PFC Stocks Dip as Subsidiaries Transferred to Power Grid

28 Sep 2023 , 12:36 PM

Power Finance Corporation (PFC) saw a more than 2 % decline in its stock price on September 28 after transferring its subsidiaries, Ananthpuram Kurnool Transmission Limited and Bhadla III Transmission Limited, to Power Grid Corporation of India.

In contrast, Power Grid Corporation’s stock gained 0.8 %. Ananthpuram Kurnool Transmission Limited was set up to develop a transmission scheme associated with solar energy zones in Ananthpuram (Ananthapur) (2500 MW) and Kurnool (1000 MW), Andhra Pradesh.

Bhadla III Transmission Limited was established to develop the transmission system for evacuating power from the Renewable Energy Zone (REZ) in Rajasthan (20 GW) under Phase III-Part B1. On September 27, PFC’s stock rose nearly 6 % following the announcement of an MoU with PNB for infrastructure and power project development.

For the quarter ending June 2023, PFC, a state-owned NBFC, reported a 30.6 % year-on-year increase in net profit to Rs 5,982.14 crore. The net NPA dropped to its lowest level at 1 %, down from 1.57 % in Q1 FY23, and gross NPAs decreased by 148 basis points from 5.02 % in Q1 FY23.

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