PTC India Financial Services (PFS) today reported a decline of 59 per cent in net profit at Rs 34.28 crore for the third quarter ended December 31, owing to bad loans and stressed accounts on its books.
The company's net profit in the corresponding quarter of the previous fiscal stood at Rs 83.22 crore.
Total income from operations were down at Rs 301.97 crore from Rs 313.54 crore in the same period of 2016-17, the company said in a statement.
"The credit portfolio of the company continues to grow. However, the profitability is impacted due to the legacy non-performing and other stressed accounts.
"Financial performance has been impacted by provisioning against loans and equity investment during the period, and most of the NPAs and other stress assets are moving towards resolution," said MD and CEO Ashok Haldia.
He said sustained efforts have helped in keeping the stressed loan assets under check and gross NPAs have reduced to 4.87 per cent of the gross loans as on December 31, 2017 compared to 5.92 per cent at September quarter end.
Gross NPAs at December-end stood at Rs 569 crore compared to Rs 460 crore at the end of year-ago quarter.
At the end September quarter, gross NPAs stood at Rs 623 crore.
"With capital adequacy ratio of 23 per cent, the company is adequately capitalised to support the growth while managing the legacy of stressed portfolio," Halida said.
The total outstanding credit or the aggregate of loan assets and non-fund based commitment against sanctioned loans, grew 30 per cent to Rs 13,297 crore at the end of the reported quarter against Rs 10,190 crore by the year-ago period.
While loan assets aggregated to Rs 11,672 crore, non-fund based commitment to be disbursed in coming quarters aggregated to Rs 1,625 crore as at December 31, 2017, the company said.
Stock of the company traded at Rs 33.60 on BSE, down 1.75 per cent from the previous close.
Disclaimer: No Business Standard Journalist was involved in creation of this content
