Power Finance Corporation Limited · NSE:PFC
Power Finance — Q4 FY2022 Earnings Presentation
34 slides from Power Finance's earnings presentation, Mar 31, 2022
Slide 1: Performance Highlights, Quarter/Financial Year ended 31st March 2022
Funding for a righter Tomorrow Power Finance Corporation Ltd. A Maharatna PSU Performance Highlights Quarter/Financial Year ended 31st March 2022
Slide 2: Table of Contents
A. PFC at a Glance 1. Highlights 2. Earning Update Table of B. Stand Alone Performance 3. Asset Quality Power Finance Corporation Contents 4. Operational Performance 5. Shareholder Outlook Consolidated C. Performance 1. Highlights 2
Slide 3: A. PFC at a Glance
Power Finance Corporation 3 A. PFC at a Glance
Slide 4: Leading Financer in Power Sector
Leading Financer in Power Sector Majority Owned by Key financial partner Highest Long Term Government of India for Government in Domestic Rating Power Sector of ‘AAA’ Power Finance Corporation Highest Status of “Maharatana” for a CPSE conferred by Govt. on 12th October 2021 #365 in the world in #29
Slide 5: PFC Group Structure
PFC Group Structure Ultra Mega 100% 100% Associates Power Projects 33.33% Power 100% Power Finance Corporation Finance Corporation PFC Consulting 100% 47.15% Subsidiaries 52.63% REC Ltd. 5
Slide 6: B. Stand Alone Performance
B. Stand Alone Power Finance Corporation Performance 6
Slide 7: Stand Alone Performance: 1. Highlights
Stand Alone Performance Power Finance Corporation 1. Highlights 7
Slide 8: FY'22 in Perspective
FY’22 in Perspective Highest ever 1.5 times increase in Annual PAT 54 EC Bond mobilisation registered in FY’22 in FY 22 from FY 21 Rs.10,022 cr. in FY 22 vs. Low cost funding source Rs.8,444cr. In FY 21 with a coupon of 5% Outstanding 54 EC bond portfolio of Rs.3,999 cr. as on 31.03.2022 Power Finan
Slide 9: Status Update – Revamped Distribution Sector Scheme
Status Update – Revamped Distribution Sector Scheme Objective Current Status Reduce AT&C losses to 12-15% by States actively participating in 1 2 2024-25 formulating state specific Action Plan Reduce ACS-ARR gaps to zero by 2024-25 Projects sanctioned for 28 . Discoms in 13 States by Monitoring Comm
Slide 10: Stand Alone Performance: 2. Earning Update
Stand Alone Performance Power Finance Corporation 2. Earning Update 10
Slide 11: Revenue & Growth
Revenue & Growth (Rs.’crore) Particulars Q4FYFY2122 Q1 Q4 FY 21 FY 22 FY 21 Interest Income 8,938 8,876 36,701 36,146 Interest Expense 5,572 5,804 22,671 23,194 Power Finance Corporation Net Interest Income 3,366 3,072 14,030 12,951 Profit After Tax 2,609 2,327 10,022 8,444 Total Comprehensive Incom
Slide 12: Key Ratios
Key Ratios (Ratios in %)) Particulars Q4 FY 22 Q4 FY 21 FY 22 FY 21 Yield on Earning Assets 9.90 10.28 10.22 10.58 Cost of Funds 7.05 7.25 7.30 7.48 Power Finance Corporation Interest Spread on Earning Assets 2.85 3.03 2.92 3.10 Net Interest Margin on Earning Assets 3.55 3.30 3.62 3.54 CRAR 23.48 18
Slide 13: Stand Alone Performance: 3. Asset Quality
Stand Alone Performance Power Finance Corporation 3. Asset Quality 13
Slide 14: Asset Quality Snapshot
Asset Quality Snapshot Rs.3,73,135 cr. loan book as on 31.03.2022 Lowest Net NPA in 5 years Adequate 69% 63% GOVERNMENT 84% SECTOR Provision Levels 51% 53% leading to a Power Finance Corporation 23% PRIVATE Resilient 16% SECTOR 7.39% 4.55% 3.80% Balance Sheet 2.09% 1.76% FY 18 FY 19 FY 20 FY 21 FY 2
Slide 15: Provisioning Snapshot - 31.03.2022
Provisioning Snapshot -31.03.2022 (Rs.’crore) STAGE III STAGE I & II STAGE III as % of Gross Loan TOTAL Assets OUTSTANDING LOAN ASSETS - Government Sector 3,14,004 - - 3,14,004 Power Finance Corporation Provisioning Status - Private Sector 38,215 20,915 - 59,130 as on 31.03.2022 TOTAL OUTSTANDING 3,
Slide 16: Resolution Snapshot: Stage III Assets (1/5)
Resolution Snapshot Stage III Assets (1/5) Rs.2,787 cr. Stressed Asset Resolved in FY 22 – Essar Power MP, RS India Wind Energy, GVK Assets Ratle, Astonfield Solar & Krishna Godavari Resolved Net NPA declined to 1.76% in FY 22 vs Power Finance Corporation 2.09% in FY 21 Active resolution efforts res
Slide 17: Resolution Snapshot: Stage III Assets (2/5)
Resolution Snapshot Stage III Assets (2/5) Rs.15,338 cr. in NCLT 14 projects Resolution status Under NCLT 71% provision Power Finance Corporation of Rs.20,915 cr. of loan assets in Rs.5,578cr. resolution being Stage III pursued outside NCLT 9 projects Outside NCLT 62% provision 17
Slide 18: Resolution Update: Stage III Assets (3/5)
