The Hindu Business Line : PFC net stays flat at Rs 983 cr

New Delhi April 23 Power Finance Corporation (PFC) on Monday reported 1.24 per cent rise in net profit to Rs 983 crore for 2006-07, compared to Rs 971 crore during the previous year.

Total income rose by 25.51 per cent to Rs 3,926 crore (Rs 3,128 crore).

The State-owned company, which functions as a specialised financial institution lending to the power sector, attributed the flat net profit figure mainly to an extraordinary income component in 2005-06.

PFC, which recently tapped the capital market with an IPO that raised Rs 997 crore, plans to borrow about Rs 17,000 crore during the current fiscal from domestic and overseas markets.

Last fiscal the corporation raised Rs 12,000 crore.

During the current year, around Rs 9,000 crore will be raised through bonds, while nearly Rs 3,500 crore would come from short-term borrowings.

The rest would come from medium-term borrowings and foreign currency loans, said Mr Satnam Singh, Director (Finance).

"We will also raise $300 million from the US market through private placements in May," he added.

Another $200 million would be raised later in the year.

Giving details of the company's financial performance, Mr V.K. Garg, Chairman and Managing Director, said that sanctions rose 38 per cent to Rs 31,146 crore (Rs 22,502 crore).

PFC disbursed around Rs 14,055 crore (Rs 11,681 crore).

The company, which is being actively considered for `Navratna' status, has reported recovery rate of over 99 per cent during the fiscal gone by, in line with the trend during the previous years.

Financing of State sector projects would continue to remain the mainstay of the company.

Alongside, it plans to focus on enhanced funding of private sector projects during the coming years and on loan syndication for large projects.

More Stories on : Financial Performance | Financial Institutions | Power

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