Power Finance Corporation Limited · NSE:PFC
Power Finance — Q1 FY2021 Earnings Presentation
29 slides from Power Finance's earnings presentation, Jun 30, 2020
Slide 1: Performance Highlights Quarter ended 30th June 2020
Power Finance Corporation Ltd. A Navratna PSU Performance Highlights Quarter ended 30th June 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 in the Indian power sector Group with 2 “Navratna” Companies – PFC & REC Majority Highest Long Key financial Owned by Term #34 in partner for Largest Group Government of Domestic Fortune 500 Government in in Power sector India R
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 Project (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: Q1’21 in Perspective
Q1’21 in Perspective 23% Y-o-Y 36 bps increase in 2 Stressed Assets of 211 bps reduction in Net NPA drops by 124 increase in PAT CRAR from Q4’20 Rs.1,353 cr. resolved NPA levels bps from Q1’20 & upgraded Rs. 1,700 cr. in Q1’21 Q1’21 CRAR at 17.32% - Essar Transmission - Rs.438 cr. 7.50% in Q1’21 vs.
Slide 9: PFC’s Discom Lending Scheme
PFC’s Discom Lending Scheme So far sanctioned more than Rs.30,000 cr. & disbursed more than Rs.8,500 cr. under the Scheme Govt. announced Rs.90,000 cr. liquidity package for DISCOMs. PFC &REC mandated as key lending partner. 01 04 Maximum Tenure - 10 years. Principal moratorium on case to case basis
Slide 10: 2. Earning Update
2. Earning Update
Slide 11: Revenue & Growth
Revenue & Growth (Rs.’crore) Q1 FY 21 Q1 FY 20 FY 20 Particulars Interest Income 8,749 7,531 31,950 Interest Expense 5,676 5,366 21,853 Net Interest Income 3,073 2,165 10,097 Profit After Tax 1,700 1,383 5,655 Total Comprehensive Income 1,646 1,408 5,321 (Y/E- March) Some figures may have been regro
Slide 12: Key Ratios
Key Ratios (Ratios in %) Q1 FY 21 Q1 FY 20 FY 20 Particulars Yield on Earning Assets 10.68 10.61 10.63 Cost of Funds 7.68 7.90 7.79 Interest Spread on Earning Assets 3.00 2.71 2.83 Net Interest Margin on Earning Assets 3.48 3.06 3.17 Net Worth Rs.44,709 cr. Rs.46,940 cr. Rs.45,164 cr. (Share Capital
Slide 13: 3. Asset Quality
3. Asset Quality
Slide 14: Provisioning Snapshot – 30.06.2020
Provisioning Snapshot – 30.06.2020 (Rs.’crore) Stage III (NPA) Stage I & II Stage III as % of Gross Total Loan Assets Outstanding Loan Assets - Government Sector 2,94,886 - Nil 2,94,886 Provisioning Status - Private Sector 32,174 26,535 7.50% 58,709 as on 30.06.2020 Total Outstanding 3,27,060 26,535
Slide 15: Asset Quality Snapshot
Asset Quality Snapshot Rs.3,53,595 cr. loan book as on 30.06.2020 Lowest Net NPA in last 4 years GOVERNMENT SECTOR PRIVATE SECTOR STANDARD ASSET 7.39% 4.55% 3.80% 3.41% FY 17-18 FY 18-19 FY 19-20 Q1 20-21 83% 17% 92% FY 17-18 Net NPA ratio based on RBI norms 15
Slide 16: Resolution Status – Stage III Assets
Resolution Status – Stage III Assets Resolution status of Rs.26,535 cr. of loan assets in Stage 3 NCLT Resolution Outside NCLT Resolution Rs.16,162 cr. in NCLT Rs.10,373 cr. resolution being pursued outside NCLT 17 projects 10 projects 62% provision 42% provision 74% provision/reserve* available aga
Slide 17: 4. Operational Performance
4. Operational Performance
Slide 18: Loan Asset – Composition
Loan Asset – Composition Continued focus on T&D & renewable business (Rs.’crore) As on As on As on 30.06.2020 30.06.2019 31.03.2020 Others Gross Loan Assets 3,53,595 3,16,886 3,44,905 1% Scheme Wise T&D Generation 2,43,607 2,25,449 2,37,178 30% Conventional Generation 2,06,092 2,06,947 2,00,173
Slide 19: Disbursement Composition
Disbursement Composition (Rs.’crore) Q1 FY 21 Q1 FY 20 FY 20 Amt % Amt % Amt % Disbursements 17,271 100% 10,466 100% 67,997 100% Scheme Wise Generation 10,909 63% 6,483 62% 36,012 53% Transmission 1,657 10% 883 8% 7,096 10% Distribution 4,634 27% 3,053 29% 24,331 36% Others 71 0.4% 48 0.5% 558 1% Se
Slide 20: Liability Mix as on 30.06.2020
Liability Mix as on 30.06.2020 Commercial Papers Rs.4,760 cr. (2%) Foreign Currency Borrowing Subordinated Bonds Rs.9,212 cr. (3%) Rs.47,804 cr. (15%) 74% exchange RTL from Banks/FI’s Rs.3,12,834 cr. 54EC Bonds risk hedged for Rs. 54,720 cr. (17%) Outstanding Rs. 2,088 cr. (1%) Borrowings as FCL wit
Slide 21: PFC’s access to low cost funds
PFC’s access to low cost funds 54 EC Salient Features Individuals,HUF,NRI,FIs,LLP,Partnership,Banks, Eligible Investors Mutual Funds, Insurance Co., PF funds 54 EC Tenor 5 years from deemed allotment date Borrowing Portfolio Coupon Rate 5.00% per annum. doubles from Q1’20 Long Term Capital Gain on t
Slide 22: 5. Shareholder Outlook
5. Shareholder Outlook
Slide 23: Shareholder Outlook as on 30.06.2020
Shareholder Outlook as on 30.06.2020 President of India FIIs & FPIs 55.99% 17.46% Equity Ratios Indicate Potential For Upside Mutual Funds 14.53% EPS Book Value (Annualized) Per Share Rs.25.75 Rs.177.80 As on 30.06.2020 Price to Price to Book Earning Ratio Value Ratio Indian Fis & Banks 3.27 0.47 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.16,932 cr. Q1’21 PAT- Rs.3,557 cr. LOAN ASSET - Rs.6,84,383 cr. CRAR – 16.48% PFC Consolidated for Q1’21 Gross NPA- 6.83% NET NPA - 3.15% 26
Slide 27: Key Consolidated Financials
Key Consolidated Financials (Rs.’crore) Q1 FY 21 Q1 FY 20 FY 20 Particulars Interest Income 16,856 14,509 61,628 Interest Expense 10,869 9,937 40,845 Net Interest Income 5,987 4,572 20,783 Profit After Tax 3,557 2,900 9,477 Total Comprehensive Income 3,665 2,899 8,589 (Y/E- March) Some figures may h
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 ended 30.06.2020 ▷ 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