Power Finance Corporation Limited · NSE:PFC
Power Finance — Q4 FY2019 Earnings Presentation
28 slides from Power Finance's earnings presentation, Mar 31, 2019
Slide 1: Performance Highlights – Quarter ended 31st March 2019
Power Finance Corporation Limited A Navratna PSU Performance Highlights Quarter ended 31st March 2019 54EC Foreign Borrowings Renewables 54EC Bonds Funding for a Brighter Tomorrow….
Slide 2: Table of Contents
Table of Contents A. Financial Year Highlights B. Stand Alone Financials 1. Earning Updates 2. Asset Quality 3. Operational Performance 4. Shareholders Outlook C. Consolidated Snapshot 2
Slide 3: A. Financial Year Highlights
A. FINANCIAL YEAR HIGHLIGHTS
Slide 4: Performance at a Glance
Performance at a Glance FY 18-19 VS FY 17-18 SNAPSHOT – As on 31st MARCH 2019 (Rs.’crore) Profit & Loss Highlights Q4’19 Q3’19 Rs.6,953 cr. Rs.3,14,667 cr. Interest Income 7,634 7,262 Interest Expense 4,957 4,815 Net Interest Income 2,677 2,447 GROSS Net Interest Margin on Earning 58% LOAN 13% 3.46%
Slide 5: B. Stand Alone Financials
B. STAND ALONE FINANCIALS
Slide 6: Earning Updates
1. EARNING UPDATES 6
Slide 7: Earning Updates – Revenue & Growth
Earning Updates Revenue & Growth (Rs.’crore) Q4 FY 19 Q3 FY 19 Q4 FY 18 FY 19 FY 18 Interest Income 7,634 7,262 6,086 28,447 25,609 Interest Expense 4,957 4,815 4,232 19,146 16,915 Net Interest Income 2,677 2,447 1,854 9,301 8,694 Profit After Tax 2,118 2,084 796 6,953 4,387 Cumulative Provisions 16
Slide 8: Earning Updates – Key Ratios
Earning Updates Key Ratios (Ratios in’%) Q4 FY 19 Q3 FY 19 Q4 FY 18 FY 19 FY 18 Yield on Earning Assets 10.66 10.65 10.56 10.62 10.64 Cost of Funds 7.68 7.97 7.97 7.95 8.21 Interest Spread on Earning Assets 2.98 2.68 2.59 2.67 2.43 Net Interest Margin on Earning Assets 3.46 3.42 3.46 3.37 3.47 Net w
Slide 9: Asset Quality
2. ASSET QUALITY 9
Slide 10: Asset Quality Snapshot – Total Portfolio
Asset Quality Snapshot – Total Portfolio Loan Book of Rs.3,14,667 cr. as on 31.03.2019 No Stress – Regular in Government Sector Servicing 83% Rs. 2,61,055 cr. Rs.24,072 cr. No Stress – Regular in Private Sector Servicing 17% Rs.53,612 cr. Stressed Rs.29,540 cr. 91% of Loan Assets are regular in serv
Slide 11: Provisioning Snapshot – Total Portfolio
Provisioning Snapshot – Total Portfolio (Rs.’crore) Status as on 31.03.2019 Stage I Stage III (NPA) as & Stage III % of Total Loan Total Stage II Assets Outstanding Loan Assets Government Sector 2,61,055 - Nil 2,61,055 Private Sector 24,072 29,540 9.39% 53,612 Total Outstanding Amount 2,85,127 29,54
Slide 12: Resolution Status – Stage III Assets (1/3)
Resolution Status – Stage III Assets (1/3) Resolution status of Rs.29,540 cr. of loan assets in Stage 3 NCLT Resolution Outside NCLT Resolution ` 17,647 cr. ` 11,893 cr. 72% Provisioning/Reserve Reserves Includes Stage I Provision + Reserve for Bad & doubtful debts + Sec 45 IC Reserve 12
Slide 13: Resolution Status – Stage III Assets (2/3)
Resolution Status – Stage III Assets (2/3) 14 projects of Rs.17,647 cr. are in NCLT Application filed & admitted 62% 6 Projects ` 3,046 cr. Provision Application filed but Not admitted yet 51% 6 Projects ` 12,966 cr. Provision Liquidation order passed in NCLT 93% 2 Projects ` 1,635 cr. Provision 13
Slide 14: Resolution Status – Stage III Assets (3/3)
Resolution Status – Stage III Assets (3/3) 15 projects of Rs.11,893 cr. being resolved outside NCLT 100% principal recovery envisaged 11% 3 Projects ` 1,410 cr. Provision Resolution under SARFAESI/DRT 100% 4 Projects ` 298 cr. Provision Resolution plan under discussion 46% 45% 86 Projects ``10,186 c
