Power Finance Corporation Limited · NSE:PFC
Power Finance — Q4 FY2024 Earnings Presentation
34 slides from Power Finance's earnings presentation, Mar 31, 2024
Slide 1: Performance Highlights Quarter/FY ended 31st March 2024
Funding for a brighter Tomorrow Performance Highlights Quarter/FY ended 31st March 2024 Power Finance Corporation Ltd. A Maharatna PSU
Slide 2: Table of Contents
Table of Contents 1. Powering Nation’s Development A PFC at a Glance 2. PFC Group Structure 3. PFC Financing Progress 4. PFC to go Global- IFSC subsidiary 1. Consolidated Highlights B Consolidated Performance 2. Key Consolidated Financials 1. Highlights C Standalone Performance 2. Earning Update 3.
Slide 3: PFC at a Glance
co) U ¢ & UO © ~ © U LL. A.
Slide 4: Powering Nation's Development
Powering Nation’s Development Government’s key financial Highest Profit Majority Owned by partner for driving reforms making NBFC in India Government of India & developments in Power Sector Largest NBFC Group in India First Govt. NBFC to #37 in Fortune 500 establish a foreign India’2023 Largest Rene
Slide 5: PFC Group Structure
PFC Group Structure Power Finance Corporation Associates Subsidiaries Ultra Mega PFC PFC PFC Infra 100% 100% 100% REC Ltd. 100% 52.63% 100% Power Projects Consulting Projects Finance IFSC 5 5
Slide 6: PFC Financing Progress - Milestone by Milestone
PFC Financing Progress - Milestone by Milestone From its incorporation in 1986, till date, PFC has achieved multiple milestones, from its IPO in 2007 to its first green bond issue, to doubling of its loan portfolio in less than a decade Incorporated FPO, GOI 1st green bond - INR 4 trillion in loan a
Slide 7: PFC to Go Global - Foreign Subsidiary incorporated in IFSC GIFT City
PFC to Go Global- Foreign Subsidiary incorporated in IFSC GIFT City Vision is to expand business and maintain long term growth trajectory A landmark milestone- IFSC entity will open avenues in international lending space for PFC. Leveraging GIFT City benefits to strengthen PFC’s brand globally PFC’s
Slide 8: Consolidated Performance
Consolidated Performance 3 8
Slide 9: Consolidated Highlights
Consolidated Highlights 16% growth in The consolidated net consolidated loan asset NPA ratio at below 1% 25% increase 20% increase in Update on Late Payment book registered in Profit consolidated net worth(1) Surcharge Rules after Tax • Rs. 9,90,824 crores as on • Net NPA ratio of 0.85% in • PFC Gro
Slide 10: Key Consolidated Financials
Key Consolidated Financials (Rs.’crore) Q4 FY 24 Q4 FY 23 FY 24 FY 23 INTEREST INCOME 23,891 19,617 90,085 76,496 INTEREST EXPENSE 15,152 12,637 57,962 47,017 NET INTEREST INCOME 8,739 6,980 32,123 29,479 PROFIT AFTER TAX 7,556 6,129 26,461 21,179 TOTAL COMPREHENSIVE 9,137 6,975 28,894 20,048 INCOME
Slide 11: Standalone Performance
Standalone Performance 3 11
Slide 12: 1. Highlights
Funding for a Brighter Tomorrow 1. Highlights Standalone Performance 12
Slide 13: FY'24 in Perspective
FY’24 in Perspective Highest Profit making 14% double digit Renewable loan asset 36% Y-o-Y increase in Stressed asset book NBFC in India in FY’24 growth recorded in portfolio crossed Rs. 54EC bonds portfolio reduced by more than loan asset book 60,000 crores 45% in the last 5 years • 24% increase re
Slide 14: PFC's Road Ahead - Financing for Nation's Progress
PFC’s Road Ahead –Financing for Nation’s Progress Financing Clean & Secure Energy Future for India Supporting clean and emerging technologies - Solar, Wind, Energy storage (Battery & Pumped Hydro), E-mobility, Green Hydrogen etc. Financing for energy security - Conventional generation and its renova
Slide 15: Building a Greener Future
Building a Greener Future Adopting a multi-dimensional approach towards ESG Dedicated ESG Focal point Expanding Green Portfolio A dedicated ESG unit Financing the entire green spectrum established for steering ESG – From traditional renewable to initiatives emerging technologies such as e- mobility,
Slide 16: 2. Earning Update
Funding for a Brighter Tomorrow 2. Earning Update Standalone Performance 16
Slide 17: Revenue & Growth
Revenue & Growth Consistent financial performance year on year (Rs.’ crore) Q4 FY 24 Q4 FY 23 FY 24 FY 23 INTEREST INCOME 11,494 9,617 43,641 37,645 INTEREST EXPENSE 7,256 6,140 28,014 23,283 NET INTEREST INCOME 4,238 3,477 15,627 14,362 PROFIT AFTER TAX 4,135 3,492 14,367 11,605 TOTAL COMPREHENSIVE
