Power Finance Corporation Limited · NSE:PFC
Power Finance — Q2 FY2022 Earnings Presentation
29 slides from Power Finance's earnings presentation, Sep 30, 2021
Slide 1: Performance Highlights Quarter ended 30th September 2021
Funding for a righter Tomorrow Power Finance Corporation Ltd. A Maharatna PSU Performance Highlights Quarter ended 30th September 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 Highest “Maharatana” Status for a CPSE conferred by Govt. on 12th October 2021 #365 in the world in #33 in
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: Consistent Financial Performance in Q2'22
Consistent Financial Performance in Q2’22 32% increase in PFC raised Eur 300 mn PAT from Q2’21 through its maiden Euro Green Bond issue Rs.2,759 cr. in Q2’22 vs. Raised Euro 300mn at a Rs.2,085 cr. In Q2’21 coupon of 1.841% First ever Euro Bond issue by an Indian NBFC Power Finance Corporation Stabl
Slide 9: PFC is now a Maharatna CPSE
PFC is now a Maharatna CPSE PFC is the 11th CPSE in the Maharatna List Maharatna Status to give greater operational & financial autonomy Power Finance Corporation Accorded the highest “Maharatna” Status for a Enhanced powers for equity Investment subject to Govt. of India CPSE by Govt. on 12th presc
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 Q2FYFY2122 Q1 Q2 FY 21 H1 22 H1 21 Interest Income 9,202 9,194 18,466 17,943 Interest Expense 5,672 5,829 11,412 11,506 Power Finance Corporation Net Interest Income 3,530 3,365 7,054 6,437 Profit After Tax 2,759 2,085 5,032 3,785 Total Comprehensive Income 2
Slide 12: Key Ratios
Key Ratios (Ratios in %)) Particulars Q2 FY 22 Q2 FY 21 H1 22 H1 21 Yield on Earning Assets 10.28 10.70 10.34 10.67 Cost of Funds 7.39 7.61 7.41 7.64 Power Finance Corporation Interest Spread on Earning Assets 2.89 3.09 2.93 3.03 Net Interest Margin on Earning Assets 3.63 3.69 3.67 3.58 CRAR 21.76 1
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.3,71,732 cr. loan book as on 30.09.2021 Lowest Net NPA in last 3 years 66% 63% Adequate 51% 53% GOVERNMENT SECTOR 84% Provision Levels leading to a Power Finance Corporation PRIVATE Resilient 16% SECTOR 4.55% 3.80% Balance Sheet 2.09% 1.92% FY 19 FY 20 FY 21 H1 22 PERFORMIN
Slide 15: Provisioning Snapshot - 30.09.2021
Provisioning Snapshot -30.09.2021 (Rs.’crore) STAGE III STAGE I & II STAGE III as % of Gross Loan TOTAL Assets OUTSTANDING LOAN ASSETS - Government Sector 3,10,715 - - 3,10,715 Power Finance Corporation Provisioning Status - Private Sector 39,954 21,063 - 61,017 as on 30.09.2021 TOTAL OUTSTANDING 3,
Slide 16: Resolution Status
Resolution Status Stage III Assets Rs.16,688 cr. in NCLT 16 projects Resolution status Under NCLT 68% provision Power Finance Corporation of Rs.21,063 cr. of loan assets in Rs.4,375 cr. resolution being Stage III pursued outside NCLT 9 projects Outside NCLT 58% provision 16
Slide 17: Stand Alone Performance: 4. Operational Performance
Stand Alone Performance Power Finance Corporation 4. Operational Performance 17
Slide 18: Loan Asset - Composition
Loan Asset - Composition (Rs.’crore) Continued focus on T&D and Renewable Business As on 30.09.2021 As on 30.09.2020 Gross Loan Assets 3,71,732 3,71,158 Others Scheme Wise T&D 1% 40% Generation 2,19,818 2,47,099 - Conventional Generation 1,82,578 2,07,816 - Renewable Energy 37,240 39,283 Power Finan
Slide 19: Disbursement Composition
Disbursement Composition (Rs.’crore) Q2 FY 22 Q2 FY 21 H1 22 H1 21 Amt % Amt % Amt % Amt % Disbursements 14,161 100% 28,825 100% 25,492 100% 46,096 100% Scheme Wise Generation 2,617 18% 9,855 34% 8,973 35% 20,764 45% Power Finance Corporation Transmission 459 3% 1,382 5% 966 4% 3,040 7% Distribution
Slide 20: Liability Mix as on 30.09.2021
Liability Mix as on 30.09.2021 Commercial Papers Nil Foreign Currency Subordinated Bonds Borrowing Rs.9,212 cr. (3%) Rs.51,767 cr. (16%) 85% exchange risk Power Finance Corporation hedged for FCL with 5 years residual RTL from Banks/FI’s Rs.3,20,094 cr. 54EC Bonds Rs. 64,366 cr. (20%) Rs. 3,182 cr.
Slide 21: Stand Alone Performance: 5. Shareholder Outlook
Stand Alone Performance Power Finance Corporation 5. Shareholder Outlook 21
Slide 22: Shareholder Outlook as on 30.09.2021
Shareholder Outlook as on 30.09.2021 President of India FIIs & FPIs 55.99% 17.88% Equity Ratios Indicate Mutual Funds 13.17% Potential For Upside EPS Book Value (Annualized) Per Share Power Finance Corporation Rs.38.12 Rs.214.55 Indian FIs & Banks Price to Price to Book 0.54% Employees Earning Ratio
Slide 23: C. Consolidated Performance
C. Consolidated Power Finance Corporation Performance 23
Slide 24: Consolidated Performance: 1. Highlights
Consolidated Performance Power Finance Corporation 1. Highlights 24
Slide 25: Consolidated Snapshot
Consolidated Snapshot Net Worth Profit After Tax Rs.90,311 cr. in H1’22 vs. Rs.75,596 Rs.9,578 cr. in H1’22 vs Rs.7,847 cr. in cr. In H1’21 H1’21 Power Finance Corporation Loan Assets Rs.7,59,009 cr. in H1’22 vs. Rs.7,20,110 cr. in H1’21 Net NPA Gross NPA 1.72% in H1’22 vs 2.60% in H1’21 5.17% in H1
Slide 26: Key Consolidated Financials
Key Consolidated Financials (Rs.’crore) Particulars Q2FYFY2122 Q1 Q2 FY 21 H1 22 H1 21 Interest Income 18,928 18,035 37,617 34,891 Interest Expense 11,235 11,240 22,548 22,109 Power Finance Corporation Net Interest Income 7,693 6,795 15,069 12,782 Profit After Tax 5,023 4,290 9,578 7,847 Total Compr
Slide 27: 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 27
Slide 28: 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 28
Slide 29: Disclaimer
Disclaimer ▷ The presentation is prepared based on consolidated/stand-alone un-audited financial statements of PFC for financial year ended 30.09.2021. ▷ There is a possibility of Ind AS financial results and the additional disclosures to be updated, modified or amended because of adjustments which