Power Finance Corporation Limited · NSE:PFC

Power Finance — Debt Investor Presentation (May 2019)

15 slides from Power Finance's debt investor presentation, May 29, 2019

  1. Slide 1: Power Finance Corporation: Credit Profile Overview

    Power Finance Corporation: Credit Profile Overview © 2018 CRISIL Ltd. All rights reserved. May 29, 2019 1

  2. Slide 2: Key drivers of credit profile (CRISIL AAA/Stable/CRISIL A1+)

    Key drivers of credit profile (CRISIL AAA/Stable/CRISIL A1+) ● Supporting Factors ■ Dominant market position and role in power financing segment ■ Adequate resource profile ■ Adequate capitalisation © 2018 CRISIL Ltd. All rights reserved. ■ Strategic importance to and majority ownership by Governmen

  3. Slide 3: Dominant market position and role in the power financing segment

    Dominant market position and role in the power financing segment Steady growth in loan book PFC Title Chart PFC+REC 700 596 600 500 © 2018 CRISIL Ltd. All rights reserved. Rs'000 crore 400 300 200 279 315 100 218 239 246 0 2015 2016 2017 2018 2019 2019 Loan Book Number in boxes indicate total loan b

  4. Slide 4: Incremental disbursements driven by transmission and distribution

    Incremental disbursements driven by transmission and distribution Incremental disbursements towards T&D segment Fiscal 2019 PFC PFC+REC 1% 3% Generation © 2018 CRISIL Ltd. All rights reserved. 30% 40% 43% Transmission 46% Fiscal 2018 Fiscal 2019 44% 60% 10% Distribution 11% Others 13% Source: Compan

  5. Slide 5: Adequate resource profile with diversified investor base

    Adequate resource profile with diversified investor base Increasing funding from banks/financial institutions Increasing proportion of foreign currency borrowings PFC PFC+REC 70 PFC PFC+REC 188 200 203 230 276 515 5% 5% 4% 8% 10% 12% 60 5% 50 12% 10% 11% Rs'000 crore 22% © 2018 CRISIL Ltd. All right

  6. Slide 6: Inherent vulnerability in asset quality with concentration

    Inherent vulnerability in asset quality with concentration… Gross non-performing assets primarily from private sector Majority of portfolio is towards government sector PFC PFC+REC PFC+REC 60 12.5% 14% 12% Private Sector 50 15% 9.6% 9.4% 10% Rs’000 crore 40 8.4% © 2018 CRISIL Ltd. All rights reserve

  7. Slide 7: Private sector exposures remain a monitorable

    …private sector exposures remain a monitorable About 57% of the private sector exposures remain under stress PFC+REC Projects being resolved through reference to NCLT, one time settlement (OTS), sale of © 2018 CRISIL Ltd. All rights reserved. assets to domestic and foreign bidders NPA (Rs Private Se

  8. Slide 8: Adequate capitalization, supported by healthy internal accruals

    Adequate capitalization, supported by healthy internal accruals Sizeable consolidated net worth, gearing increase on account of acquisition of REC PFC PFC+REC 70 8.1 9 60 8 Rs’000 crore 50 6.4 7 5.8 5.6 5.5 5.7 © 2018 CRISIL Ltd. All rights reserved. 6 In times 40 5 30 63 4 20 40 43 3 32 36 37 2 10

  9. Slide 9: Moderate earnings profile

    Moderate earnings profile Earnings profile marked by stability in returns 14.0 2.8% PFC PFC+REC 3.0% 2.6% 12.0 2.5% Decrease in PAT due 2.2% 2.2% 2.1% 10.0 to realignment with RBI’s norms 2.0% Rs’000 crore © 2018 CRISIL Ltd. All rights reserved. 8.0 1.5% 6.0 0.9% 1.0% 4.0 2.0 0.5% 6.0 6.2 2.2 5.8 7.

  10. Slide 10: Adequate liquidity

    Adequate liquidity Adequately matched asset liability maturity profile* Liquidity Position as on March 31, 2019 As on March 31, 2019 Particulars Rs crore 90 12% -15% 78 Total debt maturities till September 30, 2019 43,620 80 70 66 - Of which commercial papers 5,500 Rs’000 crore © 2018 CRISIL Ltd. Al

  11. Slide 11: Expectation of strong support from majority shareholder, GoI

    Expectation of strong support from majority shareholder, GoI Shareholding pattern as of March 2019 Key role in implementing government’s policies for the power sector • Nodal agency for various government initiatives for power sector 5.6% • Key role in financing to SPUs, which form a key part of the

  12. Slide 12: To conclude – PFC's credit profile continues to be strong and stable

    To conclude – PFC’s credit profile continues to be strong and stable ● Strategic importance to and majority ownership by, Government of India ● PFC will continue to play a critical role in implementing government policies related to financing the Indian power sector © 2018 CRISIL Ltd. All rights res

  13. Slide 13: Thank you

    13 Thank you © 2018 CRISIL Ltd. All rights reserved.

  14. Slide 14: Disclaimer

    Disclaimer CRISIL has taken due care and caution in compilation of the data for this document. Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of any information on which this document is base

  15. Slide 15: About us

    About us About CRISIL Limited CRISIL is an agile and innovative, global analytics company driven by its mission of making markets function better. We are India’s foremost provider of ratings, data, research, analytics and solutions. A strong track record of growth, culture of innovation and global f

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