Power Finance Corporation logs Rs 1,108 cr net profit in Q3

NEW DELHI: State-owned lender Power Finance Corporation today posted net profit of Rs 1,108 crore for the quarter ended December 31, based on the new accounting method.

The company had reported a net profit of Rs 659 crore in the corresponding quarter of the last financial year (2010-11), the company said in a filing to the BSE.

PFC has amortised losses under AS (Accounting Standard) 11 of the accounting procedure for the next five years which has resulted in increased profit, according to officials.

Total income of the company was Rs 3,282 crore during October-December, 2011-12, as against Rs 2,575 crore in the same period last fiscal.

PFC finances power generation, transmission and distribution projects.

The company which already has four subsidiaries - PFC Consulting, PFC Green Energy, PFC Capital Advisory Services and Power Equity Capital Advisors -- is mulling setting up another one to fund coal mine acquisitions by domestic companies abroad.

The proposed subsidiary may also look at other financing aspects of the power projects in India.

PFC issued infrastructure bonds in December and garnered around Rs 1,000 crore.

The company has been looking to raise Rs 30,000 crore during the current fiscal, through various instruments including bonds.

Shares of the company closed at Rs 186.70, up 2.72 per cent on the BSE.