Power Finance Corporation Limited · NSE:PFC
Power Finance — Q2 FY24 Earnings Presentation
29 slides from Power Finance's earnings presentation, November 2023
Slide 1: Performance Highlights
Funding for a brighter Tomorrow Performance Highlights Quarter ended 30th September 2023 Power Finance Corporation Ltd. A Maharatna PSU
Slide 2: Table of Contents
Table of Contents A PFC At a Glance 1. Powering Nation’s Development 2. PFC Steering into new directions 3. PFC Group Structure 1. Consolidated Highlights B Consolidated Performance 2. Key Consolidated Financials 1. Highlights C Standalone Performance 2. Earning Update 3. Asset Quality 4. Operationa
Slide 3: PFC at a Glance
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Slide 4: Powering Nation's Development
Powering Nation’s Development Government’s key financial Highest Long Term Majority Owned by partner for driving reforms Domestic Rating Government of India & developments in Power of ‘AAA’ Sector Largest NBFC Group in India #Amongst the top 10 #34 in Fortune 500 profit-making CPSEs as India’2022 PF
Slide 5: PFC steering into new directions
PFC steering into new directions Driving India’s Infrastructure growth Strategic approach for risk diversification- Infra book will be build up gradually Initial focus on associating with projects of national importance and large- scale greenfield projects Since August’22, PFC sanctioned Rs. 24,802
Slide 6: PFC Group Structure
PFC Group Structure Power Finance Corporation Associates Subsidiaries Ultra Mega PFC PFC 100% 100% 100% REC Ltd. 52.63% Power Projects Consulting Projects 6 5
Slide 7: Consolidated Performance
Consolidated Performance 3 6
Slide 8: Consolidated Highlights
Consolidated Highlights Consolidated net NPA Consolidated loan asset ratio reaches below 1% book crosses Rs. 9 lakh 29% increase Update on Late 21% increase in crores registered in Profit Payment Surcharge • Net NPA ratio of 0.98% in consolidated net worth(1) after Tax • Rs. 9,23,724 crores as on Ru
Slide 9: Key Consolidated Financials
Key Consolidated Financials (Rs.’crore) Q2 FY 24 Q1 FY 24 Q2 FY 23 H1 24 H1 23 INTEREST INCOME 22,095 20,816 19,225 42,911 37,531 INTEREST EXPENSE 14,313 13,670 11,413 27,983 22,250 NET INTEREST INCOME 7,782 7,146 7,812 14,928 15,281 PROFIT AFTER TAX 6,628 5,982 5,229 12,610 9,809 TOTAL COMPREHENSIV
Slide 10: Standalone Performance
Standalone Performance 3 9
Slide 11: 1. Highlights
Funding for a Brighter Tomorrow 1. Highlights Standalone Performance 11
Slide 12: H1'24 in Perspective
H1’24 in Perspective Tangible progress in DISCOM 34% increase in PAT for Strong capital indicators 2.5 times jump in schemes H1’24 YoY disbursement Update on LPS (1) Update on RDSS (2) • Rs. 55,562 cr. disbursed • CRAR at 24.86% for H1’24, • Rs. 70,499 cr. sanctioned • Action plan for 12 • Rs. 6,854
Slide 13: 2. Earning Update
Funding for a Brighter Tomorrow 2. Earning Update Standalone Performance 13
Slide 14: Revenue & Growth
Revenue & Growth (Rs.’crore) Q2 FY 24 Q1 FY 24 Q2 FY 23 H1 24 H1 23 INTEREST INCOME 10,692 10,124 9,533 20,816 18,462 INTEREST EXPENSE 6,963 6,621 5,685 13,584 11,146 NET INTEREST INCOME 3,729 3,503 3,848 7,232 7,316 PROFIT AFTER TAX 3,847 3,007 2,999 6,854 5,108 TOTAL COMPREHENSIVE 4,278 3,131 2,76
Slide 15: Key Ratios
Key Ratios (Ratios in %) H1 24 FY 23 H1 23 YIELD ON EARNING ASSETS 9.92 10.04 10.02 COST OF FUNDS 7.41 7.51 7.30 INTEREST SPREAD ON EARNING ASSETS 2.51 2.53 2.72 NET INTEREST MARGIN ON EARNING 3.37 3.36 3.51 ASSETS CRAR 24.86 24.37 24.29 NET WORTH Rs.74,445 cr. Rs.68,202 cr. Rs.62,860 cr. (SHARE CAP
Slide 16: 3. Asset Quality
Funding for a Brighter Tomorrow 3. Asset Quality Standalone Performance 16
Slide 17: Asset Synopsis
