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• Sender: Manish Kumar Agarwal, Company Secretary • Subject: Availability of Earnings Call Transcript • Earnings call date: August 6, 2024 • Participants: Analysts and investors • Compliance: Follows SEBI regulations • Previous Correspondence: Letters dated August 1 and August 6, 2024 • Transcript Access: • Attached to the communication • Available online • Date of Letter: August 12, 2024 • Contact Information: Provided for further inquiries
Investor Meet Overview • Date: May 15, 2024 • Purpose: Discuss FY2024 financial results and strengthen investor relationships. • Key Participants: Ms. Parminder Chopra (Chairman and Managing Director) and other directors. • Presentation: India's energy transition outlook by USAID, highlighting PFC's ESG partnership. • Documentation: Transcript available on PFC's website and submitted to stock exchanges.
Financial Performance Highlights • Consolidated Profit After Tax (PAT): ₹26,461 crores (25% increase YoY). • Standalone Profit: ₹14,367 crores (24% increase YoY). • Balance Sheet: Consolidated total of ₹10.40 lakh crore. • Net NPA Ratio: Improved to 0.85% from 1.03% in FY2023. • Dividend Proposal: Final dividend of ₹2.50 per share, total of ₹13.50 for FY2024.
Risk Management and Loan Growth • Risk Management: Diversified funding approach and strong capital adequacy ratio of 25%. • NPA Levels: No new NPAs added in over a year; key projects under resolution. • Loan Book Growth: Increased by 14%, with a 25% rise in renewable energy disbursements.
Strategic Focus • Growth Strategy: Emphasis on "3R" principles: Realistic, Resilient, Robust. • Sectors of Focus: Energy transition, conventional generation, and infrastructure. • Power Distribution Improvements: Reduced AT&C losses and enhanced billing efficiency.
Regulatory and Operational Insights • RBI Regulations: Clarification on DISCOM loans and project finance classifications. • Operational Costs: Minimal due to a lean organization; focus on reducing high-cost debt. • Provisioning Policy: Increased provisioning for stage one assets to strengthen the asset book.
Renewable Energy Sector Discussion • Growth Potential: Loan growth guidance of 12-15% with a conservative approach. • Challenges: Scaling renewable energy capacity and developing energy storage solutions. • Investment Opportunities: Significant projected investments in renewable energy, electric mobility, and green hydrogen.
Green Hydrogen Insights • Current Costs: Green hydrogen priced between USD 4 to 5 per kg; target to reduce below USD 2. • Export Competitiveness: India’s advantages include abundant land and low renewable energy tariffs. • Collaboration: Ongoing efforts with U.S. entities on battery storage technologies.
Conclusion • Commitment: PFC remains dedicated to supporting India's energy transition and infrastructure development. • Engagement: The session concluded with appreciation for participant involvement and discussion on future opportunities.
Power Finance Corporation Earnings Conference Call Summary
Conference Call Details • Date: February 8, 2024 • Submission Date: February 14, 2024 • Moderator: Shweta Daptardar, Elara Securities • Key Speaker: Ms. Parminder Chopra, Chairman and Managing Director • Transcript Availability: Publicly accessible on the company's website
Key Announcements • New Subsidiary: • RBI approval for a wholly owned subsidiary in IFSC Gift City, Gujarat. • First government NBFC to enter this global financial hub. • Aims to enhance international lending capabilities and global brand presence.
Financial Performance • Q3 and Nine-Month FY2024 Results: • Consolidated Profit After Tax (PAT): Rs. 18,900 Crores (26% YoY increase). • Loan Asset Book Growth: 19% to Rs. 9,54,483 Crores. • Net NPA Ratio: Improved to 0.86%. • Standalone Profits: Rs. 10,232 Crores (26% increase). • Interim Dividend: Rs. 3.5 per share, totaling Rs. 8 per share for FY2024.
Disbursements and Growth Opportunities • Total Disbursements: Rs. 79,000 Crores, driven by government schemes in distribution and renewable energy. • Future Growth Potential: • Pradhan Mantri Suryoday Yojana for 40 gigawatts of solar rooftops. • Continued success of the Late Payment Surcharge scheme for DISCOMs.
Regulatory Events • RBI Penalty: • Rs. 8.80 lakh for non-compliance with liquidity risk management provisions. • Clarification that it does not reflect overall liquidity position.
• Credit Concentration Norms: • Government NBFCs like PFC now under new credit concentration norms. • PFC has effectively managed credit concentration and aligns with RBI guidelines.
Q&A Highlights • Disbursals Under LPS Scheme: • Slower disbursals due to installment options; expected to slow down as the scheme matures.
• Lanco Amarkantak Resolution: • Fresh bids being evaluated; ongoing discussions about other assets in resolution.
• Sanctions and Provisions: • Total sanctions for FY2024: Rs. 144,000 Crores. • Provision cover for Lanco: Approximately 50%.
Growth Expectations • Projected Growth Rate: • Targeting 12% to 15% growth for the upcoming year. • Acknowledgment of challenges in thermal sector capacity additions.
• Funding Strategy: • Adjusted lending rates in response to increased costs of funds. • Maintaining a net interest margin (NIM) of approximately 3.5%.
Renewable Energy Focus • Current Renewable Portfolio: Approximately 12%, with a target of 20% in the next 2-3 years. • Infrastructure Development: • Enhancing employee capabilities through training and external expertise. • Stable market share in the power sector at around 20-25%.
Conclusion • Outlook: • Positive growth prospects despite competitive pressures. • Commitment to supporting the power sector's growth and maintaining a strong financial position.
Submission of Earnings Call Transcript
• Date of Submission: November 14, 2023 • Submitted By: Manish Kumar Agarwal, General Manager and Company Secretary • Company: Power Finance Corporation Ltd. • Earnings Call Date: November 9, 2023 • Regulatory Compliance: • Submitted to National Stock Exchange of India and BSE Limited • Compliance with SEBI regulations • Purpose: • Record-keeping • Dissemination of information • Company's Commitment: Emphasizes transparency and regulatory adherence.
Summary of Notice Issued by Power Finance Corporation Ltd.
• Date of Notice: June 2, 2023 • Issued by: Manish Kumar Agarwal, General Manager and Company Secretary • Recipient: Bombay Stock Exchange and National Stock Exchange of India • Content of Notice: • Transcript of an investor conference call • Date of Conference Call: May 29, 2023 • Discussion Topics: • Company's performance for the quarter • Financial year ending March 31, 2023 • Availability: Audio recording and transcript accessible on the company's website.