Power Finance Corporation Limited · NSE:PFC
Power Finance — Q3 FY2024 Earnings Presentation
30 slides from Power Finance's earnings presentation, February 2024
Slide 1: Performance Highlights Quarter ended 31st December 2023
Funding for a brighter Tomorrow Performance Highlights Quarter ended 31st December 2023 Power Finance Corporation Ltd. A Maharatna PSU
Slide 2: Table of Contents
Table of Contents A PFC At a Glance 1. Powering Nation’s Development 2. PFC Steering into new directions 3. PFC Group Structure 1. Consolidated Highlights B Consolidated Performance 2. Key Consolidated Financials 1. Highlights C Standalone Performance 2. Earning Update 3. Asset Quality 4. Operationa
Slide 3: PFC at a Glance
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Slide 4: Powering Nation's Development
Powering Nation’s Development Government’s key financial Highest Long Term Majority Owned by partner for driving reforms Domestic Rating Government of India & developments in Power of ‘AAA’ Sector Largest NBFC Group in India #Amongst the top 10 #34 in Fortune 500 profit-making CPSEs as India’2022 PF
Slide 5: PFC steering into new directions
PFC steering into new directions Driving India’s Infrastructure growth Strategic approach for risk diversification- Infra book will be build up gradually Initial focus on associating with projects of national importance and large- scale greenfield projects Since August’22, PFC sanctioned Rs. 31,222
Slide 6: PFC Group Structure
PFC Group Structure Power Finance Corporation Associates Subsidiaries Ultra Mega PFC PFC 100% 100% 100% REC Ltd. 52.63% Power Projects Consulting Projects 6 5
Slide 7: Consolidated Performance
Consolidated Performance 3 6
Slide 8: Consolidated Highlights
Consolidated Highlights Consolidated The consolidated net disbursements crosses 19% growth witnessed in NPA ratio at below 1% 20% increase in 26% increase Rs. 2 lakh crores in consolidated loan asset consolidated net worth(1) registered in Profit 9M’24 book after Tax • Consolidated • Net NPA ratio o
Slide 9: Key Consolidated Financials
Key Consolidated Financials (Rs.’crore) Q3 FY 24 Q3 FY 23 9M FY 24 9M FY 23 INTEREST INCOME 23,284 19,348 66,194 56,879 INTEREST EXPENSE 14,827 12,129 42,810 34,380 NET INTEREST INCOME 8,457 7,219 23,384 22,499 PROFIT AFTER TAX 6,294 5,241 18,905 15,050 TOTAL COMPREHENSIVE 5,994 5,195 19,757 13,073
Slide 10: Standalone Performance
Standalone Performance 3 9
Slide 11: 1. Highlights
Funding for a Brighter Tomorrow 1. Highlights Standalone Performance 11
Slide 12: 9M'24 in Perspective
9M’24 in Perspective 26% increase in PAT Double digit growth PFC inks MoU worth Rs. Net NPA ratio now below 1% PFC yet again bags registered for 9M’24 of 16% in Loan asset 25,000 crores with Govt. SAFA(1) Gold award book of Gujarat • Net NPA ratio at 0.90% • Rs. 10,232 crores in • SAFA Gold awarded
Slide 13: PFC to Go Global - To set up a subsidiary in IFSC GIFT City, Gujarat
PFC to Go Global- To set up a subsidiary in IFSC GIFT City, Gujarat Vision is to expand business and maintain long term growth trajectory A landmark milestone- IFSC entity will open avenues in international lending space for PFC Leveraging GIFT City benefits to strengthen PFC’s brand globally - Worl
Slide 14: 2. Earning Update
Funding for a Brighter Tomorrow 2. Earning Update Standalone Performance 14
Slide 15: Revenue & Growth
Revenue & Growth (Rs.’ crore) Q3 FY 24 Q3 FY 23 9M FY 24 9M FY 23 INTEREST INCOME 11,331 9,566 32,147 28,029 INTEREST EXPENSE 7,174 5,996 20,757 17,142 NET INTEREST INCOME 4,157 3,570 11,390 10,887 PROFIT AFTER TAX 3,377 3,005 10,232 8,113 TOTAL COMPREHENSIVE 3,797 3,088 11,206 7,751 INCOME 15 Some
Slide 16: Key Ratios
Key Ratios (Ratios in %) 9M FY 24 FY 23 9M FY 23 YIELD ON EARNING ASSETS 10.02 10.04 10.07 COST OF FUNDS 7.47 7.51 7.53 INTEREST SPREAD ON EARNING ASSETS 2.55 2.53 2.54 NET INTEREST MARGIN ON EARNING 3.42 3.36 3.37 ASSETS CRAR 26.86 24.37 24.41 NET WORTH Rs.76,780 cr. Rs.68,202 cr. Rs.65,289 cr. (SH
