Power Finance Corporation Limited · NSE:PFC
Power Finance — Q3 FY2021 Earnings Presentation
30 slides from Power Finance's earnings presentation, February 2021
Slide 1: Performance Highlights Quarter/Nine months ended 31st December 2020
Power Finance Corporation Ltd. A Navratna PSU Performance Highlights Quarter/Nine months ended 31st December 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 Group in the Indian power sector Involving synergies of 2 “Navratna” Companies - PFC & REC Majority Highest Long Key financial Owned by Term Largest Group #33 in partner for Government of Domestic in Indian Power Fortune 500 Gov
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 Projects (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: 9M FY21 in Perspective
9M FY21 in Perspective 89 bps increase in 164 bps reduction in Stressed Asset of Net worth crosses 45% increase in PAT from 9M’20 CRAR from 9M’20 Net NPA levels from Rs.5,105 cr. Resolved Rs.50,000 cr. mark 9M’20 & upgraded Rs.6,117 cr. in 9M’21 vs. 9M’21 CRAR at 20.21% 2.30% in 9M’21 vs. RKM Powerg
Slide 9: Borrowing Highlights
Borrowing Highlights PFC successfully taps retail investors through public issue of taxable bonds in Jan’21 Rs.4,429 cr. raised Base Issue size ~ 500 cr.~ oversubscribed by 9x Tenor - ranging from 3 to 15 years Competitive cost of public issuance - fixed/floating structure ranging from 4.65%
Slide 10: 2. Earning Update
2. Earning Update
Slide 11: Revenue & Growth
Revenue & Growth (Rs.’crore) Q3 FY 21 Q3 FY 20 9M FY 21 9M FY 20 Particulars Interest Income 9,327 8,144 27,270 23,665 Interest Expense 5,885 5,498 17,391 16,303 Net Interest Income 3,442 2,646 9,879 7,362 Profit After Tax 2,333 1,680 6,117 4,220 Total Comprehensive Income 2,466 1,758 6,161 4,150 (Y
Slide 12: Key Ratios
Key Ratios (Ratios in %) Q3 FY 21 Q3 FY 20 9M FY 21 9M FY 20 Particulars Yield on Earning Assets 10.68 10.66 10.68 10.61 Cost of Funds 7.48 7.75 7.51 7.82 Interest Spread on Earning 3.20 2.91 3.17 2.79 Assets Net Interest Margin on Earning 3.63 3.28 3.67 3.14 Assets CRAR 20.21 19.32 20.21 19.32 Net
Slide 13: 3. Asset Quality
3. Asset Quality
Slide 14: Asset Quality Snapshot
Asset Quality Snapshot Rs.3,65,031 cr. loan book as on 31.12.2020 Net NPAs continue their downward trend LOAN ASSET COMPOSITION 9.57% Pvt. 9.39% 16% 8.08% 7.50% 7.15% 7.39% 5.85% 4.55% 3.80% 3.41% 3.12% 2.30% FY 18 FY 19 FY 20 Q1 21 H1 21 9M 21 Govt. Net Stage III Ratio Gross Stage III Ratio 84% 94%
Slide 15: Provisioning Snapshot – 31.12.2020
Provisioning Snapshot – 31.12.2020 (Rs.’crore) Stage III (NPA) Stage I & II Stage III as % of Gross Total Loan Assets Outstanding Loan Assets - Government Sector 3,06,043 - - 3,06,043 Provisioning Status - Private Sector 37,642 21,346 - 58,988 as on 31.12.2020 Total Outstanding 3,43,685 21,346 5.85%
Slide 16: Resolution Status – Stage III Assets
Resolution Status – Stage III Assets Resolution status of Rs.21,346 cr. of loan assets in Stage III NCLT Resolution Outside NCLT Resolution Rs.16,185 cr. in NCLT Rs.5,161 cr. resolution being pursued outside NCLT 17 projects 07 projects 65% provision 47% provision R.K.M. Power Gen Loan of Rs.5,105 c
