Power Finance Corp reported 16.93% growth in Sep-20 quarter top line revenues at Rs18,158cr. The performance in the Jun-20 quarter did not really get impacted as the business of power funding is largely non-cyclical in nature.
For the Sep-20 quarter, the operating profits were up 46% at Rs5284cr. The sharp spike in operating profit was due to higher revenues absorbing fixed costs better. Also, exchange gains also made a big difference to the profits of PFC. This resulted in the operating margin or OPM expanding sharply from 23.31% in the Sep-19 quarter to 29.10% in Sep-20 quarter.
Profit after tax (PAT) for the Sep-20 quarter was higher by 71.8% at Rs4,290cr due a more substantial deferred tax credit in the Sep-19 quarter. As a result, the PAT margins expanded from 16.08% in Sep-19 quarter to 23.62% in the Sep-20 quarter.
Financial highlights for Sep-20 compared yoy and sequentially
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|
Power Finance Corporation |
|
|
|
Rs in Crore |
Sep-20 |
Sep-19 |
YOY |
Jun-20 |
QOQ |
|
Revenues |
18,158.29 |
15,528.83 |
16.93% |
16,914.05 |
7.36% |
|
Operating Profit |
5,284.19 |
3,619.45 |
45.99% |
4,621.06 |
14.35% |
|
Profit After Tax (PAT) |
4,289.74 |
2,497.10 |
71.79% |
3,557.23 |
20.59% |
|
|
|
|
|
|
|
|
Diluted EPS (Rs) |
₹ 12.31 |
₹ 7.08 |
|
₹ 10.16 |
|
|
Operating Margins |
29.10% |
23.31% |
|
27.32% |
|
|
PAT Margins |
23.62% |
16.08% |
|
21.03% |
|
Key takeaways from the Sep-20 quarter results
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As on Sep-20 end, PFC has credit impaired loans to the tune of Rs44,747cr, of which an impairment loss provision is maintained at Rs26,035cr. That takes the impairment loss coverage ratio to 58.2%, a good improvement from 51.5% as of Sep-19 end.
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