Asset Synopsis Government Sector Majority Lending to Govt. 82% Sector Zero additions to NPA in last one year Renewable loan book(1) increases remarkably by 37% from H1’23 Private Sector 18% Loan Assets Disbursements Net NPA Ratio Renewable loan asset portfolio Rs.4,49,458 cr. Rs.55,562 cr. 1% Rs.52,
Slide 18: Robust asset quality
Robust asset quality Net NPA Ratio touches 1%- the lowest in last 6 years 9.39% 8.08% 5.70% 5.61% Continuously improving asset quality 4.55% 3.80% 3.91% The decreasing NPA trend 3.67% testament to PFC’s successful 2.09% resolution efforts 1.76% 1.07% 1% Net NPA Ratio Gross NPA Ratio FY 19 FY 20 FY 2
Slide 19: Provisioning Snapshot - 30.09.2023
Provisioning Snapshot -30.09.2023 Provisioning Status as on 30.09.2023 (Rs.’ crore) 73% provisioning against Stage III OUTSTANDING LOAN ASSETS Assets (NPA) STAGE III STAGE I & II STAGE III TOTAL (as % of Gross Loan Assets) Government Sector 3,70,077 NIL 3,70,077 OUTSTANDING STAGE III (IN %) Private
Slide 20: Resolution Status- Stage III Assets
Resolution Status- Stage III Assets Resolution status of Rs.16,497 cr. of loan assets in Stage 3 NCLT Resolution Outside NCLT Resolution 13 Projects – Rs.13,899 cr. 9 Projects – Rs.2,588 cr. 77% Provision 52% Provision Lowest Net NPA Ratio of 1% in last 6 years 20
Slide 21: 4. Operational Performance
Funding for a Brighter Tomorrow 4. Operational Performance Standalone Performance 21
Slide 22: Loan Asset - Composition
Loan Asset - Composition Loan Asset Mix (Rs.’crore) As on 30.09.2023 As on 30.09.2022 Others Gross Loan Assets 4,49,458 3,76,696 2% Scheme Wise T&D 47% Generation 2,29,421 2,14,781 - Conventional Generation 1,77,296 1,76,799 - Renewable Energy 52,126 37,982 - Large Hydro Projects (>25MW) 15,664 16,1
Slide 23: Disbursement Composition
Disbursement Composition (Rs.’crore) Q2 FY 24 Q2 FY 23 H1 FY 24 H1 FY 23 Amt % Amt % Amt % Amt % Disbursements 32,770 100% 17,147 100% 55,562 100% 21,790 100% Scheme Wise Generation 7,280 22% 8,942 52% 12,378 22% 11,884 54% Transmission 266 1% 1,025 6% 2,346 4% 1,442 7% Distribution 22,779 70% 7,124
Slide 24: Liability Mix as on 30.09.2023
Liability Mix as on 30.09.2023 83% exchange risk hedged on total FC portfolio 91% exchange risk hedged Domestic Bonds RTL from Rs.2,24,607cr. (58%) Banks/FI’s for FCL up to 5 years residual Rs. 70,295cr. (18%) maturity Commercial Foreign Currency Papers Borrowing Rs.3,85,693 cr. Nil Rs. 67,690 cr. (
Slide 25: 5. Shareholder Outlook
Funding for a Brighter Tomorrow 5. Shareholder Outlook Standalone Performance 25
Slide 26: Shareholder Outlook as on 30.09.2023
Shareholder Outlook as on 30.09.2023 PFC delivering Dividend Yield1 more than Bank FD return EPS (Annualized) Rs.41.54 Price to Earning Ratio 6.06 Book Value Per Share Rs.225.58 QIB Price to Book Value Ratio 1.12 PFC issued bonus shares in the ratio of 1:4 Above ratios are for H1 FY’24 & are based o
Slide 27: Investor Resources
Investor Resources Annual Report https://www.pfcindia.com/Home/VS/72 Financial results https://www.pfcindia.com/Home/VS/73 Join us: @pfclindia Investor https://www.pfcindia.com/Home/VS/10201 announcements www.pfcindia.com Investor FAQs https://www.pfcindia.com/FAQ Recent reports =https://cea.nic.in/
Slide 28: Contact Information
Contact Information Investor Relations investorrelations@pfcindia.com Team Join us: @pfclindia Equity Share investorsgrievance@pfcindia.com Queries www.pfcindia.com 54EC Bonds - 54ECinvestorcell@pfcindia.com Bond Queries Other Bonds - bondsinvestorcell@pfcindia.com 28
Slide 29: Disclaimer
Disclaimer The presentation is prepared based on consolidated/stand-alone un-audited financial statements of PFC for quarter ended 30.09.2023. 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 requ