PFC net up 16% to fund coal mining, gas projects
State-run Power Finance Corporation (PFC) is looking to finance coal mining and gas station projects in India and abroad as part of expansion plans.
The company, a major lender to the power sector, on Tuesday reported a 16 per cent increase in its profit after tax (PAT), at Rs 3,032 crore, for the year ended March, mainly due to higher loan disbursements. It had posted a PAT of Rs 2,620 crore in 2010-11.
Its income grew to Rs 13,037 crore in 2011-12 from Rs 10,175 crore a year before. Higher interest income, gains from repricing of existing loans and better yield on investments helped, said company officials.
Chairman and Managing Director Satnam Singh said the company was looking to expand business activities in the coming months. “We are exploring the possibility of funding coal mines and gas stations (projects), both in India as well as overseas, where output will be brought to India,” he said. It has also planned to set up a power equity fund, which would buy equities in power projects. The board of directors has already approved the proposal.
Loan assets grew 31 per cent to Rs 1,30,072 crore in 2011-12 against Rs 99,500 crore in the year-ago period. Loans worth Rs 41,418 crore were disbursed in 2011-12, compared with Rs 34,000 crore a year before.
For the fourth quarter ending March, net profit grew 35 per cent to Rs 818 crore, against Rs 608 crore in the same quarter of the previous year.
Last year, PFC raised Rs 36,000 crore, including Rs 5,000 crore through tax-free bonds. In the current financial year, it has plans to raise Rs 40,500 crore. “We are planning to go for external commercial borrowing worth $250 million. (Rs 1,370 crore). We expect to start the roadshows in the first week of June,” Singh said. The roadshows would be also be conducted in London and Taipei.