Power Finance Corporation (PFC) on Wednesday reported about 80 per cent decline in consolidated net profit at ₹693.71 crore for the quarter ended March 2020, mainly due to transaction exchange loss.

The company had posted a consolidated net profit of ₹3,391.27 crore in the quarter ended March 31, 2019, a regulatory filing said.

Total income during the quarter under review rose to ₹16,254.65 crore from ₹14,387.92 crore in the year-ago quarter.

For fiscal year 2019-20, consolidated net profit declined to ₹9,477.24 crore from ₹12,640.27 crore in 2018-19.

However, total income in 2019-20 rose to ₹62,275.36 crore from ₹54,156.83 crore in 2018-19.

The drop in net profit is primarily due to transaction (foreign) exchange loss of Rs 3,084.78 crore for the quarter ended March 31 as compared with a gain of Rs 160.23 crore in the year-ago period, it said.

For fiscal 2019-20, transaction exchange loss widened to ₹4,991.32 crore from ₹1,041.44 crore in 2018-19.

Commenting on the outlook, PFC CMD R S Dhillon told PTI there is no reason to believe that the Covid-19 pandemic will have any significant impact on the ability of the company to run its operations.

“With its robust IT infrastructure and digital communication technology, the company encouraged its employees to work from home. This enabled our workforce to work securely through remote technology ensuring business continuity,” he said.

“The company disbursed around ₹11,000 crore to finance power sector projects during the first week of lockdown till March 31, 2020, which bears testimony to its attempt to create pandemic-proof workplace,” Dhillon added.

He said PFC is fully geared to meet its funding needs.

“Currently, the company has adequate undrawn lines of credit from various banks. Considering PFC’s high credit worthiness and well established relationship with lenders, it can mobilise funds from both domestic and international markets,” Dhillon said.

Related Topics