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PTC India Financial Services (PFS) has reported a consolidated net profit of ₹25 crore for the January-March quarter in FY22 against a net loss of ₹54 crore in the year-ago period
The company’s consolidated total income during Q4 fell to Rs ₹231 crore from ₹275 crore in the corresponding quarter a year-ago and ₹241 crore in Q3 FY22.
Power trading major PTC India is the holding company of the non-banking financial company (NBFC).
In January 2022, the firm courted controversy after three of its independent directors resigned from the board alleging serious corporate governance issues. Subsequently, PFS was directed by the SEBI to first address the corporate governance issues at the firm and was barred from reporting quarterly results till they address these issues.
“We have worked through all the challenges with gumption and resolve and the results showcase our efforts. The forensic audit has been completed. The forensic auditor’s report does not show any material financial impact. The financial statement for FY 22 shows that the company is now positioned to grow at a rapid pace,” PFS said in its management commentary.
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“We are taking steps to contribute towards Green Hydrogen, sustainable agricultural projects – Biomass, water treatment projects, electric mobility, renewable energy projects, power transmission, waste management facilities and other sustainable green infrastructure finance projects,” it added.
PFS said its Yield on Earning Portfolio stood at 10.52 per cent in Q4FY22, while the Debt Equity Ratio improved to 3.14 times compared to 4.37 times in Q4FY21.
NIM improves
“Net Interest Margin (NIM) improved to 4.30 per cent in Q4 compared to 4.24 per cent in the year-ago quarter. Spread (Earning Portfolio) stood at 2.92 per cent compared to 2.98 per cent in Q4 FY21. The cost of borrowed funds has reduced to 7.60 per cent in the quarter compared to 8 per cent in Q4 FY21,” it added.
Net Interest Income (NII) for Q4 stood at ₹86.36 crore (₹88.57 crore). Business (disbursements) of Rs ₹3,888 crore has been made in FY22 compared to ₹2,647 crore in FY21, it said.
Corporate governance issues
The company said it has complied by the SEBI {LODR) norms by submitting the forensic audit report with management comments, E&Y remarks, legal opinion by a former Chief Justice of India, legal opinion of CAM and former Director (Finance) of PFC with stock exchanges and the same is also being submitted to the capital markets regulator.
Independent directors
PFS in a regulatory filing to stock exchanges said that on November 14, its board approved the appointment Seema Bahuguna, P V Bharathi and Naveen Bhushan Gupta as Additional Directors and in the category of Independent Directors of the company to hold the office for a term of three years with immediate effect subject to requisite approval of members of the company.
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