Power Finance Corporation Limited · NSE:PFC
Power Finance — Q4 FY2021 Earnings Presentation
33 slides from Power Finance's earnings presentation, June 2021
Slide 1: Performance Highlights
Power Finance Corporation Ltd. A Navratna PSU Performance Highlights Quarter/Financial Year ended 31st March 2021 Funding for a righter Tomorrow
Slide 2: Table of Contents
Table of Contents A. PFC at a Glance B. Stand Alone Performance 1. Highlights 2. Earning Update 3. Asset Quality 4. Operational Performance 5. Shareholder Outlook C. Consolidated Performance 1. Highlights
Slide 3: A. PFC at a Glance
A. PFC at a Glance 3
Slide 4: Leading Financer in Power Sector
Leading Financer in Power Sector Largest Govt. owned financing provider Group in the Indian power sector Involving synergies of 2 “Navratna” Companies - PFC & REC Majority Highest Long Key financial Owned by Term Largest Group #33 in partner for Government of Domestic in Indian Power Fortune 500 Gov
Slide 5: PFC Group Structure
PFC Group Structure Power Finance Corporation Associates Subsidiaries Joint Venture 24.97% 22.18% Ultra Mega Power PFC Consulting REC Ltd. 22.18% EESL Projects (100%) (52.63%) (47.15%) (100%) 1. EESL – Energy Efficiency Service Ltd. 2. 47.15% stake in EESL is consolidated stake of PFC (24.97%) & REC
Slide 6: B. Stand Alone Performance
B. Stand Alone Performance 6
Slide 7: 1. Highlights
1. Highlights
Slide 8: Macro Backdrop
Macro Backdrop Recent Developments Power Sector As on 30.04.2021 Power Sector (source: CEA) - Electricity Generation rose by 42.5% in April ’21 from April PLF 1 Peak Demand Met1 ’20. - Solar Capacity addition in Jan-March’21 fastest since 2019. 67% 183 GW Economic Growth Indicators (source: media re
Slide 9: Strong Performance in FY21
Strong Performance in FY21 49% increase in 187 bps increase in Lowest Net NPA 25% Stressed Book PFC’s Credit Rating PAT from FY’20 CRAR from FY’20 levels in last 4 years Resolved in FY 21 re-affirmed Rs.8,444 cr. in FY’21 vs. FY’21 CRAR at 18.83% 2.09% in FY’21 vs. 3.80% in 4 projects of Rs.6,844 cr
Slide 10: Solid Financial Position
Solid Financial Position Net worth 16% NII 28% Spread 27bps 12,951 52,393 3.10% 2.43% 2.67% 2.83% 43,288 45,164 9,459 10,097 36,956 8,606 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 Net worth (Rs' cr.) Net Interest Income (Rs' cr.) Spread (in' %) Continuous Growth in Key
Slide 11: Strategy Forward
Strategy Forward 01 Tapping Opportunities in E- Continued Focus on Mobility Space Renewable Business 02 04 Continue to Fund GOI. initiatives like Discom Increasing Thrust in T&D Package etc. Space 03 11
Slide 12: 2. Earning Update
2. Earning Update
Slide 13: Revenue & Growth
Revenue & Growth (Rs.’crore) Q4 FY 21 Q4 FY 20 FY 21 FY 20 Particulars Interest Income 8,876 8,285 36,146 31,950 Interest Expense 5,804 5,550 23,194 21,853 Net Interest Income 3,072 2,735 12,951 10,097 Profit After Tax 2,327 1,435 8,444 5,655 Total Comprehensive Income 2,373 1,170 8,534 5,321 (Y/E-
Slide 14: Key Ratios
Key Ratios (Ratios in %) Q4 FY 21 Q4 FY 20 FY 21 FY 20 Particulars Yield on Earning Assets 10.28 10.67 10.58 10.63 Cost of Funds 7.25 7.71 7.48 7.79 Interest Spread on Earning 3.03 2.96 3.10 2.83 Assets Net Interest Margin on Earning 3.30 3.28 3.54 3.17 Assets CRAR 18.83 16.96 18.83 16.96 Net Worth
Slide 15: 3. Asset Quality
3. Asset Quality
Slide 16: Asset Quality Snapshot
Asset Quality Snapshot Rs.3,70,771 cr. loan book as on 31.03.2021 Net NPAs continue their downward trend LOAN ASSET COMPOSITION 9.57% Pvt. 9.39% 16% 8.08% 7.39% 5.70% 4.55% 3.80% 2.09% FY 18 FY 19 FY 20 FY 21 Govt. Net Stage III Ratio Gross Stage III Ratio 84% 94% of Loan Assets are regular in servi
Slide 17: Provisioning Snapshot – 31.03.2021
Provisioning Snapshot – 31.03.2021 (Rs.’crore) Stage III (NPA) Stage I & II Stage III as % of Gross Total Loan Assets Outstanding Loan Assets - Government Sector 3,11,387 - - 3,11,387 Provisioning Status - Private Sector 38,234 21,150 - 59,384 as on 31.03.2021 Total Outstanding 3,49,621 21,150 5.70%
