Power Finance Corporation Limited · NSE:PFC
Power Finance — Q1 FY2023 Earnings Presentation
26 slides from Power Finance's earnings presentation, Jun 30, 2022
Slide 1: Performance Highlights
Performance Highlights Power Finance Corporation Ltd. Quarter A Maharatna PSU ended 30th June 2022 Funding for a righter Tomorrow
Slide 2: Table of Contents
Table of Contents A. PFC at a Glance 1.Highlights 2.Earning Update B. Stand Alone Performance 3.Asset Quality 4.Operational Performance 5.Shareholder Outlook C. Consolidated Performance 1.Highlights Power Finance Corporation | 2
Slide 3: PFC at a Glance
PFC at a Glance Power Finance Corporation | 3
Slide 4: Leading Financer in Power Sector
Leading Financer in Power Sector Majority Owned by Government of India #365 in the world 1st Maharatna in terms of assets in as per Forbes Global’2021 Financial Space Key financial partner for Government in Power Sector Largest Consolidated Balance Sheet among #29 in Fortune 500 all CPSEs India’2021
Slide 5: PFC Group Structure
PFC Group Structure Power Finance Corporation Associates Subsidiaries Ultra Mega PFC 100% 100% REC Ltd. 52.63% Power Projects Consulting Power Finance Corporation | 5
Slide 6: Stand Alone Performance
Stand Alone Performance Power Finance Corporation | 6
Slide 7: Highlights
1. Highlights Power Finance Corporation | 7 Stand Alone Performance
Slide 8: Q1'23 in Perspective
Q1’23 in Perspective Net worth crosses 60K mark PFC inks JPY 30 Landmark Transaction demonstrating QUAD unity. billion loan agreement with Net worth at Rs.61,060 cr. in Q1’23 Japan Bank for Financing will be for PFC’s viz-a-viz Rs.54,739 cr. in Q1’22 renewable energy portfolio International Co- oper
Slide 9: Earning Update
2. Earning Update Power Finance Corporation | 9 Stand Alone Performance
Slide 10: Revenue & Growth
Revenue & Growth 5% reduction in Interest Expense Rs.5,462 cr. in Q1’23 against Rs.5,739 cr. in Q1’22 (Rs.’crore) Q1 FY 23 Q1 FY 22 FY 22 INTEREST INCOME 8,929 9,264 36,701 INTEREST EXPENSE 5,462 5,739 22,671 NET INTEREST INCOME 3,467 3,525 14,030 PROFIT AFTER TAX 2,110 2,274 10,022 TOTAL COMPREHENS
Slide 11: Key Ratios
Key Ratios Cost of funds reduces by 35 bps 7.08% for Q1’23 versus 7.43% in Q1’22 (Ratios in %) Q1 FY 23 Q1 FY 22 FY 22 YIELD ON EARNING ASSETS 10.01 10.39 10.22 COST OF FUNDS 7.08 7.43 7.30 INTEREST SPREAD ON EARNING 2.93 2.96 2.92 ASSETS NET INTEREST MARGIN ON EARNING 3.69 3.70 3.62 ASSETS CRAR 24.
