Power Finance Corporation Limited · NSE:PFC
Power Finance — FY2010 Earnings Presentation
28 slides from Power Finance's earnings presentation, April 2010
Slide 1: Performance Highlights Quarter & Year Ended 31st March 2010
We Create Possibility of a Better Tomorrow…. April 2010 Power Finance Corporation Limited S M T W Th F Sa A Navratna PSU 1 2 3 4 5 6 7 8 9 10 Performance Highlights Quarter & Year Ended 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (Standalone, Provisional & Un-audited) 31st March 2010 25 26 27 28 29 30
Slide 2: PFC Overview, Focus & Strategy, Operational Performance
PFC Overview Focus & Strategy Operational Performance Shareholding Pattern 2 We Create Possibility of a Better Tomorrow….
Slide 3: PFC Overview
PFC Overview Declared a Public Financial Institution under Sec 4A of The Companies Act, 1956; Registered as NBFC with RBI Ministry of Central PFC occupies a niche position as a provider of finance exclusively Power Power Sector focused on the Indian power sector Utilities Rated Baa3 / BBB- / B
Slide 4: Key Milestones
Key Milestones 2010 1. Tilaiya UMPP transferred to Reliance Power 2. ENICL ITP transferred to Sterlite Technologies 3. PFC certified ISO 9001:2008 4. Conferred with “Dalal Street Investor Journal PSU Award 2010” for being a) Heavy weight Navratna PSU 2008 b) Fastest growing Navratna PSU •Limited Cum
Slide 5: Exclusive Focus on Financing the Power Sector
Exclusive Focus on Financing the Power Sector Rupee Term Loans Restructuring, Reform Core Business Foreign Currency Initiatives 99.6% of Outstanding Loans Loan Portfolio Financial Management Short Term Loans of Resources Risk Assessment, Project Restructuring Bill Discounting Scheme Solutions for Im
Slide 6: Business Strategy
Business Strategy Continue to grow in existing business Continue to encourage Facilitation Group and promote reforms in (Power Equipment, Coal the power sector & Gas) R-APDRP PFC Consortium Lending Renewable Energy & Equity Funding CDM Consulting Services PFC Consulting Ltd We Create Possibility of
Slide 7: Competent and Committed Workforce
Competent and Committed Workforce Academic background of Executives (193) 5% (as on 31.03.2010) Engineers plus 16% MBA/PGDBM Workforce:302 43% Executives:193 CA/ CFA/ CS/ ICWA plus MBA/PGDBM Non-Executives:109 8% Law MBA (FY 2009-10) Others 27% Disbursement per Employee Experience Profile of Executi
Slide 8: Performance at a Glance
Performance at a Glance Sanctions (Rs. in crores) 80,000 69,498 65,466 * 57,030 * 60,000 40,000 31,146 5 Yr 22,502 CAGR 20,000 29 % - FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Disbursement (Rs. in crores) 30,000 25,808 * 25,000 21,054 * 20,000 16,211 11,681 14,055 15,000 5 Yr 10,000 CAGR 22 % 5,000 -
Slide 9: Performance at a Glance
Performance at a Glance Loan Assets (Rs. in crores) 90,000 79,856 75,000 64,429 60,000 51,568 5 Yr 43,903 CAGR 45,000 35,603 22 % 30,000 15,000 - FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Networth (Rs. in crores) 15,000 12,618 12,000 10,790 8,043 8,688 5 Yr 9,000 6,466 CAGR 6,000 16 % 3,000 - FY 2006
Slide 10: Performance at a Glance
Performance at a Glance Total income (Rs. in crores) 10,000 8,074 8,000 6,584 5 Yr 6,000 5,040 CAGR 3,928 4,000 3,128 22 % 2,000 - FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 PAT (Rs. in crores) 2,800 2,355 2,100 1,970 5 Yr 1,400 1,207 CAGR 971 986 19 % 700 - FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 10 W
Slide 11: Performance at a Glance
Performance at a Glance Dividend (Rs. in crores) 500 459 402 344 ** 400 362 300 260 200 100 - Healthy FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 & Consistent Dividend Dividend Payout * (%) Track 50% record 35% 40% 40% 35% 30% ** 30% 23% 20% 10% 0% FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 * Dividend payo
Slide 12: Highlights – FY 10 vs. FY 09
Highlights – FY 10 vs. FY 09 Net Profit increased by 20% from Rs. 1,970 crore to Rs. 2,355 crore Comparable PAT increased by 32% from Rs. 1,605 crore to Rs. 2,113 crore Operating Profit to Avg. Assets increased by 18 bps from 3.62% to 3.80% Total Income increased by 23% from Rs. 6,584 crore to Rs. 8
Slide 13: Highlights – FY 10 vs. FY 09 (contd.)
