Power Finance Corporation Limited · NSE:PFC
Power Finance — Q4 FY2020 Earnings Presentation
33 slides from Power Finance's earnings presentation, Mar 31, 2020
Slide 1: Performance Highlights
Power Finance Corporation Ltd. Performance Highlights A Navratna PSU Quarter ended 31st March 2020 Funding for a righter Tomorrow
Slide 2: Table of Contents
Table of Contents A PFC at a Glance C Consolidated Performance 01 Earning Update B Stand Alone Performance 02 Operational Performance 01 Highlights 02 Earning Update 03 Asset Quality 04 Operational Performance 05 Shareholder Outlook
Slide 3: A. PFC at a Glance
3 A. PFC at a Glance
Slide 4: Leading Financer in Power Sector
4 Leading Financer in Power Sector Largest Govt. owned financing provider in the Indian power sector Group with 2 “Navratna” Companies – PFC & REC Majority Key financial Highest Long PFC group is Owned by partner for Term #34 in largest financial Government Government Domestic Fortune 500 company in
Slide 5: PFC Group Structure
5 PFC Group Structure Power Finance Corporation ASSOCIATES SUBSIDIARIES JOINT VENTURE 24.97% Ultra Mega 22.18% PFC Consulting EESL Power Projects REC 100% 100% 47.15% 52.63% 1. EESL – Energy Efficiency Service Ltd. 2. 47.15% stake in EESL is consolidated stake of PFC (24.97%) & REC (22.18%)
Slide 6: B. Stand Alone Performance
6 B. Stand Alone Performance
Slide 7: Highlights
7 1 Highlights
Slide 8: COVID-19 Response
8 COVID-19 Response OPERATIONAL BUSINESS RESPONSE BORROWER ROBUST COMMUNITIES RESPONSE SUPPORT LIQUIDITY Operations stayed highly Disbursed Rs.11,000 cr. Moratorium extended on Rs. 200 cr. contributed Raised around resilient in last week of March’20 approx. 70% due(s) & to to PM CARES Fund Rs.29,000
Slide 9: FY'20 in Perspective
9 FY’20 in Perspective TOTAL NET PAT- INCOME - INTEREST Rs. 5,655 cr. Rs.33,371 cr. INCOME - Rs.9,973 cr. CRAR - 16.96% RONW1 ROA2 TIER I - 12.45% 12.79% 1.60% TIER II - 4.51% 1. Return on Average Net Worth. 2. Return on Assets
Slide 10: Stable Financial Indicators for FY'20
10 Stable Financial Indicators for FY’20 Yield at 10.67% Cost at 7.71% Spread at 2.96% 10.66% 10.67% 2.96% 10.61% 10.60% 7.90% 2.91% 7.82% 7.75% 2.71% 2.78% 7.71% Q1'20 Q2'20 Q3'20 Q4'20 Q1'20 Q2'20 Q3'20 Q4'20 Q1'20 Q2'20 Q3'20 Q4'20 Maintaining a Stable Yield on Well managed cost of funds – Improv
Slide 11: Earning Update
11 2 Earning Update
Slide 12: Revenue & Growth
12 Revenue & Growth (Rs.’crore) Q4 FY 20 Q3 FY 20 Q4 FY 19 FY 20 FY 19 Interest Income 8,285 8,149 7,634 31,982 28,447 Interest Expense 5,616 5,530 4,963 22,009 19,152 Net Interest Income 2,669 2,619 2,671 9,973 9,296 Reported Profit After Tax 1,435 1,680 2,118 5,655 6,953 Impact of DTA re-measureme
Slide 13: Key Ratios
13 Key Ratios (Ratios in %) Q4 FY 20 Q3 FY 20 Q4 FY 19 FY 20 FY 19 Yield on Earning 10.67 10.66 10.66 10.63 10.62 Assets Cost of Funds 7.71 7.75 7.68 7.79 7.95 Interest Spread on 2.96 2.91 2.98 2.83 2.67 Earning Assets Net Interest Margin on 3.28 3.28 3.46 3.17 3.37 Earning Assets Net worth (Share C
Slide 14: Asset Quality
14 3 Asset Quality
Slide 15: Asset Quality Snapshot
15 Asset Quality Snapshot Rs.3,44,905 cr. loan book as on 31.03.2020 Lowest Net NPA in last 3 years 83% GOVERNMENT SECTOR 7.39% 17% 4.55% PRIVATE SECTOR 3.80% FY 17-18 FY 18-19 FY 19-20 92% STANDARD ASSET FY 17-18 Net NPA ratio based on RBI norms
Slide 16: Provisioning Snapshot
16 Provisioning Snapshot Provisioning Status as on 31.03.2020 (Rs.’crore) Stage III (NPA) as % Stage I & II Stage III Total of Gross Loan Assets Outstanding Loan Assets - Government Sector 2,87,514 - Nil 2,87,514 - Private Sector 29,519 27,872 8.08% 57,391 Total Outstanding Amount 3,17,033 27,872 8.
