Power Finance Corporation Limited · NSE:PFC
Power Finance — Q2 FY2021 Earnings Presentation
29 slides from Power Finance's earnings presentation, Sep 30, 2020
Slide 1: Performance Highlights
Power Finance Corporation Ltd. A Navratna PSU Performance Highlights Quarter/Half Year ended 30th September 2020 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 #34 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: H1FY21 in Perspective
H1FY21 in Perspective 49% increase in 51 bps increase in 190 bps reduction in 60% increase in 14% increase in loan PAT from H1’20 NIM from H1’20 NPA levels from H1’20 disbursements from assets from H1’20 H1’20 Rs.3,785 cr. in H1’21 vs. 3.58% in H1’21 vs. 7.15% in H1’21 vs. Rs.46,096 cr. in H1’21 vs.
Slide 9: 2. Earning Update
2. Earning Update
Slide 10: Revenue & Growth
Revenue & Growth (Rs.’crore) Q2 FY 21 Q1 FY 21 Q2 FY 20 H1 FY 21 H1 FY 20 Particulars Interest Income 9,194 8,749 7,989 17,943 15,521 Interest Expense 5,829 5,676 5,439 11,506 10,806 Net Interest Income 3,365 3,073 2,550 6,437 4,716 Profit After Tax 1,700 1,157 2,085 3,785 2,540 Total Comprehensive
Slide 11: Key Ratios
Key Ratios (Ratios in %) Q2 FY 21 Q1 FY 21 Q2 FY 20 H1 FY 21 H1 FY 20 Particulars Yield on Earning Assets 10.70 10.68 10.61 10.67 10.59 Cost of Funds 7.61 7.68 7.82 7.64 7.86 Interest Spread on Earning 3.09 3.00 2.79 3.03 2.73 Assets Net Interest Margin on Earning 3.48 3.13 Assets 3.69 3.58 3.07 CRA
Slide 12: 3. Asset Quality
3. Asset Quality
Slide 13: Provisioning Snapshot – 30.09.2020
Provisioning Snapshot – 30.09.2020 (Rs.’crore) Stage III (NPA) Stage I & II Stage III as % of Gross Total Loan Assets Outstanding Loan Assets - Government Sector 3,10,017 - - 3,10,017 Provisioning Status - Private Sector 34,614 26,527 - 61,141 as on 30.09.2020 Total Outstanding 3,44,632 26,527 7.15%
Slide 14: Asset Quality Snapshot
Asset Quality Snapshot Rs.3,71,158 cr. loan book as on 30.09.2020 Net NPAs continue their downward trend 7.39% GOVERNMENT SECTOR PRIVATE SECTOR STANDARD ASSET 4.55% 3.80% 3.12% FY 17-18 FY 18-19 FY 19-20 H1 20-21 84% 16% 93% FY 17-18 Net NPA ratio based on RBI norms 14
Slide 15: Resolution Status – Stage III Assets (1/3)
Resolution Status – Stage III Assets (1/3) Resolution status of Rs.26,527 cr. of loan assets in Stage III NCLT Resolution Outside NCLT Resolution Rs.16,185 cr. in NCLT Rs.10,342 cr. resolution being pursued outside NCLT 17 projects 08 projects 64% provision 44% provision 15
Slide 16: Resolution Status – Stage III Assets (2/3)
Resolution Status – Stage III Assets (2/3) Status update of major projects under NCLT resolution Ind Barath Energy Utkal Rs.1,368 cr. • 1 unit out of 2 units commissioned. 1 Application • Final resolution plan submitted to NCLT for admitted approval. South East UP Power Rs.2,263 cr. 2 Application ad
Slide 17: Resolution Status – Stage III Assets (3/3)
Resolution Status – Stage III Assets (3/3) Status update of major projects outside NCLT resolution RKM Powergen Pvt. Ltd Rs.5,180cr 1 • Commissioned • Resolution plan agreed by all lenders except one Bank. Sinnar Thermal Power Ltd Rs.3,001cr 2 • Commissioned • Tie up of PPA being pursued by borrower
Slide 18: 4. Operational Performance
4. Operational Performance
Slide 19: Loan Asset – Composition
Loan Asset – Composition Robust Loan Assets Growth of 14% from H1FY20 to H1FY21 (Rs.’crore) As on As on As on 30.09.2020 30.09.2019 31.03.2020 Others Gross Loan Assets 3,71,158 3,25,434 3,44,905 1% Scheme Wise T&D Generation 2,47,099 2,28,644 2,37,178 32% Conventional Generation 2,07,816 197,161 2
Slide 20: Disbursement Composition
Disbursement Composition (Rs.’crore) Q2 FY 21 Q2 FY 20 H1 FY21 H1 FY20 Amt % Amt % Amt % Amt % Disbursements 28,825 100% 18,366 100% 46,096 100% 28,833 100% Scheme Wise Generation 9,855 34% 8,712 47% 20,764 45% 15,195 53% Transmission 1,382 5% 1693 9% 3,040 7% 2,576 9% Distribution 17,526 61% 7,758
Slide 21: Liability Mix as on 30.09.2020
Liability Mix as on 30.09.2020 Commercial Papers Rs.3,020 cr. (1%) Foreign Currency Borrowing Subordinated Bonds Rs.9,212 cr. (3%) Rs.45,696 cr. (14%) 72% exchange RTL from Banks/FI’s Rs.3,24,054 cr. 54EC Bonds risk hedged for Rs. 66,070 cr. (20%) Outstanding Rs. 2,206 cr. (0.68%) Borrowings as FCL
Slide 22: 5. Shareholder Outlook
5. Shareholder Outlook
Slide 23: Shareholder Outlook as on 30.09.2020
Shareholder Outlook as on 30.09.2020 President of India FIIs & FPIs 55.99% 16.81% Equity Ratios Indicate Potential For Upside Mutual Funds 14.27% EPS Book Value (Annualized) Per Share Rs.28.67 Rs.187.03 As on 30.06.2020 Price to Price to Book Earning Ratio Value Ratio Indian Fis & Banks 3.01 0.46 Em
Slide 24: C. Consolidated Performance
C. Consolidated Performance 24
Slide 25: 1. Highlights
1. Highlights
Slide 26: Consolidated Snapshot
Consolidated Snapshot TOTAL INCOME - Rs.35,104 cr. H1’21 PAT- Rs.7,847 cr. LOAN ASSET - Rs.7,20,110 cr. CRAR – 17.54% PFC Consolidated for H1’21 Gross NPA- 6.21% NET NPA - 2.60% 26
Slide 27: Key Consolidated Financials
Key Consolidated Financials (Rs.’crore) Q2 FY 21 Q1 FY 21 Q2 FY 20 H1 FY 21 H1 FY 20 Particulars Interest Income 18,035 16,856 15,397 34,891 29,905 Interest Expense 11,240 10,869 10,153 22,109 20,091 Net Interest Income 6,794 5,987 5,244 12,782 9,814 Profit After Tax 4,290 3,557 2,497 7,847 5,397 To
Slide 28: Thanks Any Questions?
Thanks Any Questions? You can reach PFC’s Investor Relations Team at investorrelations@pfcindia.com Join us: @pfclindia www.pfcindia.com 28
Slide 29: Disclaimer
Disclaimer ▷ The presentation is prepared based on consolidated/stand-alone un-audited financial statements of PFC for quarter & half year ended 30.09.2020. ▷ There is a possibility of Ind AS financial results and the additional disclosures to be updated, modified or amended because of adjustments w