Power Finance Corporation Limited · NSE:PFC
Power Finance — Q2 FY2025 Earnings Presentation
31 slides from Power Finance's earnings presentation, Sep 30, 2024
Slide 1: Performance Highlights Quarter ended 30th September 2024
Funding for a brighter Tomorrow Performance Highlights Quarter ended 30th September 2024 Power Finance Corporation Ltd. A Maharatna PSU
Slide 2: Table of Contents
A PFC AT A GLANCE Powering Nation’s Development PFC Group Structure PFC Financing Progress ESG at PFC Table of B CONSOLIDATED PERFORMANCE Contents Consolidated Highlights Key Consolidated Financials C STANDALONE PERFORMANCE Highlights Earning Update Asset Quality Operational Performance Shareholder
Slide 3: PFC at a Glance
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Slide 4: Powering Nation's Development
Majority owned Highest Profit PFC IFSC subsidiary is Powering by Government of making NBFC in the first company in power and infra India India* Nation’s lending space in IFSC GIFT City Development Largest NBFC Group in India Government’s key financial partner for #37 in Fortune 500 AAA rated NBFC dr
Slide 5: PFC Group Structure
PFC Group Structure PFC Consulting 100% 100 % PFC Infra Finance 100% IFSC Subsidiaries 100 REC Ltd. 52.63% % Power Finance Corporation 100 % Ultra Mega 47.15 100% % Power Projects Associates 52.63 % 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 Acquired majority Incorporated as FPO, GOI stake in REC, - INR
Slide 7: ESG At PFC
ESG At PFC Vision- Powering Progress through Sustainability PFC is committed to playing a leading role in shaping a sustainable and resilient future for India. PFC’s ESG vision rests on three pillars: Pillar I Pillar II Pillar III Preserving Planet Promoting the Pathway towards Pursuing Prudence Inc
Slide 8: ESG Highlights
ESG Highlights* Environmental Social • More than 50 GW RE • Highest profit per employee - capacity supported, i.e. 25% of Rs. 26.46 Crore the total installed capacity • Women ratio – 21.5%, highest • More than Rs. 60,000 crores among Maharatna PSUs RE loanbook • CSR Expenditure Sanctioned in • Large
Slide 9: Consolidated Performance
Consolidated Performance 9
Slide 10: Consolidated Highlights
Consolidated Highlights 14% increase registered 13% Y-O-Y growth in 17% increase in The consolidated Gross in Consolidated Profit Consolidated loan asset consolidated Net NPA Ratio at below 3% After Tax (PAT) book Worth(1) • Rs. 14,397 crores in • Rs. 10,39,472 crores as • Rs. 1,45,158 crores as on
Slide 11: Key Consolidated Financials
(Rs.’ crore) z Q2 FY 25 Q2 FY 24 H1 FY 25 H1 FY 24 INTEREST INCOME 25,398 22,095 49,925 42,911 Key Consolidated INTEREST EXPENSE 16,006 14,313 31,526 27,983 Financials NET INTEREST INCOME 9,392 7,782 18,399 14,928 PROFIT AFTER TAX 7,215 6,628 14,397 12,610 TOTAL COMPREHENSIVE 6,135 7,475 13,718 13,7
Slide 12: Standalone Performance
Standalone Performance 12
Slide 13: 1. Highlights
1.Highlights Standalone performance 13
Slide 14: H1'25 in Perspective
H1’25 in Perspective Lanco Amarkantak project resolved 18% increase in PAT registered for H1’25 A 1,920 MW thermal generation project with outstanding of Rs. 2,376 crores. Profit After Tax at Rs. 8,088 crores in H1’25 The asset has been resolved through NCLT vs Rs. 6,854 crores in H1’24 Provision re
Slide 15: 2. Earning Update
2.Earning Update Standalone performance 15
Slide 16: Revenue & Growth
(Rs.’ crore) Q2 FY 25 Q2 FY 24 H1 FY 25 H1 FY 24 INTEREST INCOME 11,909 10,692 23,736 20,816 Revenue & Growth INTEREST EXPENSE 7,501 6,963 15,000 13,584 NET INTEREST INCOME 4,408 3,729 8,736 7,232 PROFIT AFTER TAX 4,370 3,847 8,088 6,854 TOTAL COMPREHENSIVE 4,542 4,278 8,579 7,409 INCOME Some figure
Slide 17: Key Ratios
