Dividend Bonanza Continues As PFC Gives Rs 8.8/Share, PAT Surges 37%

Finance ministry insistence of pushing PSUs to announce high dividend translated into bonanza for the share holders of PSUs. Latest in the league is the Power Finance Corporation (PFC) which announced interim dividend of Rs 8.80 per share or 88% on Tuesday, an all time high figure. During third quarter company has improved its performance both on top line and bottom line basis. Increased volume resulted in better topline at Rs 5539 crore as against Rs 4465 crore achieved during the same time last year, up by almost 24%. Company’s profit after tax also rose by 37% to Rs 1534 crore as against Rs 1117 crore achieved during Q3 last year.

As far as performance in terms of loan lending is concerned it seems that there is little effect of slowdown in power sector on the company’s performance. Company’s sanctions in the quarter reached Rs 24629 crore as against Rs 18144 crore achieved during the same period last year, showing a growth of 36%. 

During this quarter it has sanctioned 4 major projects across India. These include 800MW TPS plant in Bhoopalpally, Andhar Pradesh, 660 MW TPS plant at Ramagundam and project of Tamil Nadu Generation and Distribution Corporation and UP Power Corporation. Bhohpalpally and Ragundam projects were sanctioned at Rs 4555 crore and Rs 3746 crore respectively. These sanctions exclude money sanctioned R-APDRP. 

It is interesting to note that total business, including loan assets and borrowing, of the corporation has crossed Rs 3 lakh crore during the quarter and its EPS has also rose to Rs 46.49 per share from the earlier level of Rs 33.85 per share achieved in Q3 last year.