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Key Financial Highlights • Disbursements: ₹566 crores, increasing portfolio to ₹5,577 crores. • Total Income: ₹161 crores. • Profit Before Tax: ₹59 crores, up from ₹19 crores in the previous quarter. • ECL Provisions: Reduction contributed to profitability. • Debt-to-Equity Ratio: Improved from 1.54x to 1.4x. • Earnings Per Share: ₹0.69.
Performance Overview • Assets Under Management (AUM): Stabilized with slight increase expected. • Non-Performing Assets (NPA): No new slippages; minor decline in gross Stage 3 assets. • Credit Rating: Recent downgrade acknowledged, but optimism for recovery expressed.
Strategic Plans • Operational Stability: Focus on enhancing employee engagement and diversifying portfolio. • Sector Focus: Emphasis on renewable energy and smaller infrastructure projects. • Funding Sources: Need to broaden beyond banks and resolve stressed assets.
Management Insights • Workforce Engagement: Importance of leveraging human resources highlighted. • Stakeholder Trust: Rebuilding trust with regulators and rating agencies prioritized. • Growth Strategy: Still in development; governance improvements needed.
Stakeholder Engagement • Debt-to-Equity Level: Currently at 1.4x, acceptable for additional business. • Disbursement Guidance: No specific guidance provided. • NPA Resolution: Complex legal processes; 20-30% of stressed assets expected to resolve by March '25. • Project Preferences: Smaller projects preferred to manage risk; no single disbursement to exceed 5% of AUM.
Market Outlook • Infrastructure Focus: Targeting larger projects while addressing credit shortages with smaller disbursements. • Government Investment: ₹11 lakh crores in infrastructure indicates favorable long-term outlook. • Growth Timeline: Potential turnaround achievable within 18 to 24 months.
Conclusion • Confidence in Growth: R Balaji expressed readiness to move past challenges and focus on future opportunities, thanking participants for their interest.
Conference Call Details • Date: June 5, 2024 • Transcript submitted on: June 11, 2024 • Key Management Present: • CA Mahendra Lodha (CFO and CEO) • Abhinav Goyal (Treasury Head) • Sanjay Rustagi (Finance Head)
Financial Highlights for FY2024 • Total Revenue: ₹776.28 crores • Profit After Tax (PAT): ₹160.75 crores • Capital Adequacy Ratio: 43.07% • Net Interest Margin (NIM): 4.82% • Debt-to-Equity Ratio: Improved to 1.54 times • Non-Performing Assets (NPAs) resolution discussed
Loan Sanctions and Liquidity • Total Loan Sanctions: ₹525 crores • Total Disbursements: ₹585 crores • Surplus Cash: ₹1,324 crores as of April 2024 • Long-term loan secured from Indian Overseas Bank
Management Insights • Decline in corporate loan contributions attributed to prepayments • Target debt-to-equity ratio: Over three in the near future • Optimism about sector performance and growth in renewable segment • Slight reduction in NIM expected due to market conditions, but overall profitability may increase
Fundraising and Future Plans • Fundraising target for FY2024: ₹1,000 to ₹2,000 crores • Ongoing process to appoint a new CEO • Management aims to enhance loan book significantly
Growth Guidance and Sector Concerns • Efforts to improve performance across all areas for FY25 • Concerns raised about decline in transmission contributions, attributed to a shift to the INVIT model • Advanced process for appointing a new Managing Director, announcement pending regulatory compliance
Conclusion • Call concluded with gratitude to investors for their participation.
Conference Call Overview • Date: February 1, 2024 • Transcript submitted on: February 7, 2024 • Key Management: Mahendra Lodha (Director and CFO), S. Siva Kumar (Executive Director)
Financial Performance • Profit Before Tax (PBT): Rs. 67.48 crores • Profit After Tax (PAT): Rs. 50.37 crores • Yield on earning portfolio: 11.37% • Capital adequacy ratio: 44.45% • Liquid funds: Rs. 872 crores
Future Growth Opportunities • Focus on renewable energy sector due to government initiatives • Ongoing efforts to resolve stressed assets
Q&A Session Highlights • Manoj Alimchandani's Comments: • Importance of in-person interactions • Competitors' success in renewable energy • Inquiry about RBI relationship
• Abhinav Goyal's Responses: • Acknowledged potential in solar and green infrastructure • Confirmed RBI inspection completed without issues
• Investor Concerns: • Aditya Singh questioned focus on renewable energy vs. road projects • Criticism of dual role of CFO as CEO
Funding Strategy and NPA Management • Emphasis on dual focus: sustainable green infrastructure and other profitable opportunities • Commitment to transparency in loan accounts and NPA figures • Strengthened credit appraisal process in response to feedback
Project Updates • Danu Wind Power facing external challenges but operational • Stressed projects being actively worked on for resolution • Cash flows from partially operational projects being utilized for interest dues
Future Plans and Leadership • Plans to raise Rs. 1,000 crores in business proposals • Progress in resolving NPAs, with two resolved in the current quarter • Search for a new CEO ongoing, with expectations for an announcement soon • Commitment to technological advancements and board competence
Conclusion • Management expressed confidence in achieving future loan book targets and enhancing stakeholder value, particularly in green infrastructure.
