New Delhi: Non-banking financial company PTC India Financial Services (PFS) reported a slump of 72 per cent in its net profit at Rs 15.64 crore in the first quarter ended June.
Company's net profit was at Rs 55.93 crore in the corresponding April-June quarter of the previous fiscal. Total income increased to Rs 352.19 crore in the June quarter of 2019-20, as against Rs 325.19 crore in the same period of 2018-19.
The net interest margin (NIM) for the quarter stood at 2.76 per cent, it said in a release.
The main business of PFS is to provide finance for energy value chain through investment and lending into such projects PFS said it made additional provisioning of Rs 62.70 crore in the first quarter of the current fiscal.
Fresh loans of Rs 717 crore were sanctioned and Rs 457 crore were disbursed during the quarter, it added.
"Though there are continuous sectorial issues for the NBFC sector, we continue to focus on improving our yields, structured finance to corporate of good credit standings, rotate our existing assets towards higher yields and to explore new areas for generation of fee based income and advisory services which is being strengthened in the company, said Pawan Singh - Managing Director & CEO, PFS.
He said the company will continue to grow in renewable sector and sustainable financing.
The company said that it has to overcome the liquidity challenges and its strategy is diversification of borrowing at lower cost including enhanced borrowing from international and financial institutions taking full advantage of the relaxations provided by the government in ECB guidelines. Stock of PFS traded 9.01 per cent down at Rs 12.32 on BSE.