Slide 12: Asset Quality
3. Asset Quality Power Finance Corporation | 12 Stand Alone Performance
Slide 13: Asset Synopsis – Q1'23
Asset Synopsis –Q1’23 Government Sector Majority Lending to Govt. 84% Sector Powering Indian Electricity Sector for Growth Private Sector 16% Loan Assets Disbursements Sanctions Net NPA Ratio Rs.3,70,186 cr. Rs.4,643 cr. Rs.25,391 cr. 1.73% Power Finance Corporation | 13
Slide 14: Provisioning Snapshot - 30.06.2022
Provisioning Snapshot -30.06.2022 Provisioning Status as on 30.06.2022 69% provisioning against Stage III Assets (NPA) STAGE STAGE TOTAL I & II III STAGE III (as % of Gross Loan Assets) OUTSTANDING LOAN ASSETS OUTSTANDING STAGE III OUTSTANDING LOAN ASSETS OUTSTANDING LOAN ASSETS (IN %) Government Go
Slide 15: Resolution Status – Stage III Assets
Resolution Status – Stage III Assets Resolution status of Rs.20,915 cr. of loan assets in Stage 3 Outside NCLT NCLT Resolution Resolution 14 Projects – Rs.15,338 cr. 9 Projects – Rs.5,578 cr. 72% Provision 62% Provision Lowest Net NPA Ratio of 1.73% in last 5 years Power Finance Corporation | 15
Slide 16: Operational Performance
4. Operational Performance Power Finance Corporation | 16 Stand Alone Performance
Slide 17: Loan Asset - Composition
Loan Asset - Composition (Rs.’crore) As on 30.06.2022 As on 30.06.2021 Loan Asset Mix Gross Loan Assets 3,70,186 3,69,983 Scheme Wise Generation Others 2,10,924 2,26,166 1% - Conventional Generation 1,73,875 1,87,895 T&D 42% - Renewable Energy 37,049 38,271 - Large Hydro Projects (>25MW) 16,389 16,5
Slide 18: Disbursement Composition
Disbursement Composition (Rs.’crore) Q1 FY 23 Q1 FY 22 FY 22 Amt % Amt % Amt % Disbursements 4,643 100% 11,332 100% 51,242 100% Scheme Wise Generation 2,942 63% 6,356 56% 18,196 36% Transmission 417 9% 507 5% 4,636 9% Distribution 1,163 25% 4,465 39% 27,897 54% Others 121 3% 4 0.04% 512 1% Sector Wi
Slide 19: Liability Mix as on 30.06.2022
Liability Mix as on 30.06.2022 Commercial Papers Nil Domestic Bonds Rs.1,80,913 cr. (58%) RTL from Banks/FI’s Rs. 63,319cr. (20%) Foreign Currency Borrowing 93% exchange Rs.3,14,470 cr. Rs. 55,899 cr. (18%) risk hedged for Outstanding FCL up to 5 years Borrowings as Subordinated Bonds on 30.06.2022
Slide 20: Shareholder Outlook
5. Shareholder Outlook Power Finance Corporation | 20 Stand Alone Performance
Slide 21: Shareholder Outlook as on 30.06.2022
Shareholder Outlook as on 30.06.2022 President of India FIIs & FPIs 55.99% 16.21% PFC delivering Dividend Yield1 more than Mutual Funds Bank FD return 12.20% EPS Book Value (Annualized) Per Share Rs.31.96 Rs.231 Indian FIs & Banks 0.59% Price to Price to Book Value Employees 0.04% Bodies Corporate E
Slide 22: Consolidated Performance
Consolidated Performance Power Finance Corporation | 22
Slide 23: Q1'23 Synopsis
Q1’23 Synopsis Profit After Tax Loan Assets Rs.4,580 cr. in Q1’23 vs. Rs.7,58,074 cr. in Q1’ 23 vs. Rs.4,555 cr. In Q1’22 Rs.7,49,373 cr. In Q1’ 22 Net Interest Income Gross NPA Net NPA Rs.7,469 cr. in Q1’23 vs. 5.02% in Q1’23 vs. 5.25% In 1.57% in Q1’23 vs. 1.80% in Rs.7,377cr. In Q1’22 Q1’22 Q1’22
Slide 24: Key Consolidated Financials
Key Consolidated Financials Largest Power Sector CPSE in India Loan Asset Book of more than Rs.7.5 lakh cr. (Rs.’crore) Q1 FY 23 Q1 FY 22 FY 22 INTEREST INCOME 18,306 18,690 74,887 INTEREST EXPENSE 10,837 11,313 44,709 NET INTEREST INCOME 7,469 7,377 30,178 PROFIT AFTER TAX 4,580 4,555 18,768 TOTAL
Slide 25: Contact Information
Investor Relations investorrelations@pfcindia.com Team Equity Share Queries V investorsgrievance@pfcindia.com Contact Information 54EC Bonds - 54ECinvestorcell@pfcindia.com Bond Queries V Other Bonds - bondsinvestorcell@pfcindia.com Join us: @pfclindia Power Finance Corporation | 25 www.pfcindia.com
Slide 26: Disclaimer
Disclaimer The presentation is prepared based on consolidated/stand-alone un-audited financial statements of PFC for quarter ended 30.06.2022. 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