Slide 15: Operational Performance
3. OPERATIONAL PERFORMANCE 15
Slide 16: Loan Asset - Composition
Loan Asset - Composition Increasing thrust towards Transmission & Distribution (T&D) business Scheme Wise Loan Asset Composition As on 31.03.2019 As on 31.03.2018 Renewable 5% Generation Renewable Generation (excluding 4% (excluding Renewable) Renewable) 71% 66% T&D 28% T&D 24% Others Others 1% 1% (
Slide 17: Loan Assets - Composition
Loan Assets - Composition (Rs.’crore) As on 31.03.2019 As on 31.03.2018 Amt. Amt. Gross Loan Assets 3,14,667 2,79,329 Scheme Wise Generation 2,22,965 2,10,765 - Renewable Energy 15,390 12,293 - Other than Renewable Energy 2,07,575 1,98,472 Transmission 25,481 21,746 Distribution 63,094 43,745 Others
Slide 18: Disbursements - Composition
Disbursements - Composition (Rs.’crore) Q4 FY 19 Q4 FY 18 FY 19 FY 18 Amt. % Amt. % Amt. % Amt. % Disbursements 22,543 100% 26,852 100% 67,678 100% 64,414 100% Scheme Wise Generation 10,440 46% 15,690 58% 28,996 43% 38,428 60% Transmission 2,740 12% 3,470 13% 7,129 11% 6,536 10% Distribution 9,300 4
Slide 19: Borrowing Profile
Borrowing Profile Diversification of Funding Profile ` 2,75,691 Cr. Outstanding Borrowings as on 31.03.2019 Exchange Risk Hedging 62% of total portfolio hedged Domestic 7.95% Foreign Borrowings Borrowings Borrowing Cost 90% 10% 87% hedging for portfolio with residual maturity upto 8 yrs (outstanding
Slide 20: Borrowing Profile – Liability Mix
Borrowing Profile Outstanding Liability Mix as on 31.03.2019 Rupee Denominated Bonds ` 1,80,329 cr. 17% 10% Rupee Term Loan from ` 46,204 cr. Banks/FI's 4% Foreign Currency Borrowings ` 28,827 cr. 0.28% 3% 0.51% Commercial Papers ` 9,716 cr. 0.22% Subordinated Bonds ` 9,212 cr. 65% 54 EC Bonds ` 784
Slide 21: PFC's access to low cost funds
PFC’s access to low cost funds 2.7 Time Jump in 54EC Resourse Mobilization from previous financial year 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 Te
Slide 22: Shareholders Outlook
4. SHAREHOLDERS OUTLOOK 22
Slide 23: Shareholders Outlook as on 31.03.2019
Shareholders Outlook as on 31.03.2019 Equity market valuation ratios indicate 59.05% GoI Shareholding potential for upside 0.80% 0.05% EPS ` 26 4.01% 0.73% 6.95% 11.79% Book Value Per Share ` 164 59.05% 16.63% Market Price Per Share ` 123 Price to Earning Ratio 4.7 President of India FIIs & FPIs Mut
Slide 24: C. Consolidated Snapshot
C. CONSOLIDATED SNAPSHOT
Slide 25: PFC Becomes Holding Company of REC Ltd
PFC Becomes Holding Company of REC Ltd PFC Acquires 52.63% Equity Stake in REC Ltd. Post Acquisition Highlights Acquisition a step towards merger Largest financial player in power sector 3rd highest profit making financial organization 3rd highest profit making PSU after IOCL & ONGC. Highest domesti
Slide 26: PFC at a Glance
PFC at a Glance Power Finance Corporation SUBSIDIARIES JOINT ASSOCIATES VENTURE 36.36% Ultra Mega PFC Power Equity 21.70% Power Consulting Capital REC EESL Projects Advisors 100% 100% 100% 52.63% 58.06% 1. EESL – Energy Efficiency Service Ltd. 2. 58.06% stake in EESL is consolidated stake of PFC (36
Slide 27: Consolidated Snapshot
Consolidated Snapshot Net Worth ` 63,484 cr. Loan Asset PAT ` 5,95,877 cr. ` 12,640 cr. PFC Consolidated NII Net NPA ` 18,815 cr. 4.2% CRAR 16.78% Note: Net worth includes non-controlling interest. 27
Slide 28: 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 28