Resolution Update Stage III Assets (3/5) Major Q1 projects FY 21 being resolved through NCLT Borrower Outstanding Amount as on 31.03.022 Capacity (in MW) COD Status Name (Rs.crore) 3 units Commissioned 3,300 3,600 Power Finance Corporation KSK Mahanadi Power (1,800 MW) 2 units Commissioned Lanco Ama
Slide 19: Resolution Update: Stage III Assets (4/5)
Resolution Update Stage III Assets (4/5) Major Q1 projects FY 21 being resolved through NCLT Borrower Outstanding Amount as on 31.03.022 Capacity (in MW) COD Status Name (Rs.crore) Power Finance Corporation Shri Maheshwar Hydel Project 1,611 400 Not Commissioned India Power Corporation 2 units Commi
Slide 20: Resolution Update: Stage III Assets (5/5)
Resolution Update Stage III Assets (5/5) Major Q1 projects FY 21 being resolved Outside NCLT Borrower Outstanding Amount as on 31.03.022 Capacity (in MW) COD Status Name (Rs.crore) Power Finance Corporation Sinnar Thermal Power Ltd. 3,001 1,350 Commissioned TRN Energy Pvt. Ltd. 1,139 600 Commissione
Slide 21: Stand Alone Performance: 4. Operational Performance
Stand Alone Performance Power Finance Corporation 4. Operational Performance 21
Slide 22: Loan Asset - Composition
Loan Asset - Composition (Rs.’crore) As on 31.03.2022 As on 31.03.2021 Loan Asset Mix Gross Loan Assets 3,73,135 3,70,771 Scheme Wise Others 1% Generation 2,12,212 2,27,052 T&D 42% - Conventional Generation 1,75,434 1,89,578 - Renewable Energy 36,777 37,474 Power Finance Corporation • Renewable Ener
Slide 23: Disbursement Composition
Disbursement Composition (Rs.’crore) Q4 FY 22 Q4 FY 21 FY 22 FY 21 Amt % Amt % Amt % Amt % Disbursements 16,651 100% 28,357 100% 51,242 100% 88,301 100% Scheme Wise Generation 5,679 34% 8,193 29% 18,196 36% 30,722 35% Power Finance Corporation Transmission 2,126 13% 1,351 5% 4,636 9% 5,495 6% Distri
Slide 24: Borrowing Snapshot
Borrowing Snapshot Leveraged Low Interest Rate Regime through Long Term Raising Foreign Currency 54 EC Bonds Borrowing 4% Raised Rs.35,944 cr. in FY 22 20% Power Finance Corporation Marginal @5.27% Weighted Average Raising Marginal Cost FY 22 RTL From Banks/FI's For 6.34 yrs Weighted Average 39% Dom
Slide 25: Liability Mix as on 31.03.2022
Liability Mix as on 31.03.2022 Commercial Papers Nil Foreign Currency Subordinated Bonds Borrowing Rs.9,212 cr. (3%) Rs.56,288 cr. (18%) 92% exchange risk Power Finance Corporation hedged for FCL upto 5 years residual RTL from Banks/FI’s Rs.3,20,128 cr. 54EC Bonds Rs. 65,762 cr. (21%) Rs. 3,999cr. (
Slide 26: Stand Alone Performance: 5. Shareholder Outlook
Stand Alone Performance Power Finance Corporation 5. Shareholder Outlook 26
Slide 27: Shareholder Outlook as on 31.03.2022
Shareholder Outlook as on 31.03.2022 President of India FIIs & FPIs 55.99% 16.76% Equity Ratios Indicate Mutual Funds 12.24% Potential For Upside EPS Book Value (Annualized) Per Share Power Finance Corporation Rs.37.96 Rs.224.80 Indian FIs & Banks Price to Price to Book 0.55% Employees Earning Ratio
Slide 28: C. Consolidated Performance
C. Consolidated Power Finance Corporation Performance 28
Slide 29: Consolidated Performance: 1. Highlights
Consolidated Performance Power Finance Corporation 1. Highlights 29
Slide 30: Consolidated Snapshot
Consolidated Snapshot Profit After Tax Loan Assets Rs.18,768 cr. in FY’22 vs. Rs.15,716 Rs.7,58,496 cr. in FY’22 vs. Rs.7,45,189 cr. in FY’21 cr. in FY’21 Power Finance Corporation Total Income Rs.76,345 cr. in FY’22 vs. Rs.71,701 cr. in FY’21 Net NPA Net Interest Income 1.60% in FY’22 vs 1.91% in F
Slide 31: Key Consolidated Financials
Key Consolidated Financials (Rs.’crore) Particulars Q4FYFY2122 Q1 Q4 FY 21 FY 22 FY 21 Interest Income 18,261 17,728 74,887 70,845 Interest Expense 10,926 11,244 44,709 44,684 Power Finance Corporation Net Interest Income 7,335 6,484 30,178 26,162 Profit After Tax 4,296 3,906 18,768 15,716 Total Com
Slide 32: Thanks
Thanks For questions on PFC’s financial performance, you can reach PFC Power Finance Corporation Investor Relations Team at investorrelations@pfcindia,com Join us: @pfclindia www.pfcindia.com 32
Slide 33: Contact Information for Investors
Investment in 54ECinvestorcell@pfcindia.com 54 EC Capital Contact Gain Bonds Power Finance Corporation Information for Investors For all bondsinvestorcell@pfcindia.com Bond Queries Join us: @pfclindia www.pfcindia.com 33
Slide 34: Disclaimer
Disclaimer ▷ The presentation is prepared based on consolidated/stand-alone audited financial statements of PFC for financial year ended 31.03.2022. ▷ There is a possibility of Ind AS financial results and the additional disclosures to be updated, modified or amended because of adjustments which may