Govt Sets Rs 36,000 Cr Revenue Target for PFC in FY21

The Central Government has set an ambitious revenue target of Rs 36,000 crore along with various performance-related parameters such as Operating Profit as percentage of Revenue from Operation, Profit After Tax (PAT) as a percentage of Average Net worth and Non-financial parameters viz., IPDS-related parameters.

September 29, 2020. By Manu Tayal

The Central Government has set an ambitious revenue target of Rs 36,000 crore along with various performance-related parameters such as Operating Profit as percentage of Revenue from Operation, Profit After Tax (PAT) as a percentage of Average Net worth and Non-financial parameters viz., IPDS-related parameters.

In this regard, state-owned non-banking finance firm Power Finance Corporation Ltd (PFC) has signed a performance-based Memorandum of Understanding (MoU) with the Ministry of Power (MoP), Government of India  (GoI) detailing various targets to be achieved by PFC during the financial year 2020-21.

Further, the MoU has been signed between Sanjiv Nandan Sahai, Secretary (Power), Government of India and RS Dhillon, CMD, PFC in presence of many senior officials of the Ministry of Power and Power Finance Corporation. 

The power sector lender has been delivering considerable performance from the past years and the ratings from the Government of India stands testimony to the performance, the company said in a statement.

Meanwhile, scrips of the company ended at Rs 88.35 apiece, up 0.51 per cent, from the previous close on the exchange.

Recently, the company had dismissed speculations about the launch of follow on public offer (FPO) to raise funds in near future.

It said that, “there have been rumours circulating in the market on the launch of FPO by the PFC. In this regard, it is clarified that the PFC is not planning to launch any such FPO in the near future.”

Also, the company stated that as on June 30, 2020, PFC's Capital Adequacy Ratio is at 17.32 per cent with Tier I capital of 13.11 per cent.

“Thus, we have sufficient cushion available over the regulatory limit of 15 per cent. Also, lending by the PFC under Discom Liquidity package will give us the benefit of lower risk weight on account of state government guarantee. This will help in leveraging our capital more efficiently,” it added.

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