Slide 17: Resolution Update
17 Resolution Update 7 Projects of Rs.9,320 cr.in Resolution reached in R.S. India Loan of Rs.224 cr. Advance Stages of Resolution In loans of Rs. 6,578 cr. - Resolution Plan Approved 1. RKM Powergen - Rs.5,207 cr. 2. India Power Haldia - Rs.959 cr. 3. Essar Transmission - Rs.412 cr. In loans of Rs.
Slide 18: Operational Performance
18 4 Operational Performance
Slide 19: Loan Asset – Composition
19 Loan Asset – Composition – Others 1% T&D 30% As on Increasing thrust towards T&D & 31.03.2020 Generation (Conventional) renewable business 58% Renewable (including Large Hydro) 11% (Rs.’crore) As on 31.03.2020 As on 31.03.2019 Gross Loan Assets 3,44,905 3,14,667 Scheme Wise Generation 2,37,178 2,
Slide 20: Disbursements - Composition
20 Disbursements - Composition (Rs.’crore) Q4 FY 20 Q4 FY 19 FY 20 FY 19 Amt. % Amt. % Amt. % Amt. % Disbursements 20,752 100% 22,544 100% 67,997 100% 67,678 100% Scheme Wise Generation 8,880 43% 10,440 46% 36,012 53% 28,996 43% Transmission 2,911 14% 2,740 12% 7,096 10% 7,129 11% Distribution 8,710
Slide 21: Well Managed Liability Profile
21 Well Managed Liability Profile Rs. 3,03,452 of outstanding borrowings as on 31.03.2020 Improving ALM Maturity Profile Diversification of funding profile 84% from domestic sources & 16% from foreign currency sources Weighted Average Maturity of Assets & Liabilities 8 6.40 6.15 6.12 6 No outstandin
Slide 22: Liability Mix as on 31.03.2020
22 Liability Mix as on 31.03.2020 Domestic Bonds Rs.1,85,484 cr. (61%) RTL from Banks/FI’s Rs. 57,099 cr. (19%) Diversified Foreign Currency Borrowing Liability Rs.3,03,452 cr. Rs.47,701 cr. (16%) Outstanding Mix Borrowings as Commercial Papers Nil on 31.03.2020 Subordinated Bonds Rs.9,212 cr. (3%)
Slide 23: PFC's access to low cost funds
23 PFC’s access to low cost funds 54EC Salient Features 54EC Resource Mobilization more Eligible Investors Individuals,HUF,NRI,FIs,LLP,Partnership,Banks, Mutual Funds, Insurance Co., PF funds than triples from FY 17-18 Tenor 5 years from deemed allotment date 54 EC Raisings (Rs’cr.) 1,134 Coupon Rat
Slide 24: Shareholder Outlook
24 5 Shareholder Outlook
Slide 25: Shareholders Outlook
25 Shareholders Outlook Equity market valuation ratios indicate potential for upside GOI EPS Rs. 21.42 (Annualised) 55.99% FIIs & FPIs Book Value Per Share Rs. 171 18.92% Mutual Funds 13.83% Price to Earning Ratio 4.30 55.99% GOI Shareholding Indian FIs & Banks 6.62% 0.05% Employees Price to Book Va
Slide 26: C. Consolidated Performance
26 C. Consolidated Performance
Slide 27: Earning Update
27 1 Earning Update
Slide 28: Key Consolidated Financials
28 Key Consolidated Financials TOTAL INCOME - Rs.62,275 cr.. LOAN ASSET - Rs.6,67,330 cr. PFC FY 20 PAT- Rs.9,477 cr. GROSS NPA – 7.36% Consolidated for FY’20 RONW1 -14.62%. NET NPA - 3.57% 1. Return on Average Net Worth
Slide 29: Key Consolidated Financials
29 Key Consolidated Financials (Rs.’crore) Q4 FY 20 Q3 FY 20 Q4 FY 19 FY 20 FY 19 Interest Income 16,044 15,679 14,183 61,628 53,427 Interest Expense 10,491 10,262 9,146 40,845 34,627 Net Interest Income 5,553 5,417 5,037 20,783 18,800 Net worth Rs.66,165 cr. - Rs.63,484 cr. Rs.66,165 cr, Rs.63,484
Slide 30: Operational Performance
30 2 Operational Performance
Slide 31: Operational Performance – FY'20
31 Operational Performance – FY’20 Loan Asset Book of Rs.6,67,330 cr. Rs.1,43,664 cr. Disbursement for FY’20 Others Others 0.53% 2% Generation (Conventional) 37% T&D 41% Loan Assets as Disbursements Generation for FY’20 on T&D (Conventional) 31.03.2020 49% 54% Renewable Renewable 12%1 5% PFC Group i
Slide 32: Thanks!
32 Thanks! You can reach PFC’s Investor Relations Team at investorrelations@pfcindia.com Any questions? Join us: @pfclindia www.pfcindia.com
Slide 33: Disclaimer
33 Disclaimer ▷ The presentation is prepared based on consolidated/stand-alone audited financial statements of PFC for quarter ended 31.03.2020 ▷ 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 r