Power Finance Corporation Limited · NSE:PFC
Power Finance — Q2 FY19 Earnings Presentation
24 slides from Power Finance's earnings presentation, Sep 30, 2018
Slide 1: Performance Highlights Quarter ended 30th September 2018
Power Finance Corporation Limited A Navratna PSU Performance Highlights Quarter ended 30th September 2018 54EC Foreign Borrowings Renewables 54EC Bonds Funding for a Brighter Tomorrow….
Slide 2: Table of Contents
Table of Contents 1. Highlights 2. Earning Updates 3. Asset Quality 4. Operational Performance 5. ALM Perspective 6. Shareholders Outlook 2
Slide 3: Highlights
1. HIGHLIGHTS 3
Slide 4: Highlights
Highlights SNAPSHOT – As on 30TH SEPTEMBER 2018 H1 FY19 vs H1 FY18 (Rs.’crore) Profit & Loss Highlights Q2’19 Q1’19 Rs.2,75,486 cr. Rs.30,486 cr. PAT 1,355 1,373 Interest Income 6,929 6,617 Interest Expense 4,749 4,624 LOAN DISBURSEMENT 14% ASSETS 14% Net Interest Income 2,180 1,993 (Net) Net Intere
Slide 5: Earning Updates
2. EARNING UPDATES 5
Slide 6: Earning Updates: Revenue & Growth
Earning Updates Revenue & Growth (Rs.’crore) Q2 FY 19 Q1 FY 19 Q2 FY 18 H1 FY 19 H1 FY 18 Interest Income 6,929 6,617 6,747 13,546 13,492 Interest Expense 4,749 4,624 4,272 9,374 8,411 Net Interest Income 2,180 1,993 2,476 4,173 5,081 Profit After Tax 1,355 1,373 1,226 2,728 2,348 Cumulative Provisi
Slide 7: Earning Updates: Key Ratios
Earning Updates Key Ratios Q2 FY 19 Q1 FY 19 Q2 FY 18 H1 FY 19 H1 FY 18 Yield on Earning Assets 10.60% 10.57% 11.05% 10.56% 11.12% Cost of Funds 8.09% 8.08% 8.33% 8.07% 8.32% Interest Spread on Earning Assets 2.50% 2.49% 2.72% 2.49% 2.80% Net Interest Margin on Earning 3.33% 3.26% 3.93% 3.28% 4.01%
Slide 8: Asset Quality
3. ASSET QUALITY 8
Slide 9: Provisioning Snapshot – Total Portfolio
Provisioning Snapshot – Total Portfolio (Rs.’crore) Status as on 30.09.2018 Stage I Stage III (NPA) as & Stage III % of Total Loan Total Stage II Assets Outstanding Loan Assets Government Sector 2,40,653 - Nil 2,40,653 Private Sector 23,708 28,287 9.67% 51,995 Total Outstanding Amount 2,64,361 28,28
Slide 10: Asset Quality Snapshot – Total Portfolio
Asset Quality Snapshot – Total Portfolio Loan Book of Rs.2,92,648 cr. as on 30.09.2018 No Stress – Regular in Government Sector Servicing 82% Rs. 2,40,653 cr. Rs.22,046 cr. No Stress – Private Sector Revival Regular in 18% Envisaged Servicing Rs.51,995 cr. Rs.4,873 cr. Stressed Rs.25,076 cr. 90% of
Slide 11: Asset Quality Snapshot – Private Sector
Asset Quality Snapshot – Private Sector Status of Rs.51,995 cr. of Private Sector Loans Revival/Settlement No Stress Regular 22 projects of Rs. 25,076 cr. envisaged with minimum in Servicing in stress haircut Loan Assets worth Loan Assets worth Rs.4,873 cr. – All in stage III – Provision of Rs.22,04
Slide 12: Operational Performance
4. OPERATIONAL PERFORMANCE 12
Slide 13: Loan Assets - Composition
Loan Assets - Composition (Rs.’crore) As on 30.09.2018 As on 30.09.2017 Amt. % Amt. % Gross Loan Assets 2,92,648 100% 2,58,050 100% Scheme Wise Generation 2,05,608 70% 1,91,049 74% Transmission 21,935 7% 17,706 7% Distribution 42,820 15% 22,951 9% Others 22,284 8% 26,344 10% Sector Wise Government S
