Power Finance Corporation Limited · NSE:PFC
Power Finance — Q3 FY2022 Earnings Presentation
28 slides from Power Finance's earnings presentation, February 2022
Slide 1: Performance Highlights Quarter ended 31st December 2021
Funding for a righter Tomorrow Power Finance Corporation Ltd. A Maharatna PSU Performance Highlights Quarter ended 31st December 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 Status of “Maharatana” for a CPSE conferred by Govt. on 12th October 2021 #365 in the world in #29
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: 9M'22 in Perspective
9M’22 in Perspective 21% increase in Raised USD 625 mn PAT from 9M’21 through Foreign Currency Term Loans Rs.7,412 cr. in 9M’22 vs. 5 year Tenure Rs.6,117 cr. In 9M’21 Fixed Rate Coupon Loan Power Finance Corporation Improved CRAR Level viz-a-viz 9M’22 Award & Accolades Conferred ICAI Silver 9M’22 C
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 Q3FYFY2122 Q1 Q3 FY 21 9M FY 22 9M FY 21 Interest Income 9,297 9,327 27,718 27,270 Interest Expense 5,688 5,885 17,289 17,391 Power Finance Corporation Net Interest Income 3,609 3,442 10,429 9,879 Profit After Tax 2,380 2,333 7,412 6,117 Total Comprehensive I
Slide 11: Key Ratios
Key Ratios (Ratios in %)) Particulars Q3 FY 22 Q3 FY 21 9M 22 9M 21 Yield on Earning Assets 10.21 10.68 10.33 10.68 Cost of Funds 7.18 7.48 7.33 7.51 Power Finance Corporation Interest Spread on Earning Assets 3.03 3.20 3.00 3.17 Net Interest Margin on Earning Assets 3.70 3.63 3.69 3.67 CRAR 22.68 2
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.3,71,649 cr. loan book as on 31.12.2021 Lowest Net NPA in last 3 years Adequate 63% 67% GOVERNMENT SECTOR 83% Provision Levels 51% 53% leading to a Power Finance Corporation PRIVATE Resilient 17% SECTOR 4.55% 3.80% Balance Sheet 2.09% 2.00% FY 19 FY 20 FY 21 9M 22 PERFORMIN
Slide 14: Provisioning Snapshot - 31.12.2021
Provisioning Snapshot -31.12.2021 (Rs.’crore) STAGE III STAGE I & II STAGE III as % of Gross Loan TOTAL Assets OUTSTANDING LOAN ASSETS - Government Sector 3,10,008 - - 3,10,008 Power Finance Corporation Provisioning Status - Private Sector 39,136 22,505 - 61,641 as on 31.12.2021 TOTAL OUTSTANDING 3,
Slide 15: Resolution Status
Resolution Status Stage III Assets Rs.16,688 cr. in NCLT 16 projects Resolution status Under NCLT 69% provision Power Finance Corporation of Rs.22,505 cr. of loan assets in Rs.5,817cr. resolution being Stage III pursued outside NCLT 11 projects Outside NCLT 60% 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) As on 31.12.2021 As on 31.12.2020 Loan Asset Mix Gross Loan Assets 3,71,649 3,65,031 Scheme Wise Others T&D 1% Generation 2,18,295 2,34,135 41% - Conventional Generation 1,80,080 1,95,454 - Renewable Energy 38,215 38,681 Power Finance Corporation • Renewable Ener
Slide 18: Disbursement Composition
Disbursement Composition (Rs.’crore) Q3 FY 22 Q3 FY 21 9M FY 22 9M FY 21 Amt % Amt % Amt % Amt % Disbursements 9,098 100% 13,847 100% 34,590 100% 59,943 100% Scheme Wise Generation 3,544 39% 1,763 13% 12,517 36% 22,527 38% Power Finance Corporation Transmission 1,544 17% 1,104 8% 2,510 7% 4,144 7% D
Slide 19: Liability Mix as on 31.12.2021
Liability Mix as on 31.12.2021 Commercial Papers Nil Foreign Currency Subordinated Bonds Borrowing Rs.9,212 cr. (3%) Rs.55,333 cr. (17%) 91% exchange risk Power Finance Corporation hedged for FCL upto 5 years residual RTL from Banks/FI’s Rs.3,23,549 cr. 54EC Bonds Rs. 64,366 cr. (20%) Rs. 3,487cr. (
Slide 20: Stand Alone Performance: 5. Shareholder Outlook
Stand Alone Performance Power Finance Corporation 5. Shareholder Outlook 20
Slide 21: Shareholder Outlook as on 31.12.2021
Shareholder Outlook as on 31.12.2021 President of India FIIs & FPIs 55.99% 16.71% Equity Ratios Indicate Mutual Funds 13.08% Potential For Upside EPS Book Value (Annualized) Per Share Power Finance Corporation Rs.37.44 Rs.221.48 Indian FIs & Banks Price to Price to Book 0.53% 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 Loan Assets Rs.14,483 cr. in 9M’22 vs. Rs.11,810 Rs.7,60,409 cr. in 9M’22 vs. cr. in 9M’21 Rs.7,22,098 cr. in 9M’21 Power Finance Corporation Total Income Rs.57,472 cr. in 9M’22 vs. Rs.53,545 cr. in 9M’221 Net NPA Net Interest Income 1.86% in 9M’22 vs 2.12% in
Slide 25: Key Consolidated Financials
Key Consolidated Financials (Rs.’crore) Particulars Q3FYFY2122 Q1 Q3 FY 21 9M FY 22 9M FY 21 Interest Income 19,009 18,227 56,626 53,117 Interest Expense 11,235 11,330 33,783 33,439 Power Finance Corporation Net Interest Income 7,774 6,897 22,843 19,678 Profit After Tax 4,905 3,963 14,483 11,810 Tot
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 un-audited financial statements of PFC for financial year ended 31.12.2021. ▷ There is a possibility of Ind AS financial results and the additional disclosures to be updated, modified or amended because of adjustments which