Power Finance Corporation Limited · NSE:PFC
Power Finance — Q2 FY2020 Earnings Presentation
32 slides from Power Finance's earnings presentation, November 2019
Slide 1: Performance Highlights
Power Finance Corporation Ltd. Performance Highlights A Navratna PSU Quarter ended 30th September 2019 Funding for a righter Tomorrow
Slide 2: Table of Contents
Table of Contents A Consolidated Performance B Stand Alone Performance 01 PFC at a Glance 01 Highlights 02 Earning Update 02 Earning Update 03 Operational Performance 03 Asset Quality 04 Operational Performance 05 Shareholder Outlook
Slide 3: A. Consolidated Performance
3 A. Consolidated Performance
Slide 4: PFC at a Glance
4 1 PFC at a Glance
Slide 5: PFC Group Structure
5 PFC Group Structure Power Finance Corporation ASSOCIATES SUBSIDIARIES JOINT VENTURE 24.97% Ultra Mega Power Equity 22.18% PFC Consulting REC EESL Power Projects Capital Advisors 100% 100% 100% 52.63% 47.15% 1. EESL – Energy Efficiency Service Ltd. 2. 47.15% stake in EESL is consolidated stake of P
Slide 6: Earning Update
6 2 Earning Update
Slide 7: Key Consolidated Financials
7 Key Consolidated Financials NET WORTH - Rs.68,204 cr. LOAN ASSET - Rs.6,26,150 cr. PFC H1 20 PAT- Rs.5,397 cr. Gross NPA- 8.00% Consolidated for H1’20 NET NPA - 3.89% CRAR – 17.35% Note: Net worth includes non-controlling interest.
Slide 8: Key Consolidated Financials
8 Key Consolidated Financials (Rs.’crore) Q2 FY 20 Q1 FY 20 Q2 FY 19 H1 FY 20 H1 FY 19 Interest Income 15,397 14,510 12,994 29,907 25,361 Interest Expense 10,153 9,938 8,450 20,091 16,609 Net Interest Income 5,244 4,572 4,544 9,816 8,752 Profit After Tax 2,497 2,900 2,509 5,397 5,373 Total Comprehen
Slide 9: Operational Performance
9 3 Operational Performance
Slide 10: Operational Performance
10 Operational Performance Loan Asset Book of Rs.6,26,150 cr. as on 30.09.2019 Rs. 62,439 cr. disbursed in H1’20 Others Others 1% 3% Generation (Conventional) 30% T&D 40% Loan Assets as Generation Disbursements on (Conventional) during H1’20 30.09.2019 54% T&D 54% Renewable 13% Renewable 5% Post Acq
Slide 11: B. Stand Alone Performance
11 B. Stand Alone Performance
Slide 12: Highlights
12 1 Highlights
Slide 13: Standalone Highlights for H1'20
13 Standalone Highlights for H1’20 Euro 200 mn loan agreement inked with KfW for on lending to State Discoms 01 GMR Chhatisgarh loan upgraded to Standard 02 Asset on resolution Gross Stage III Assets at 9.05 % - 56 bps reduction from Q1’20 03 53 bps increase in CRAR from Q1’20 04 18.37% CRAR as on 3
Slide 14: Earning Update
14 2 Earning Update
Slide 15: Revenue & Growth
15 Revenue & Growth (Rs.’crore) Q2 FY 20 Q1 FY 20 Q2 FY 19 H1 FY 20 H1 FY 19 Interest Income 8,004 7,545 6,943 15,548 13,574 Interest Expense 5,510 5,350 4,749 10,860 9,374 Net Interest 2,494 2,195 2,194 4,688 4,200 Income Profit After Tax1&2 1,157 1,383 1,367 2,540 2,751 Cumulative Provisions 16,27
Slide 16: Key Ratios
16 Key Ratios (Ratios in %) Q2 FY 20 Q1 FY 20 Q2 FY 19 H1 FY 20 H1 FY 19 Yield on Earning 10.60 10.61 10.60 10.60 10.56 Assets Cost of Funds 7.82 7.90 8.09 7.86 8.07 Interest Spread on 2.78 2.71 2.50 2.74 2.49 Earning Assets Net Interest Margin on 3.13 3.06 3.33 3.07 3.28 Earning Assets Net worth (S
Slide 17: Asset Quality
17 3 Asset Quality
Slide 18: Asset Quality Snapshot
18 Asset Quality Snapshot Loan Book of Rs.3,25,434 cr. as on 30.09.2019 Rs.2,68,786 cr. Govt. Loan Rs.56,648 cr. of Pvt. loan Assets Assets Private Government 17% 83% Rs. 27,182 cr. Pvt. loan All Govt. loan assets are assets regular in servicing regular in servicing Rs.29,466 cr. in stress 91% of Lo
Slide 19: Provisioning Snapshot
19 Provisioning Snapshot Provisioning Status as on 30.09.2019 (Rs.’crore) Stage III (NPA) as % Stage I & II Stage III Total of Gross Loan Assets Outstanding Loan Assets - Government Sector 2,68,786 - Nil 2,68,786 - Private Sector 27,182 29,466 9.05% 56,648 Total Outstanding Amount 2,95,968 29,466 9.