Highlights – FY 10 vs. FY 09 (contd.) Disbursements increased by 23% from Rs. 21,054 crore to Rs. 25,808 crore Sanctions increased by 15% from Rs. 57,030 crore to Rs. 65,466 crore Loan Assets increased by 24% from Rs. 64,429 crore to Rs. 79,856 crore Networth increased by 17% from Rs. 10,790 crore t
Slide 14: Comparable Profit
Comparable Profit (Y/E – March, Rs. Crores) Q4 FY Q4 FY Comparable Profit % change FY 2010 FY 2009 % change 2010 2009 Reported PAT 599 1,005 -40% 2,355 1,970 20% Adjustments (post-tax): DTL (+) / Deferred Tax Liability Write- (593) (483) back (-) on Special Reserve Prior period Income Tax incl. inte
Slide 15: Profit & Loss Account
Profit & Loss Account (Y/E – March, Rs. Crores) Income Statement# Q4 FY 2010 Q4 FY 2009 FY 2010 FY 2009 Interest Income 2,083 1,767 7,860 6,396 Interest Expense (1,326) (1,131) (4,937) (4,145) Net Interest Income 757 636 2,923 2,251 Other Income* (11) 24 88 67 Operating Costs (40) (27) (107) (91) Pr
Slide 16: Return on Average Assets
Return on Average Assets Dupont Analysis Q4 FY 2010 Q4 FY 2009 FY 2009-10 FY 2008-09 Net Interest Income 0.94% 0.96% 3.82% 3.66% Other Income -0.01% 0.04% 0.11% 0.11% Operating Expenses -0.05% -0.04% -0.14% -0.15% Operating Profit 0.87% 0.95% 3.80% 3.62% Provisions 0.00% 0.00% 0.00% -0.01% Profit Be
Slide 17: Balance Sheet
Balance Sheet (Y/E – March, Rs. Crores) Liabilities FY 2010 FY 2009 Shareholders‟ Funds 13,460 11,508 Reserve for bad & doubtful debts 842 718 (included in Shareholder’s Funds) Borrowings 67,108 52,160 Deferred Tax Liability 48 55 Interest Subsidy Fund 664 909 R-APDRP Fund from GoI - - Current Liabi
Slide 18: Key Indicators
Key Indicators Key Indicators Q4 FY 2010 Q4 FY 2009 FY 2010 FY 2009 Sanctions (Rs. Crores) 28,256 14,255 65,466 57,030 Net outstanding sanctions (Rs. Crores) 141,813 120,860 141,813 120,860 Disbursements (Rs. Crores) 10,453 6,954 25,808 21,054 Loan Assets (Rs. Crores) 79,856 64,429 79,856 64,429 Yie
Slide 19: Sanctions – Composition
Sanctions – Composition (Y/E – March, Rs. Crores) Sanctions Q4 FY 10 Q4 FY 09 FY 2009-10 FY 2008-09 Discipline-wise Amount % Amount % Amount % Amount % Generation 17,075 60% 9,831 69% 43,629 67% 44,609 78% Transmission 5,938 21% 1,616 11% 11,620 18% 5,866 10% Distribution 19 0.1% 15 0.1% 295 0.5% 1,
Slide 20: Disbursements – Composition
Disbursements – Composition (Y/E – March, Rs. Crores) Disbursements Q4 FY 2010 Q4 FY 2009 FY 2009-10 FY 2008-09 Discipline-wise Amount % Amount % Amount % Amount % Generation 7,952 76% 5,495 79% 19,682 76% 15,942 76% Transmission 378 4% 348 5% 1,056 4% 1,296 6% Distribution 262 3% 187 3% 630 2% 610
Slide 21: Loan Assets – Composition
Loan Assets – Composition (Y/E – March, Rs. Crores) Loan Assets* FY 2010 FY 2009 Discipline-wise Amount % Amount % Generation 67,013 84% 52,345 81% Transmission 6,284 8% 6,494 10% Distribution 3,402 4% 3,410 5% Others** 3,163 4% 2,172 4% Total 79,861 100% 64,421 100% Borrower-wise State Sector 54,14
Slide 22: Loan Quality
Loan Quality (Y/E – March, Rs. Crores) Particulars FY 2010 FY 2009 Gross NPAs 13 13 Less: Provisions & write-offs (7) (7) Net NPAs 6 6 As a % of Loan Assets: Gross NPAs 0.02% 0.02% Net NPAs 0.01% 0.01% 22 We Create Possibility of a Better Tomorrow….
Slide 23: Borrowing Profile
Borrowing Profile (Y/E – March, Rs. Crores) FY 2009-10 FY 2008-09 Borrowings Amount % Amount % Bonds 46,622 69% 36,882 71% Domestic 45,801 - 35,479 - Foreign 820 - 1,402 - Term Loans 18,161 27% 13,879 26% Short Term Loans 2,325 3% 1,400 3% Borrowings O/s 67,108 100% 52,160 100% Of which: Rupee Denom
Slide 24: Resource Profile
Resource Profile (Y/E – March, Rs. Crores) FY 2009-10 FY 2008-09 Resources Amount % Amount % Shareholders‟ Funds 13,460 17% 11,508 18% Reserve for bad & doubtful debts 842 - 718 - (included in Shareholder’s Funds) Deferred Tax Liability 48 0.1% 55 0.1% Interest Subsidy Fund 664 1% 909 1% Bonds (Dome
Slide 25: Major Projects Sanctioned in FY 2010
Major Projects Sanctioned in FY 2010 PROPOSAL DISCRIPTION Sanctions (Rs. in crores) 2X800 SUPER CRITICAL YERMARUS TPS OF RAICHUR POWER CORPORATION 7,046 LTD. IN KARNATAKA 1371 MW GAS BASED CCPP OF PRAGATI POWER CORPORATION LTD. AT 3,637 BAWANA IN DELHI 2X500 MW EXTENSION UNIT AT SAGARDIGHI TPS OF WE
Slide 26: Key Performance Targets for FY 2010-11
Key Performance Targets for FY 2010-11 PARAMETERS Amount (Rs. in crores) Sanctions 69,000 Other than R-APDRP 60,000 R-APDRP 9,000 Disbursements 29,500 Other than R-APDRP 27,000 R-APDRP 2,500 Resource mobilisation 27,700 26
Slide 27: Shareholding Pattern
Shareholding Pattern S. Top 10 Shareholders Holding Holding (%) Category No. (as on 31.03.2010) (%) Category As on As on 1 President of India 89.78% POI 31.03.2010 31.03.2009 HDFC Standard Life Insurance 2 0.63% LTD President of India 89.78% 89.78% Company Limited Life Insurance Corporation Of India
Slide 28: Thank You!
Thank You! 28 We Create Possibility of a Better Tomorrow….