Power Finance Corporation Limited · NSE:PFC
Power Finance — Q1 FY2022 Earnings Presentation
28 slides from Power Finance's earnings presentation, Jun 30, 2021
Slide 1: Performance Highlights Quarter ended 30th June 2021
Funding for a righter Tomorrow Power Finance Corporation Ltd. A Navratna PSU Performance Highlights Quarter ended 30th June 2021
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 Largest Govt. owned NBFC Group financing the Indian power sector #365 in the world in #33 in Fortune 500 In
Slide 5: PFC Group Structure
PFC Group Structure Ultra Mega 100% Power Projects Associates Power PFC Consulting 100% Power Finance Corporation Finance Corporation Subsidiaries 52.63% REC Ltd. 22.18% 24.97% EESL 47.15% Joint Venture 1. EESL – Energy Efficiency Service Ltd. 2. 47.15% stake in EESL is consolidated stake of PFC (24
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: Strong Financial Performance in Q1'22
Strong Financial Performance in Q1’22 34% increase in Renewable Energy PAT from Q1’21 book1 grows at 35% CAGR in 5 yr. Rs.2,274 cr. in Q1’22 vs. RE loan book at Rs.1,700 cr. In Q1’21 Rs.21,689 cr. as on 30.06.2021 vs. Rs.4,842 cr. as on 31.03.2017 Power Finance Corporation More than 20% SCOPE award-
Slide 9: Stand Alone Performance: 2. Earning Update
Stand Alone Performance Power Finance Corporation 2. Earning Update 9
Slide 10: Revenue & Growth
Revenue & Growth (Rs.’crore) Particulars Q1 Q1 FY 21FY 22 Q1 FY 21 FY 21 Interest Income 9,264 8,749 36,146 Interest Expense 5,739 5,676 23,194 Power Finance Corporation Net Interest Income 3,525 3,073 12,951 Profit After Tax 2,274 1,700 8,444 Total Comprehensive Income 2,390 1,646 8,534 (Y/E- March
Slide 11: Key Ratios
Key Ratios (Ratios in %)) Particulars Q1 FY 22 Q1 FY 21 FY 21 Yield on Earning Assets 10.39 10.68 10.58 Cost of Funds 7.43 7.68 7.48 Power Finance Corporation Interest Spread on Earning Assets 2.96 3.00 3.10 Net Interest Margin on Earning Assets 3.70 3.48 3.54 CRAR 21.16 17.32 18.83 Net Worth (Share
Slide 12: Stand Alone Performance: 3. Asset Quality
Stand Alone Performance Power Finance Corporation 3. Asset Quality 12
Slide 13: Asset Quality Snapshot
Asset Quality Snapshot Rs.3,69,983 cr. loan book as on 30.06.2021 Highest Provisioning resulting in Lowest Net NPA in last 3 years 63% 65% Adequate 51% 53% GOVERNMENT SECTOR 83% Provision Levels leading to a Power Finance Corporation PRIVATE Resilient 17% SECTOR 4.55% 3.80% Balance Sheet 2.09% 2.00%
Slide 14: Provisioning Snapshot - 30.06.2021
Provisioning Snapshot -30.06.2021 (Rs.’crore) STAGE III STAGE I & II STAGE III as % of Gross Loan TOTAL Assets OUTSTANDING LOAN ASSETS - Government Sector 3,08,834 - - 3,08,834 Power Finance Corporation Provisioning Status - Private Sector 39,996 21,154 - 61,149 as on 30.06.2021 TOTAL OUTSTANDING 3,
Slide 15: Resolution Status
Resolution Status Stage III Assets Rs.15,820 cr. in NCLT 16 projects Resolution status Under NCLT 69% provision Power Finance Corporation of Rs.21,154 cr. of loan assets in Rs.5,334 cr. resolution being Stage III pursued outside NCLT 10 projects Outside NCLT 54% provision 15
Slide 16: Stand Alone Performance: 4. Operational Performance
Stand Alone Performance Power Finance Corporation 4. Operational Performance 16
Slide 17: Loan Asset - Composition
Loan Asset - Composition (Rs.’crore) Continued focus on T&D and Renewable Business As on 30.06.2021 As on 30.06.2020 Gross Loan Assets 3,69,983 3,53,595 Others Scheme Wise T&D 1% 38% Generation 2,26,166 2,43,607 - Conventional Generation 1,87,895 2,06,092 - Renewable Energy 38,271 37,515 Power Finan
Slide 18: Disbursement Composition
Disbursement Composition (Rs.’crore) Q1 FY 22 Q1 FY 21 FY 21 Amt % Amt % Amt % Disbursements 11,332 100% 17,271 100% 88,301 100% Scheme Wise Generation 6,356 56% 10,909 63% 30,722 35% Power Finance Corporation Transmission 507 5% 1,657 10% 5,495 6% Distribution 4,465 39% 4,634 27% 51,903 59% Others
Slide 19: Liability Mix as on 30.06.2021
Liability Mix as on 30.06.2021 Commercial Papers Rs.3,110 cr. (1%) Foreign Currency Subordinated Bonds Borrowing Rs.9,212 cr. (3%) Rs.50,404 cr. (16%) 86% exchange risk Power Finance Corporation hedged for FCL with 5 years residual RTL from Banks/FI’s Rs.3,23,131 cr. 54EC Bonds Rs. 63,280 cr. (20%)
Slide 20: Stand Alone Performance: 5. Shareholder Outlook
Stand Alone Performance Power Finance Corporation 5. Shareholder Outlook 20
Slide 21: Shareholder Outlook as on 30.06.2021
Shareholder Outlook as on 30.06.2021 President of India FIIs & FPIs 55.99% 17.35% Equity Ratios Indicate Mutual Funds 13.19% Potential For Upside EPS Book Value (Annualized) Per Share Power Finance Corporation Rs.34.45 Rs.207.34 Indian Fis & Banks Price to Price to Book 6.23% Employees Earning Ratio
Slide 22: C. Consolidated Performance
C. Consolidated Power Finance Corporation Performance 22
Slide 23: Consolidated Performance: 1. Highlights
Consolidated Performance Power Finance Corporation 1. Highlights 23
Slide 24: Consolidated Snapshot
Consolidated Snapshot Profit After Tax Interest Income Rs.4,555 cr. in Q1’22 vs. Rs.3,557 Rs.18,690 cr. in Q1’22 vs Rs.16,856 cr. cr. In Q1’21 in Q1’21 Power Finance Corporation Loan Assets Rs.7,49,373 cr. in Q1’22 vs. Rs.6,84,383 cr. in Q1’21 Net NPA Gross NPA 1.80% in Q1’22 vs 3.15% in Q1’21 5.25%
Slide 25: Key Consolidated Financials
Key Consolidated Financials (Rs.’crore) Particulars Q1 FY 22 Q1 FY 21 FY 21 Interest Income 18,690 16,856 70,845 Interest Expense 11,313 10,869 44,684 Power Finance Corporation Net Interest Income 7,377 5,987 26,162 Profit After Tax 4,555 3,557 15,716 Total Comprehensive Income 4,731 3,665 16,264 (Y
Slide 26: 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 26
Slide 27: 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 27
Slide 28: Disclaimer
Disclaimer ▷ The presentation is prepared based on consolidated/stand-alone audited financial statements of PFC for financial year ended 30.06.2021. ▷ There is a possibility of Ind AS financial results and the additional disclosures to be updated, modified or amended because of adjustments which may