Power Finance Corporation Limited · NSE:PFC
Power Finance — Q1 FY2020 Earnings Presentation
29 slides from Power Finance's earnings presentation, Jun 30, 2019
Slide 1: Power Finance Corporation Ltd. Performance Highlights
Power Finance Corporation Ltd. Performance Highlights A Navratna PSU Quarter ended 30th June 2019 Funding for a righter Tomorrow
Slide 2: Table of Contents
Table of Contents A Stand Alone Performance B Consolidated Performance 01 Highlights 01 Consolidated Snapshot 02 Earning Update 03 Asset Quality 04 Operational Performance 05 Shareholder Outlook
Slide 3: A. Stand Alone Performance
3 A. Stand Alone Performance
Slide 4: Highlights
4 1 Highlights
Slide 5: Stable Performance in Q1’20
5 Stable Performance in Q1’20 Total Comprehensive Income at Rs.1,408 cr. - 14% increase from Resolution reached in GMR Q1’19 Chhattisgarh loan of Rs.928 cr. No additional provisioning required Cost of Funds at 7.90% 18 bps reduction from Q1’19 Comfortable CRAR at 17.84% Steady yield at 10.61% in Q1’
Slide 6: Performance Snapshot
6 Performance Snapshot Q1’20 VS Q1’19 Performance Indicators (in Rs’ cr.) Profit Q1’20 - Rs. 1,383 cr.* TCI^ Q1’20 - Rs. 1,408 cr. Gross Loan Assets 3,16,886 Q1’19 - Rs.1,384 cr. Q1’19 - Rs.1,234 cr. Stage III Assets Govt. Nil Interest Income Q1’20 - Rs. 7,545 cr. Yield Q1’20 - 10.61% Stage III Asse
Slide 7: Earning Update
7 2 Earning Update
Slide 8: Revenue & Growth
8 Revenue & Growth (Rs.’crore) Q1 FY 20 Q1 FY 19 FY 19 Interest Income 7,545 6,631 28,447 Interest Expense 5,350 4,624 19,146 Net Interest Income 2,195 2,007 9,301 Profit After Tax 1,383 1,384 6,953 Cumulative Provisions 16,588 17,247 16,368 (Stage I+II+III) Reserve for Bad & Doubtful 3,826 3,450 3,
Slide 9: Key Ratios
9 Key Ratios (Ratios in %) Q1 FY 20 Q1 FY 19 FY 19 Yield on Earning Assets 10.61 10.57 10.62 Cost of Funds 7.90 8.08 7.95 Interest Spread on Earning Assets 2.71 2.49 2.67 Net Interest Margin on Earning 3.06 3.26 3.37 Assets Net worth Rs.44,709 cr. Rs.37,697 cr. Rs.43,288 cr. (Share Capital + All Res
Slide 10: Asset Quality
10 3 Asset Quality
Slide 11: Asset Quality Snapshot
11 Asset Quality Snapshot Loan Book of Rs.3,16,886 cr. as on 30.06.2019 Rs.2,60,402 cr. Govt. Loan Rs.56,484 cr. of Pvt. loan Assets Assets Private Government 18% 82% Rs. 26,044 cr. Pvt. loan All Govt. loan assets are assets regular in servicing regular in servicing Rs.30,440 cr. in stress 90% of Lo
Slide 12: Provisioning Snapshot
12 Provisioning Snapshot Provisioning Status as on 30.06.2019 (Rs.’crore) Stage III (NPA) as % Stage I & II Stage III Total of Gross Loan Assets Outstanding Loan Assets - Government Sector 2,60,402 - Nil 2,60,402 - Private Sector 26,044 30,440 9.61% 56,484 Total Outstanding Amount 2,86,446 30,440 9.