Slide 20: Resolution Status – Stage III Assets (1/3)
20 Resolution Status – Stage III Assets (1/3) Resolution status of Rs.29,466 cr. of loan assets in Stage 3 NCLT Resolution Outside NCLT Resolution Rs.14,704 cr. in Rs.14,762 cr. resolution being NCLT pursued outside NCLT 15 projects 14 projects 64% provision 42% provision 72% provision/reserve* avai
Slide 21: Resolution Status – Stage III Assets (2/3)
21 Resolution Status – Stage III Assets (2/3) 15 projects of Rs.14,704 cr. are in NCLT Application filed & admitted 63% 11 Projects ` 9,368 cr. Provision Application filed but Not admitted yet 53% 2 Projects ` 3,701 cr. Provision Liquidation order passed in NCLT 93% 2 Projects ` 1,635 cr. Provision
Slide 22: Resolution Status – Stage III Assets (3/3)
22 Resolution Status – Stage III Assets (3/3) 14 projects of Rs.14,762 cr. resolution outside NCLT Resolution by Jan’2020 under RBI Circular* Resolution by July’2020 under RBI Circular* 48% 4 Projects ` 9,132 cr. 40% Provision 1 Project ` 3,001 cr. Provision Resolution for projects NOT impacted by R
Slide 23: Operational Performance
23 4 Operational Performance
Slide 24: Loan Asset - Composition
24 Loan Asset - Composition Others 1% T&D 29% Increasing thrust towards T&D & As on 30.09.2019 Generation renewable business (Conventional) Renewable 64% 6% (Rs.’crore) As on 30.09.2019 As on 30.09.2018 Gross Loan Assets 3,25,434 2,93,083 Scheme Wise Generation 2,28,644 2,12,635 - Renewable Energy 1
Slide 25: Disbursements - Composition
25 Disbursements - Composition (Rs.’crore) Q2 FY 20 Q2 FY 19 H1 FY 20 H1 FY 19 Amt. % Amt. % Amt. % Amt. % Disbursements 18,366 100% 17,505 100% 28,833 100% 30,486 100% Scheme Wise Generation 8,712 47% 5,730 33% 15,195 53% 10,648 35% Transmission 1,693 9% 2,424 14% 2,576 9% 2,801 9% Distribution 7,7
Slide 26: Well Managed Liability Profile
26 Well Managed Liability Profile Rs. 2,82,261 of outstanding borrowings as on 30.09.2019 16% EUR 200 million Loan agreement with KFW For on lending for development of distribution infrastructure of 15% state owned companies 1% 3% 0.79% Diversification of funding profile 7.86% 85% from domestic sour
Slide 27: Liability Mix as on 30.09.2019
27 Liability Mix as on 30.09.2019 Domestic Bonds Rs.1,79,903 cr. RTL from Banks/FI’s Rs. 46,699 cr. Diversified Foreign Currency Borrowing Liability Rs.2,82,261 cr. Rs.41,324 cr. Outstanding Mix Borrowings as Commercial Papers Rs.2,906 cr. on 30.09.2019 Subordinated Bonds Rs.9,212 cr. 54EC Bonds Rs.
Slide 28: PFC's access to low cost funds
28 PFC’s access to low cost funds 54EC Salient Features Individuals,HUF,NRI,FIs,LLP,Partnership,Banks, Eligible Investors Mutual Funds, Insurance Co., PF funds Tenor 5 years from deemed allotment date 54EC Resource Coupon Rate 5.75% per annum. Mobilization Up by 33% from Q1’20 Long Term Capital Gain
Slide 29: Shareholder Outlook
29 5 Shareholder Outlook
Slide 30: Shareholders Outlook
30 Shareholders Outlook Equity market valuation ratios indicate potential for upside GOI EPS Rs. 19.24 (Annualised) 56% FIIs & FPIs Book Value Per Share Rs. 172 19% Mutual Funds 13% Price to Earning Ratio 5.8 56% GOI Shareholding Indian FIs & Banks 7% 0.05% Employees Price to Book Value Ratio 0.65 4
Slide 31: Thanks!
31 Thanks! You can reach PFC’s Investor Relations Team at investorrelations@pfcindia.com Any questions? Join us: @pfclindia www.pfcindia.com
Slide 32: Disclaimer
32 Disclaimer ▷ The presentation is prepared based on stand-alone unaudited financial statements of PFC for quarter ended 30.09.2019 ▷ 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 required to