Slide 18: Key Ratios
Key Ratios Stable key financial parameters year on year (Ratios in %) For the period ended 31st For the period ended 31st March,2024 March,2023 YIELD ON EARNING ASSETS 10.01 10.04 COST OF FUNDS 7.37 7.51 INTEREST SPREAD ON EARNING ASSETS 2.64 2.53 NET INTEREST MARGIN ON EARNING ASSETS 3.46 3.36 CRAR
Slide 19: 3. Asset Quality
Funding for a Brighter Tomorrow 3. Asset Quality Standalone Performance 19
Slide 20: Asset Synopsis - FY'24
Asset Synopsis -FY’24 Government Sector Majority Lending to Govt. 81% Sector No new NPA added in more than one year 74% provisioning maintained on NPA assets (Stage-III) Private Sector 19% Assets under advance Loan Assets Disbursements Net NPA Ratio stages of resolution Rs.4,81,462 cr. Rs.1,27,656 c
Slide 21: Robust asset quality
Robust asset quality Net NPA Ratio below 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% Decreasing NPA trend 3.34% testament to PFC’s successful 2.09% resolution efforts 1.76% 1.07% Net NPA Ratio Gross NPA Ratio 0.85% FY 19 FY 20 FY 21 F
Slide 22: Provisioning Snapshot - 31.03.2024
Provisioning Snapshot -31.03.2024 Provisioning Status as on 31.03.2024 (Rs.’ crore) 74% provisioning against Stage III OUTSTANDING LOAN ASSETS Assets (NPA) STAGE III STAGE I & II STAGE III TOTAL (as % of Gross Loan Assets) Government Sector 3,89,525 NIL 3,89,525 OUTSTANDING STAGE III (IN %) Private
Slide 23: Resolution Status - Stage III Assets
Resolution Status- Stage III Assets Resolution status of Rs.16,073 cr. of loan assets in Stage 3 NCLT Resolution Outside NCLT Resolution 13 Projects – Rs.13,899 cr.* 8 Projects – Rs.2,174 cr. 77% Provision 55% Provision Lowest Net NPA Ratio of 0.85% in last 6 years * Includes 7 projects worth Rs. 2,
Slide 24: Resolution Update - Stage III Assets (NCLT)
Resolution Update-Stage III Assets Major projects being resolved through NCLT Outstanding amount as on 31.03.2024 Capacity (in MW) COD Status (Rs. crores) 3 units Commissioned KSK Mahanadi Power 3,300 3,600 (1,800 MW) SINNAR THERMAL POWER LTD. 3,001 1,350 Commissioned 2 units Commissioned LANCO AMAR
Slide 25: Resolution Update - Stage III Assets (outside NCLT)
Resolution Update-Stage III Assets Major projects being resolved outside NCLT Outstanding amount as on 31.03.2024 Capacity (in MW) COD Status (Rs. crores) TRN Energy Pvt. Ltd. 1,139 600 Commissioned Shiga Energy Pvt. Ltd. 522 97 Commissioned 25
Slide 26: 4. Operational Performance
Funding for a Brighter Tomorrow 4. Operational Performance Standalone Performance 26
Slide 27: Loan Asset - Composition
Loan Asset - Composition Loan Asset Mix (Rs.’crore) As on 31.03.2024 As on 31.03.2023 Others Gross Loan Assets 4,81,462 4,22,498 4% Scheme Wise Generation 2,32,131 2,27,024 T&D 48% - Conventional Generation 1,71,923 1,78,826 - Renewable Energy 60,208 48,198 - Large Hydro Projects (>25MW) 16,095 16,2
Slide 28: Disbursement Composition
Disbursement Composition (Rs.’crore) Q4 FY 24 Q4 FY 23 FY 24 FY 23 Amt % Amt % Amt % Amt % Disbursements 48,607 100% 38,788 100% 1,27,656 100% 85,756 100% Scheme Wise Generation 10,611 22% 14,928 38% 29,068 23% 34,039 40% Transmission 2,845 6% 2,992 8% 6,139 5% 5,191 6% Distribution 26,586 55% 18,11
Slide 29: Borrowing Mix as on 31.03.2024
Borrowing Mix as on 31.03.2024 88% exchange risk hedged on total FC portfolio 93% exchange risk hedged Domestic Bonds RTL from Rs.2,38,676cr. (59%) Banks/FI’s for FCL up to 5 years residual Rs. 79,003cr. (19%) maturity Commercial Foreign Currency Papers Borrowing Rs.4,07,383 cr. Nil Rs. 72,836 cr. (
Slide 30: 5. Shareholder Outlook
Funding for a Brighter Tomorrow 5. Shareholder Outlook Standalone Performance 30
Slide 31: Shareholder Outlook as on 31.03.2024
Shareholder Outlook as on 31.03.2024 PFC delivering Dividend Yield1 more than Bank FD return EPS (Annualized) Rs.43.54 Price to Earning Ratio 8.96 Book Value Per Share Rs.240 QIB Price to Book Value Ratio 1.63 More than 2.5 times increase in share price in FY’24 Above ratios are for FY’24 & are base
Slide 32: 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://pfcindia.com/ensite/FAQs Recent reports =https://cea.nic
Slide 33: 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 33
Slide 34: Disclaimer
Disclaimer The presentation is prepared based on consolidated/stand-alone audited financial statements of PFC for quarter ended 31.03.2024. 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 require