Slide 18: Resolution Status – Stage III Assets (1/2)
Resolution Status – Stage III Assets (1/2) 25% Stressed Book Resolved as on 31.03.2021 NCLT Resolution Outside NCLT Resolution 4 Projects of Rs.6,844 cr. RKM Powergen – Rs.5,105 cr. Jal Power – Rs. 386 cr. Resolved Suzlon Energy - Rs.915 cr. (resolved During Q4’21) during FY 21 Essar Transmission -
Slide 19: Resolution Status – Stage III Assets (2/2)
Resolution Status – Stage III Assets (2/2) Resolution status of Rs.21,150 cr. of loan assets in Stage III Under NCLT Outside NCLT Rs.15,820 cr. in NCLT Rs.5,330 cr. resolution being pursued outside NCLT 16 projects 09 projects 68% provision 51% provision 19
Slide 20: 4. Operational Performance
4. Operational Performance
Slide 21: Loan Asset – Composition
Loan Asset – Composition Continued focus on T&D and Renewable Business (Rs.’crore) As on 31.03.2021 As on 31.03.2020 Others Gross Loan Assets1 3,70,771 3,44,905 1% Scheme Wise Generation 2,27,052 2,37,178 T&D Conventional Generation 1,89,578 2,00,173 38% Renewable Energy 37,474 37,005 As on • Re
Slide 22: Disbursement Composition
Disbursement Composition (Rs.’crore) Q4 FY 21 Q4 FY 20 FY21 FY20 Amt % Amt % Amt % Amt % Disbursements 28,357 100% 20,752 100% 88,301 100% 67,997 100% Scheme Wise Generation 8,193 29% 8,880 43% 30,722 35% 36,012 53% Transmission 1,351 5% 2,911 14% 5,495 6% 7,096 10% Distribution 18,784 66% 8,710 42%
Slide 23: Key Tenets - Borrowing Strategy
Key Tenets - Borrowing Strategy Continued focus on diversifying funding Mix – launched public issue of taxable bonds in FY ’21 Enhanced Asset Liability Management – Surplus liquidity for upto 1 year time buckets Well Managed Liquidity – Implemented RBI’s LCR Framework 23
Slide 24: Liability Mix as on 31.03.2021
Liability Mix as on 31.03.2021 Commercial Papers Rs.3,080 cr. (1%) Foreign Currency Borrowing Subordinated Bonds Rs.9,212 cr. (3%) Rs.49,836 cr. (15%) 86% exchange risk RTL from Banks/FI’s Rs.3,25,095 cr. 54EC Bonds hedged for FCL with Rs. 61,099 cr. (19%) Outstanding Rs. 2,564 cr. (0.79%) Borrowing
Slide 25: 5. Shareholder Outlook
5. Shareholder Outlook
Slide 26: Shareholder Outlook as on 31.03.2021
Shareholder Outlook as on 31.03.2021 President of India FIIs & FPIs 55.99% 17.32% Equity Ratios Indicate Potential For Upside Mutual Funds 13.36% EPS Book Value (Annualized) Per Share Rs.31.98 Rs.198.45 As on 30.06.2020 Price to Price to Book Earning Ratio Value Ratio Indian Fis & Banks 3.57 0.58 Em
Slide 27: C. Consolidated Performance
C. Consolidated Performance 27
Slide 28: 1. Highlights
1. Highlights
Slide 29: Consolidated Snapshot
Consolidated Snapshot TOTAL INCOME - Rs.71,701 cr. FY’21 PAT- Rs.15,716 cr. LOAN ASSET - Rs.7,45,189 cr. NETWORTH - Rs.81,790 cr. PFC Consolidated for FY’21 Gross NPA- 5.29% NET NPA - 1.91% 29
Slide 30: Key Consolidated Financials
Key Consolidated Financials (Rs.’crore) Q4 FY 21 Q4 FY 20 FY 21 FY 20 Particulars Interest Income 17,728 16,044 70,845 61,628 Interest Expense 11,244 10,491 44,684 40,845 Net Interest Income 6,484 5,553 26,162 20,783 Profit After Tax 3,906 694 15,716 9,477 Total Comprehensive Income 3,955 (100) 16,2
Slide 31: Thanks Any Questions?
Thanks Any Questions? For questions on PFC’s financial performance, you can reach PFC Investor Relations Team at investorrelations@pfcindia.com Join us: @pfclindia www.pfcindia.com 31
Slide 32: Contact Information For Investors
Contact Information For Investors For investment in 54 EC Capital Gain Bonds - 54ECinvestorcell@pfcindia.com For all Bonds Queries - bondsinvestorcell@pfcindia.com Tel - 011-23456000 Join us: @pfclindia www.pfcindia.com 32
Slide 33: Disclaimer
Disclaimer ▷ The presentation is prepared based on consolidated/stand-alone audited financial statements of PFC for financial year ended 31.03.2021. ▷ There is a possibility of Ind AS financial results and the additional disclosures to be updated, modified or amended because of adjustments which may