Slide 17: 3. Asset Quality
Funding for a Brighter Tomorrow 3. Asset Quality Standalone Performance 17
Slide 18: Asset Synopsis - 9M'24
Asset Synopsis -9M’24 Government Sector Majority Lending to Govt. 82% Sector No new NPA added in last one year 68% increase in disbursement in 9M FY’24 Y-o-Y Private Sector 18% Loan Assets Disbursements Net NPA Ratio 37% Y-o-Y growth in Renewable portfolio Rs.4,57,027 cr. Rs.79,049 cr. 0.90 % Rs.54,
Slide 19: Robust asset quality
Robust asset quality Net NPA Ratio below 1%- the lowest in last 6 years 9.39% 8.08% 5.70% 5.61% Continuously improving asset quality 4.55% 3.80% 3.91% Decreasing NPA trend 3.52% testament to PFC’s successful 2.09% resolution efforts 1.76% 1.07% 0.90% Net NPA Ratio Gross NPA Ratio FY 19 FY 20 FY 21 F
Slide 20: Provisioning Snapshot - 31.12.2023
Provisioning Snapshot -31.12.2023 Provisioning Status as on 31.12.2023 (Rs.’ crore) 74% provisioning against Stage III OUTSTANDING LOAN ASSETS Assets (NPA) STAGE III STAGE I & II STAGE III TOTAL (as % of Gross Loan Assets) Government Sector 3,73,929 NIL 3,73,929 OUTSTANDING STAGE III (IN %) Private
Slide 21: Resolution Status - Stage III Assets
Resolution Status- Stage III Assets Resolution status of Rs.16,073 cr. of loan assets in Stage 3 NCLT Resolution Outside NCLT Resolution 13 Projects – Rs.13,899 cr. 8 Projects – Rs.2,174 cr. 77% Provision 55% Provision Lowest Net NPA Ratio of 0.90% in last 6 years 21
Slide 22: 4. Operational Performance
Funding for a Brighter Tomorrow 4. Operational Performance Standalone Performance 22
Slide 23: Loan Asset - Composition
Loan Asset - Composition Loan Asset Mix (Rs.’crore) As on 31.12.2023 As on 31.12.2022 Others Gross Loan Assets 4,57,027 3,93,387 2% Scheme Wise T&D 47% Generation 2,31,424 2,16,611 - Conventional Generation 1,77,156 1,76,977 - Renewable Energy 54,268 39,634 - Large Hydro Projects (>25MW) 15,663 16,0
Slide 24: Disbursement Composition
Disbursement Composition (Rs.’crore) Q3 FY 24 Q3 FY 23 9M FY 24 9M FY 23 Amt % Amt % Amt % Amt % Disbursements 23,487 100% 25,178 100% 79,049 100% 46,968 100% Scheme Wise Generation 6,080 26% 7,227 29% 18,457 23% 19,110 41% Transmission 947 4% 756 3% 3,294 4% 2,199 5% Distribution 13,950 59% 16,392
Slide 25: Borrowing Mix as on 31.12.2023
Borrowing Mix as on 31.12.2023 87%* exchange risk hedged on total FC portfolio 92%* exchange risk hedged Domestic Bonds RTL from Rs.2,29,915cr. (58%) Banks/FI’s for FCL up to 5 years residual Rs. 73,197cr. (19%) maturity Commercial Foreign Currency Papers Borrowing Rs.3,94,113 cr. Nil Rs. 72,185 cr.
Slide 26: 5. Shareholder Outlook
Funding for a Brighter Tomorrow 5. Shareholder Outlook Standalone Performance 26
Slide 27: Shareholder Outlook as on 31.12.2023
Shareholder Outlook as on 31.12.2023 PFC delivering Dividend Yield1 more than Bank FD return EPS (Annualized) Rs.41.34 Price to Earning Ratio 9.25 Book Value Per Share Rs.232.66 QIB Price to Book Value Ratio 1.64 Share Price up by more than 50% in Q3’24 Above ratios are for 9M FY’24 & are based on t
Slide 28: Investor Resources
Investor Resources Annual Report https://www.pfcindia.com/Home/VS/72 Financial results https://www.pfcindia.com/Home/VS/73 Join us: @pfclindia Investor https://www.pfcindia.com/Home/VS/10201 announcements www.pfcindia.com Investor FAQs https://www.pfcindia.com/FAQ Recent reports =https://cea.nic.in/
Slide 29: Contact Information
Contact Information Investor Relations investorrelations@pfcindia.com Team Join us: @pfclindia Equity Share investorsgrievance@pfcindia.com Queries www.pfcindia.com 54EC Bonds - 54ECinvestorcell@pfcindia.com Bond Queries Other Bonds - bondsinvestorcell@pfcindia.com 29
Slide 30: Disclaimer
Disclaimer The presentation is prepared based on consolidated/stand-alone un-audited financial statements of PFC for quarter ended 31.12.2023. 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 requ