Slide 17: 4. Operational Performance
4. Operational Performance
Slide 18: Loan Asset – Composition
Loan Asset – Composition Continued focus on T&D and Renewable Business (Rs.’crore) As on As on As on 31.12.2020 31.12.2019 31.03.2020 Others Gross Loan Assets 3,65,031 3,32,962 3,44,905 1% Scheme Wise Generation 2,34,135 2,33,245 2,37,178 T&D 35% Conventional Generation 1,95,454 1,974,88 2,00,173
Slide 19: Continued Focus on Renewable Business
Continued Focus on Renewable Business Key Highlights Azure Power, Ostro Kannada Power, Adani Wind 6 Times Jump in Renewable Major Borrowers Energy (GJ), Adani Green energy, Acme Aklera business since FY 2015-16 Power (in’ Rs. Cr.) Cumulative More than Rs.50,000 cr. Sanctions CAGR-44% 19,411 15,390 1
Slide 20: Disbursement Composition
Disbursement Composition (Rs.’crore) Q3 FY 21 Q3 FY 20 9M FY21 9M FY20 Amt % Amt % Amt % Amt % Disbursements 13,847 100% 18,413 100% 59,943 100% 47,246 100% Scheme Wise Generation 1,763 13% 11,936 65% 22,527 38% 27,132 57% Transmission 1,104 8% 1,610 9% 4,144 7% 4,185 9% Distribution 10,959 79% 4,81
Slide 21: Liability Mix as on 31.12.2020
Liability Mix as on 31.12.2020 Commercial Papers Rs.3,050 cr. (1%) Foreign Currency Borrowing Subordinated Bonds Rs.9,212 cr. (3%) Rs.47,226 cr. (15%) 74% exchange RTL from Banks/FI’s Rs.3,24,189 cr. 54EC Bonds risk hedged for Rs. 66,070 cr. (20%) Outstanding Rs. 2,299 cr. (0.71%) Borrowings as FCL
Slide 22: 5. Shareholder Outlook
5. Shareholder Outlook
Slide 23: Shareholder Outlook as on 31.12.2020
Shareholder Outlook as on 31.12.2020 President of India FIIs & FPIs 55.99% 17.37% Equity Ratios Indicate Potential For Upside Mutual Funds 13.89% EPS Book Value (Annualized) Per Share Rs.30.90 Rs.197.02 As on 30.06.2020 Price to Price to Book Earning Ratio Value Ratio Indian Fis & Banks 3.70 0.58 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.53,545 cr. 9M’21 PAT- Rs.11,810 cr. LOAN ASSET - Rs.7,22,098 cr. NETWORTH - Rs.79,706 cr. PFC Consolidated for 9M’21 Gross NPA- 5.48% NET NPA - 2.12% 26
Slide 27: Key Consolidated Financials
Key Consolidated Financials (Rs.’crore) Q3 FY 21 Q3 FY 20 9M FY 21 9M FY 20 Particulars Interest Income 18,227 15,679 53,117 45,586 Interest Expense 11,330 10,259 33,439 30,354 Net Interest Income 6,897 5,420 19,678 15,232 Profit After Tax 3,963 3,387 11,810 8,784 Total Comprehensive Income 4,280 3,
Slide 28: Thanks Any Questions?
Thanks Any Questions? For questions on PFC’s financial performance, you can reach PFC Investor Relations Team at investorrelations@pfcindia.com Join us: @pfclindia www.pfcindia.com 28
Slide 29: Contact Information For Investors
Contact Information For Investors For investment in 54 EC Capital Gain Bonds - 54ECinvestorcell@pfcindia.com For all Bonds Queries - bondsinvestorcell@pfcindia.com Tel - 011-23456000 Join us: @pfclindia www.pfcindia.com 29
Slide 30: Disclaimer
Disclaimer ▷ The presentation is prepared based on consolidated/stand-alone un-audited financial statements of PFC for quarter & nine months ended 31.12.2020. ▷ may be required to be made on account of introduction of new standards or its interpretation, receipt of guidelines or circulars from regul