PTC India Financial Services (PFS) has reported a 28 percent decline in its net profit to Rs 31.85 crore for the September 2020 quarter. The non-banking finance company had posted a net profit of Rs 44.24 crore in the corresponding quarter of the previous financial year.
"The net profit stands at Rs 32 crore, with an improvement in our net interest margins to 3.58 percent. "With much-needed liquidity boost, we are now increasing our focus on lending towards sustainable infrastructure projects, renewables, HAM (hybrid annuity model) projects, waste management, sewage treatment plants, gas distribution and electric vehicle charging," PFS said in a statement on Friday.
Total income during July-September 2020 also fell to Rs 297.98 crore, against Rs 354.11 crore in the year-ago period, PFS said. The company has received additional credit lines of Rs 700 crore in the second quarter of 2020-21, it said.
PFS said its total outstanding credit — aggregate of loan assets and non-fund based commitments against sanctioned loans — stood at Rs 11,638 crore as on September 30, 2020. Loan assets aggregated to Rs 11,194 crore and outstanding non-fund-based commitments aggregated to Rs 444 crore.
Gross non-performing accounts (GNPAs) stood at 8.46 percent and net NPA at 4.74 percent at the end of September 30, 2020. "The company is expecting further reduction in its NPA level in the coming quarters with resolution of few of its stress accounts," it added.
The firm said its capital adequacy ratio as on September 30, 2020, stood at 24.06 percent, comprising tier-1 at 23.32 percent and tier-2 at 0.74 percent. The debt-to-equity ratio has reduced to 4.30 times. "The consolidation phase of the company is now over, and we are looking ahead towards a future of resurgence, expansion and growth," PFS said.It added that the company's priority towards maintaining a clean balance sheet, both in terms of nature of business and quality of assets, remains untethered. "We strive to improve our NIMs (net interest margins), cost of borrowings and all operating margins to position the company for sustainable growth."