation (PFC), stated that the power sector has shown signs of improvement.
The Aggregate Technical and Commercial (AT&C) losses were reduced from 19.90 percent in FY20 to 16.50 percent in FY22.
This improvement can be attributed to the timely release of outstanding subsidies, clearance of dues from government departments, and the prompt issuance of tariff orders.
Parminder Chopra, the Director of Finance at PFC, expressed satisfaction with the company’s performance in FY23, surpassing their own records.
The remarkable achievement highlights their unwavering commitment to excellence and establishes a strong foundation for future endeavors.
During the March FY23 quarter, PFC reported a consolidated net profit of Rs 6,128.63 crore, marking a significant increase of 42.66 percent.
This growth was aided by higher income. In comparison, the net profit from continuing and discontinued operations in the preceding FY 2021-22 January-March quarter was Rs 4,295.90 crore.
The total income rose to Rs 20,074.11 crore from Rs 18,873.55 crore in the corresponding quarter of the previous year, representing a year-on-year rise of 6 percent.
Furthermore, PFC achieved its lowest Net Non-Performing Asset (NPA) ratio in the last six years, reaching nearly 1 percent.
The Net NPA ratio for FY23 stood at 1.07 percent, a decline of 69 basis points from 1.76 percent in FY22. In FY23, PFC sanctioned Rs. 47,906 crores and disbursed Rs. 16,764 crores to Discoms for the clearance of dues under the Late Payment Surcharge (LPS) Rules.
To facilitate future business growth, PFC signed Memorandums of Understanding (MoUs) worth over Rs. 90,000 crore with various state agencies during FY22-23.
These financial figures indicate a strong performance by Power Finance Corporation in FY23, with significant growth in profit, net worth, and loan assets.