Slide 13: Resolution Status – Stage III Assets (1/2)
13 Resolution Status – Stage III Assets (1/2) Resolution status of Rs.30,440 cr. of loan assets in Stage 3 NCLT Resolution 7th June RBI Circular Rs.14,438 cr. in NCLT ICA signed/likely Not covered under to be signed Circular Rs.12,165 cr. Rs.3,837 cr. 13 projects 61% provision 5 projects 12 projects
Slide 14: Resolution Status – Stage III Assets (2/2)
14 Resolution Status – Stage III Assets (2/2) 13 projects of Rs.14,438 cr. are in NCLT Application filed & admitted 64% 6 Projects ` 3,046 cr. Provision Application filed but Not admitted yet 55% 5 Projects ` 9,757 cr. Provision Liquidation order passed in NCLT 93% 2 Projects ` 1,635 cr. Provision
Slide 15: Operational Performance
15 4 Operational Performance
Slide 16: Loan Asset - Composition
16 Loan Asset - Composition Others 1% T&D 28% Increasing thrust towards T&D & As on 30.06.2019 renewable business Renewable Generation (Conventional) 6% 65% (Rs.’crore) As on 30.06.2019 As on 30.06.2018 As on 31.03.2019 Gross Loan Assets 3,16,886 2,85,280 3,14,667 Scheme Wise Generation 2,25,449 2,1
Slide 17: Disbursements - Composition
17 Disbursements - Composition (Rs.’crore) Q1 FY 20 Q1 FY 19 Amt. % Amt. % Disbursements 10,466 100% 12,981 100% Scheme Wise Generation 6,483 62% 4,918 38% Transmission 883 8% 377 3% Distribution 3,053 29% 7,385 57% Others 48 0.5% 302 2.3% Sector Wise Government Sector 7,091 68% 11,918 92% Private S
Slide 18: Well Managed Liability Profile
18 Well Managed Liability Profile Rs. 2,80,618 of outstanding borrowings as on 30.06.2019 16% 13% Issued PFC’s largest USD 1 bn bond 5% 3% Diversification of funding profile 1.13% 87% from domestic sources & 13% from foreign 7.90% currency sources borrowing cost 18 bps decrease in cost from Q1’19 62
Slide 19: Liability Mix as on 30.06.2019
19 Liability Mix as on 30.06.2019 Bonds Rs.1,74,859 cr. RTL from Banks/FI’s Rs. 45,004 cr. Diversified Foreign Currency Borrowing Liability Rs.2,80,618 Cr. Rs.35,085 cr. outstanding Mix Borrowings as Commercial Papers Rs.13,275 cr. on 30.06.2019 Subordinated Bonds Rs.9,212 cr. 54EC Bonds Rs. 987 cr.
Slide 20: PFC’s access to low cost funds
20 PFC’s access to low cost funds 54EC Salient Features Individuals,HUF,NRI,FIs,LLP,Partnership,Banks, Eligible Investors Mutual Funds, Insurance Co., PF funds Tenor 5 years from deemed allotment date 54EC Resource Coupon Rate 5.75% per annum. Mobilization Triples from Q1’19 Long Term Capital Gain o
Slide 21: ALM Perspective
21 ALM Perspective Comfortable Liquidity Outlook for FY 20 (Jul-March’20) (+) Gap 2% 57,010 55,725 (+) Gap 19% 41,054 Surplus liquidity in all buckets 34,595 (+) Gap 15% (+) Gap 50% (+) Gap 62% 24,402 Sufficient cash flows to cover maturing 20,264 21,133 liabilities 16,438 (+) Gap 216% 13,535 10,134
Slide 22: Shareholder Outlook
22 5 Shareholder Outlook
Slide 23: Shareholders Outlook
23 Shareholders Outlook Equity market valuation ratios indicate potential for upside GOI EPS Rs. 21 (Annualised) 59% FIIs & FPIs Book Value Per Share Rs. 169 18% Mutual Funds 11% Price to Earning Ratio 6.4 59% GOI Shareholding Indian FIs & Banks 7% 0.05% Employees Price to Book Value Ratio 0.79 4% 0
Slide 24: B. Consolidated Performance
24 B. Consolidated Performance
Slide 25: Consolidated Snapshot
25 1 Consolidated Snapshot
Slide 26: PFC at a Glance
26 PFC at a Glance Power Finance Corporation ASSOCIATES SUBSIDIARIES JOINT VENTURE 27.73% Ultra Mega Power Equity 24.64% PFC Consulting REC EESL Power Projects Capital Advisors 100% 100% 100% 52.63% 52.37% 1. EESL – Energy Efficiency Service Ltd. 2. 52.37% stake in EESL is consolidated stake of PFC
Slide 27: Performance Snapshot
27 Performance Snapshot NET WORTH - Rs.65,583 cr. LOAN ASSET - Rs.6,07,956 cr. PFC PAT - Rs.2,900 cr. NET NPA - 4.20% Consolidated NII – Rs.4,572 cr. CRAR – 17.20% Note: Net worth includes non-controlling interest. NII Interest Income
Slide 28: Thanks!
28 Thanks! You can reach PFC’s Investor Relations Team at investorrelations@pfcindia.com Any questions? Join us: @pfclindia www.pfcindia.com
Slide 29: Disclaimer
29 Disclaimer ▷ The presentation is prepared based on stand-alone unaudited financial statements of PFC for quarter ended 30.06.2019 ▷ There is a possibility of Ind AS financial results and the additional disclosures to be updated, modified or amended because of adjustments which may be required to