Slide 14: Disbursements - Composition
Disbursements - Composition (Rs.’crore) Q2 FY 19 Q2 FY 18 H1 FY 19 H1 FY 18 Amt. % Amt. % Amt. % Amt. % Disbursements 17,505 100% 13,820 100% 30,486 100% 26,669 100% (excluding R-APDRP/IPDS) Scheme Wise Generation 5,655 32% 8,090 59% 9,448 31% 13,940 52% Transmission 2,397 14% 613 4% 2,774 9% 1,560
Slide 15: Liability Mix as on 30.09.2018
Liability Mix as on 30.09.2018 Maintaining a diversified funding profile 1% 2% 3% 54 EC Bonds 6% Other Rupee Denominated Bonds 11% Subordinated Bonds Foreign Currency Denominated 2% Bonds Rupee Term Loan from Banks/FIS 2% Foreign Currency Loans FCNR-B Loans 73% Commercial Papers Others (like CC/OD/L
Slide 16: Borrowing Profile
Borrowing Profile (Rs.’crore) Borrowings 30.09.2018 30.09.2017 Amt. % Amt. % Bonds 1,86,003 76% 1,85,493 89% Term Loans 48,483 20% 7,311 3% Short Term Loans 8,999 4% 16,181 8% Total 2,43,486 100% 2,08,985 100% of which: Rupee Denominated 2,17,233 89% 2,01,674 97% Foreign Currency Loans 26,253 11% 7,
Slide 17: PFC’s access to low cost funds
PFC’s access to low cost funds 54EC Resourse Mobilization jumped by 2 times over previous quarter 54EC Salient Features Eligibile Investors Individuals,HUF,NRI,FIs,LLP, Benefit to Investor Partnership,Banks,Mutual Funds, Insurance Co., PF funds 5 years from deemeed Tenor allotment date Long Term Cap
Slide 18: ALM Perspective
5. ALM PERSPECTIVE 18
Slide 19: ALM Perspective for FY19 – Oct to March 2019
ALM Perspective for FY 19 – Oct to March 2019 Comfortable liquidity outlook (+) Gap 26% Liquidity Status 46,802 These cash flow projections will further Cumulative Inflows (Rs. cr.) 37,222 improve on realisation of NPAs which are Cumulative Outflows (Rs. cr.) (+) Gap 26% under various stages of reso
Slide 20: Shareholders Outlook
6. SHAREHOLDERS OUTLOOK 20
Slide 21: Shareholders Outlook: Dividend Performance and Shareholding
Shareholders Outlook Dividend Performance 66% GoI Shareholding Consistent Dividend Pay out Track 1 Record Particulars 30.09.2018 30.09.2017 Dividend Payout as a % of Equity President of India 65.64% 66.35% Share Capital FIIs & FPIs 11.34% 15.41% 78% 69% Indian FIs & Banks 7.09% 8.23% Bodies Corporat
Slide 22: Shareholders Outlook: Valuation Ratios
Shareholders Outlook Equity market valuation ratios indicate potential for upside Q2 FY 19 Q1 FY 19 Q2 FY 18 H1 FY 19 H1 FY 18 EPS (in Rs.) 20.53 20.81 18.57 20.67 17.79 Book Value Per Share (in Rs.) 144.97 142.31 142.31 144.97 142.31 Market price per Share (in Rs.)* 76.15 77.15 121.85 76.15 121.85
Slide 23: Thanks!
Thanks! Any questions? You can reach PFC’s Investor Relations Team at investorrelations@pfcindia.com. Investor Relations Team : ▷ Mr. B.S.Bisht,General Manager (+91-11- 23456846) ▷ Ms. Jasneet Guram, DGM (+91-11- 23456823) Join us: @pfclindia www.pfcindia.com 23
Slide 24: Disclaimer
Disclaimer ▷ The presentation is prepared based on stand-alone unaudited financial statements of PFC for quarter ended 30.09.2018 ▷ There is a possibility of Ind AS financial results and the additional disclosures to be updated, modified or amended because of adjustments which may be required to be