(Ratios in %) H1 FY 25 FY 24 H1 FY 24 YIELD ON EARNING ASSETS 10.11 10.01 9.92 Key Ratios COST OF FUNDS 7.50 7.37 7.41 INTEREST SPREAD ON EARNING 2.61 2.64 2.51 ASSETS NET INTEREST MARGIN ON 3.57 3.46 3.37 EARNING ASSETS CRAR 24.38 25.41 24.86 NET WORTH (SHARE CAPITAL + Rs.85,924 cr. Rs.79,203 cr. R
Slide 18: 3. Asset Quality
3. Asset Quality Standalone performance 18
Slide 19: Asset Synopsis - H1'25
Asset Synopsis –H1’25 No new NPA added in more 74% provisioning maintained than one year on NPA assets (Stage-III) Loan Assets Rs.4,93,363 cr. Government Sector 80% Disbursements Rs.66,146 cr. Majority Lending To Govt. Sector Net NPA Ratio 0.72 % Private Sector 20% Assets under advance stages of res
Slide 20: Robust Asset Quality
Robust Asset Quality Net NPA Ratio below 1% 9.39% 8.08% Continuously improving asset quality 5.70% 5.61% Decreasing NPA trend 4.55% 3.91% testament to PFC’s 3.80% 3.34% 3.38% successful resolution efforts 2.71% 2.09% 1.76% 1.07% 0.85% 0.87% 0.72% Net NPA Ratio Gross NPA Ratio FY 19 FY 20 FY 21 FY 22
Slide 21: Provisioning Snapshot - 30.09.2024
Provisioning Snapshot -30.09.2024 Provisioning Status as on 31.03.2024 30.09.2024 (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 3,93,284 NIL 3,93,284 OUTSTANDING STAGE III (IN
Slide 22: Resolution Status - Stage III Assets
Resolution Status- Stage III Assets Rs.11,515 cr. in NCLT 12 projects Resolution status Under NCLT of Rs. 13,377 cr. 78% provision of loan assets in Stage 3 Rs.1,861 cr. resolution being pursued outside NCLT 6 projects Outside NCLT 48% provision 22
Slide 23: 4. Operational Performance
4. Operational Performance Standalone performance 23
Slide 24: Loan Asset - Composition
Loan Asset- Composition (Rs.’crore) Provisioning Status as on Loan Asset Mix 31.03.2024 As on 30.09.2024 As on 30.09.2023 Gross Loan Assets 4,93,363 4,49,458 74% provisioning against Stage III Scheme Wise Infrastructure Assets (NPA) 1.91% Generation 2,34,998 2,29,421 Others 2.37% - Conventional Gene
Slide 25: Disbursement Composition
Disbursement Composition Provisioning Status as on (Rs.’crore) 31.03.2024 Q2 FY 25 Q2 FY 24 H1 FY 25 H1 FY 24 Amt % Amt % Amt %74% provisioning Amt against%Stage III Disbursements 46,663 100% 32,770 100% 66,146 100% Assets (NPA)100% 55,562 Scheme Wise Generation 14,910 32% 7,280 22% 20,306 31% 12,37
Slide 26: Borrowing Mix as on 30.09.2024
Borrowing Mix as on 30.09.2024 Domestic Bonds RTL from Banks/FI’s Rs.2,49,533cr. (60%) Rs. 75,884cr. (18%) Foreign Currency Borrowing Rs. 77,000 cr. (18%) Commercial Papers Nil Subordinated Liabilities Rs.3,512 cr.* (0.84%) Others 54EC Bonds Rs. 1,810cr. (0.43%) Rs. 9,497 cr. (2%) 97%** Rs.4,17,236
Slide 27: 5. Shareholder Outlook
5. Shareholder Outlook Standalone performance
Slide 28: Shareholder Outlook as on 30.09.2024
Shareholder Outlook as on 30.09.2024 EPS (Annualized) Rs.49.02 55.99 % 17.74 % 11.59 % President of India FIIs & FPIs Mutual Funds Price to Earning Ratio 9.96 7.10 % 5.04 % 1.01 % Resident Individuals QIB Bodies Corporate Book Value Per Share Rs.260.37 1.14 % 0.36 % 0.03 % Others Indian FIs & Banks
Slide 29: Investor Resources
Investor Resources Annual Report https://pfcindia.com/ensite/Home/VS/72 Financial results https://pfcindia.com/ensite/Home/VS/73 ESG Report https://pfcindia.com/ensite/Home/VS/10201 Join us: @pfclindia Investor https://pfcindia.com/ensite/Home/VS/10201 announcements www.pfcindia.com Investor FAQs ht
Slide 30: Contact information
Contact information Investor Relations Team investorrelations@pfcindia.com Join us: @pfclindia 54EC Bonds - 54ECinvestorcell@pfcindia.com Bond Queries Other Bonds - bondsinvestorcell@pfcindia.com www.pfcindia.com Equity Share Queries investorsgrievance@pfcindia.com 30
Slide 31: Disclaimer
Disclaimer The presentation is prepared based on consolidated/stand-alone unaudited financial statements of PFC for quarter ended 30.09.2024. 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 requi