Commenting on the performance for Q3 & 9M FY2014, Mr. R M Malla - Managing Director and CEO said:

"I am pleased with the robust set of numbers posted by PFS in Q3 FY14. Our interest income showed a growth of 64% on account of increasing loan book to Rs. 3,354 crore as at 31st December, 2013. I am happy to share that during Q3 FY14, PFS earned a profit of Rs. 82.17 crore by divesting its stake in Meenakshi Energy Private Limited. There is a vast opportunity waiting to be tapped and a nimble & financially astute model such as ours is well placed to drive performance going forward.

The exit from Meenakshi Energy Private Limited during the quarter strengthens our growth profile and further augments to healthy balance sheet. PFS maintains a strong focus on growing its loan book and continues to strengthen its portfolio in infrastructure projects across the energy value chain to sustain the growth momentum.

Performance for the quarter ended Dec'13

For quarter ended Dec'13, Interest income for PFS grew by 56% to Rs 118.88 crore. Interest expense for the quarter grew by 112% to Rs 57.70 crore. Thus NII grew by 25% to Rs 61.18 crore. Yield on assets stood at 13.8%, which was more or less flat on YoY basis. Costs of funds for Dec'13 quarter stood at 9.1% as compared to 8.3% for Dec'12 quarter. Interest spread for Dec'13 quarter, thus stood at 4.7% and NIM stood at 6.8% as compared to 8.3% for Dec'12 quarter.

The other income stood at Rs 1 lakh for Dec'13 quarter. Operating expense during the quarter was higher by 45% to Rs 9.52 crore. Operating expense includes forex loss of Rs 3.50 crore for Dec'13 quarter as compared to forex loss of Rs 2.64 crore for Dec'12 quarter. Company made a provision on standard asset which stood at Rs 1.17 crore for Dec'13 quarter as compared to Rs 0.48 crore for Dec'12 quarter. PBT before sale on investments was up by 21% at Rs 50.50 crore. There was a profit on sale of investment of Rs 82.17 crore in Dec'13 quarter as compared to Rs nil for Dec'12 quarter. After providing total tax of Rs 25.76 crore, up by 90%, PAT for Dec'13 quarter for PFS stood at Rs 106.91 crore, up by 279% YoY.

Performance for the nine months ended Dec'13

For nine months ended Dec'13, Interest income for PFS grew by 50% to Rs 314.54 crore. Interest expense for the nine months grew by 104% to Rs 143.40 crore. Thus NII grew by 23% to Rs 171.14 crore. Yield on assets stood at 13.8%, which was more or less flat on YoY basis. Costs of funds for Dec'13 quarter stood at 9.1% as compared to 8.3% for Dec'12 quarter. Interest spread for Dec'13 quarter, thus stood at 4.7% and NIM stood at 6.8% as compared to 8.3% for Dec'13 quarter.

The other income stood at Rs 2 lakh for nine months ended Dec'13 as compared to Rs 20 lakh for nine months ended Dec'12. Operating expense during the nine months was higher by 92% to Rs 32.85 crore. Operating expense includes forex loss of Rs 12.83 crore for nine months ended Dec'13 as compared to forex loss of Rs 4.51 crore for nine months ended Dec'12. Company made a provision on standard asset which stood at Rs 5.31 crore for nine months ended Dec'13 as compared to Rs 3.76 crore for same period last year. PBT before sale on investments was up by 12% at Rs 133 crore. There was a profit on sale of investment of Rs 82.17 crore in nine months ended Dec'13 as compared to Rs nil for same period last year. After providing total tax of Rs 53.82 crore, up by 40%, PAT for nine months ended Dec'13 for PFS stood at Rs 161.35 crore, up by 102% YoY.

Performance for the year ended Mar'13

For the year ending Mar'13, Interest income stood at Rs 251.32 crore, up by 89% y.o.y. Interest expense stood at Rs 101.17 crore, down by 47% resulting in 133% increase in NII at Rs 150.15 crore. The other income was down by 25% to Rs 35.21 crore resulting total income of Rs 185.36 crore, up by 66%. Other income for FY'12 includes income from sale of certified emission units of Rs 4.63 crore as compared to Nil for FY'13.

Operating expense was down by 19% to Rs 30.07 crore. PBT before profit on sale of equity investments was up by 109% to Rs 155.9 crore. There was a profit of Rs 127.24 crore for Mar'12 year, being profits from divesting equity stake in 2 companies namely Ind-Barath Power generation and Indian Energy exchange, as compared to Nil for Mar'13 year.

PBT after profits on sale of equity investments and emission units, stood at Rs 155.29 crore, down by 23%. After providing total tax of Rs 51.13 crore, up by 7% y.o.y, the PAT stood at Rs 104.16 crore, down by 32% y.o.y.

Other updates

PFS reported Nil Net NPAs.

Total effective debt sanctioned grew by 5% to Rs.10, 462 crore as on Dec'13 from Rs.9999 crore as at March 31, 2013

Total outstanding debt grew by 46% to Rs. 3354 crore as on Dec'13, from Rs. 2296 crore as at March 31, 2013.

Capital Adequacy Ratio as on Dec'13 stood at 34.7%

Book Value stood at Rs 24.6.

Promoter's shareholding as on Dec'13 stood at 60% and none of the shares are pledged.

The stock is currently trading at Rs 14.25.