PFC’s Q3 (ended 31st December 2020) Financial Results

Q3’21/9M’21 Results – 11th February 2021

 Standalone
• Records all-time high Quarterly PAT of Rs.2,333 cr.

• 39% jump in Standalone Profit After Tax from Q3’20 . PAT at Rs.2,333 cr. for Q3’21.Vs Rs.1,680 cr. in Q3 ’20

• 45% jump in Standalone Profit After Tax from 9M’20 – PAT at Rs.6,117 cr. for 9M’21.Vs Rs.4,220 cr. in 9M ’20

• 30% increase in Net Interest Income from Q3’20 –Net Interest Income at Rs. 3,442cr. for Q3’21 vs.Rs.2,646 cr. in Q3’20

• 34% increase in Net Interest Income from 9M’20 –Net Interest Income at Rs. 9,879 cr. for 9M’21 vs.Rs.7,362 cr. in 9M’20

• Owing to resolution of stressed assets
o Gross NPA ratio saw a sharp reduction of 249 bps from 9M’20. The current GNPA ratio is at 5.85% against 8.34% in 9M’20.
o Net NPA ratio also saw a sharp reduction of 164 bps from 9M’20. The current Net NPA ratio is at 2.30% against 3.94% in 9M’20.

• Even in a challenging operating environment, key financial indicators maintained within a stable range for 3 consecutive quarters. Q3’21 Yield is at 10.68% & Cost of Funds is at 7.48% Driven by efficiencies in yield and cost of funds, the Net Interest Margin on earning assets for Q3’21 at 3.63% has improved by 35 bps from 3.28% in Q3’20.

• Comfortable capital adequacy levels at 20.21%having sufficient cushion over & above the prescribed regulatory limits

• This quarter has all been about delivering on the past promises and despite a tough operating environment, PFC has been successful in holding its promises and delivering a robust performance

Consolidated

Q3’21 Vs Q3’20

• 17% increase in consolidated Profit After Tax from Q3’20 – PAT at Rs. 3,963 cr. for Q3’21 vs. Rs.3,387 cr. for Q3’20
• 16% increase in Consolidated Revenue from Operations – Consolidated Revenues at Rs. 18,435 cr. for Q3’21. Vs.15,873 cr. for Q3’20
• Reduction in consolidated net NPA ratio from 3.56% in Q3’20 to 2.12% in Q3’21 due to resolution of stressed assets.
• Reduction in consolidated Gross NPA ratio from 7.41% in Q3’20 to 5.48% in Q3’21 due to resolution of stressed assets.

 Liquidity support to Discoms under AatmaNirbhar Bharat Abhiyaan

• Under the AatmaNirbharDiscoms liquidity support announced by the GOI, PFC & its subsidiary REC combined together, have so far sanctioned Rs.1,35,497 cr. and disbursed Rs.46,074 cr.

 Management Comments

• Mr. R.S. Dhillon, CMD Remarks – PFC’s CMD commented that I am happy to see that PFC has so far navigated the pandemic well with a high level of resilience. This quarter results are testament to this. With Indian economy getting back on track of recovery, I feel positively about the recovery in Indian power sector. I believe that PFC is in a strong financial position to leverage on attractive growth opportunities.

• Ms. Parminder Chopra, Director (Finance) Remarks – PFC’s Director (Finance) commented that the 3rd quarter has been remarkable for PFC with quarterly profit reaching an all-time high. Our overall Q3 results reflects the strong operational strength and solid fundamentals of PFC in a continuing challenging environment.

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