A Navaratna PSU, Power Finance Corporation (PFC) reported a steady growth in its standalone net profit for the second quarter ended September 2008. During the quarter, the profit of the company rose 16.69% to Rs.329.33 crore. Operating income for the quarter rose 29.12% to Rs.1584.98 crore, while total income for the quarter rose 30.51% to Rs.1602.11 crore, when compared with the prior year period. The company posted EPS of Rs.2.87 during the quarter, registering 16.67% growth over prior year period.
Net Profit for the current quarter was impacted by exchange loss of Rs.86.06 crore and it also received an income Tax refund of Rs.27.87 crore
PFC had tapped the primary market in 2007 with a Rs.997.19 crore issue. It was priced at Rs85 per share and got listed at Rs.113. Today it is quoted at around Rs.120 levels, which continues to remain a very good deal for the original shareholders even now, even in this market.
The company has plans to raise Rs.300- Rs.400 crore through a bond issue with a green shoe option. This was to have happened in November 08’ but it yet to see the light of the day, obviously the market conditions making PFC do a rethink.
PFC is the dominant investor in the country's power sector, funding about 20% of the projects. PFC has been designated as a nodal agency by the union government for facilitating the development of UMPPs and with six more UMPPs to go, PFC seems to have its work all chalked out! Power is one of the sectors which is expected to get the maximum impetus and irrespective of any slowdown or inflation, the growth of this sector will continue relentlessly. PFC remains a good stock in the portfolio.thanks
No comments:
Post a Comment