Key Financial Highlights • Total Income: INR 201.81 crores (increase from previous quarter and last year) • Profit Before Tax: INR 79.99 crores • Profit After Tax: INR 59.77 crores • Improved Ratios: Yield on earnings and net interest margin
Non-Performing Assets (NPAs) • Resolved two NPAs; addressing two more • Expected recoveries: • INR 70 crore from IL&FS • INR 55-60 crore from Meenakshi
Portfolio Diversification • Response to decreasing contribution from State Power Utilities • Focus on project loans in sectors like: • Electric vehicle (EV) charging • Hybrid annuity roads • Renewables
Fundraising Efforts • Plans to raise INR 2,000 to 2,500 crore • Ongoing discussions with banks
Management and Profitability • Most senior positions filled • Optimism for continued profitability growth • Current book value: INR 7,150 crore • Market cap: INR 1,750 crore
Future Growth Strategy • Emphasis on sustainable infrastructure and carbon emission reduction • Roadmap to increase loan book from INR 7,500 crores to INR 25,000-30,000 crores in 3-4 years • Focus on improving asset quality and capital adequacy • Confidence in strategies to enhance shareholder value and financial performance
Conference Call Overview • Date: August 1, 2023 • Transcript submitted on August 8, 2023 • Key Executives: Mahendra Lodha (MD & CEO), Abhinav Goyal, S. Siva Kumar
Financial Highlights • Profit After Tax (PAT): Rs. 36.77 crore for Q1 FY24 • Capital Adequacy Ratio: 34.90% • Net Interest Margin: 4.33% • Loan Book: Rs. 7,453 crores
Fundraising and Liquidity • Current cash flow: Comfortable liquidity position • Fundraising target: Rs. 1,500 crores to Rs. 2,000 crores in the next three months • Ongoing discussions for lines of credit and external commercial borrowings (ECB) • $50 million sanction from IIFC UK
Management Strategies • Exploring co-lending opportunities in infrastructure sectors • Targeting Asset Under Management (AUM): Rs. 9,000 crores by financial year-end • Maintaining a comfortable debt-to-equity ratio • Aiming for Return on Assets (ROA): 1.5% to 2%
Borrowing Costs and Loan Recoveries • Current borrowing cost: 8.35%, competitive among NBFCs • Plans to pass future borrowing cost increases to borrowers • Expected resolution of Rs. 400 crores in assets, including recoveries from Danu Wind Park • Adequate provisions in place for recoveries, with no additional provisioning anticipated post-restructuring
Conclusion • Management expresses cautious optimism about future growth and funding prospects • Call concluded with gratitude from Mahendra Lodha for participant engagement.
Meeting Overview • Date: May 22, 2023 • Focus: Financial results for Q4FY2023 and FY2023 • Key Participants: • Dr. Pawan Singh (MD & CEO) • Mr. S. Siva Kumar (Executive Director) • Mr. Sanjay Rustagi (CFO)
Financial Highlights • Loan Sanctions: Rs. 3,854 crores • Debt/Equity Ratio: 2.09x • Capital Adequacy Ratio: 33.05% • First-time Dividend: 10%
Management Outlook • Commitment to green infrastructure financing • Aim to reduce thermal assets to zero by year-end • Positive project pipeline in renewable energy and smart city initiatives
Financial Position (as of March 31, 2023) • Improvements in profit, return on equity, and net interest margin (NIM) • Decrease in loan disbursement due to board restrictions • Net NPAs reduced from Rs. 387 crores to Rs. 306 crores
CSR Initiatives • Focus on environmental sustainability and community upliftment • Investments in renewable energy, e-mobility, and water treatment
Financial Outlook for FY24 • Target: Rs. 6,000 crores in sanctions and Rs. 5,000 crores in disbursements • Positive project pipeline of Rs. 4,500 crores • Reliance on PSU banks and global institutions for funding
Concerns and Clarifications • Ongoing SEBI and MCA notices from 2018 clarified as having no financial implications • Provisions made for non-performing assets (NPAs) based on expected realizations
Closing Remarks • Dr. Pawan Singh expressed gratitude for shareholder support • Emphasis on crisis management and commitment to growth • Invitation for informal interaction post-call
Submission of Transcripts • Date: February 13, 2023 • Compliance with SEBI regulations • Transcripts available on the company's website • Signed by Shweta Agrawal, Company Secretary
Analyst Call Highlights • Introduction by Abhinav Goyal • Management team introduced • Recovery from uncertainties in FY2022 • Moved out of "Z" category • Key financial metrics shared: • Rs. 2,300 crores in sanctions (first nine months of 2023) • Capital adequacy ratio: 33% • Net interest margin: 4.19% • Focus on sustainable green infrastructure financing
Financial Overview by CFO Sanjay Rustagi • Adequate liquidity with cash reserves of Rs. 740 crores • Loan sanctions for the quarter: Rs. 1,131 crores • Cumulative disbursements: Rs. 1,670 crores • Profit before tax: Rs. 186 crores; profit after tax: Rs. 139 crores
Operational Performance by Vijay Singh Bisht • Shift towards renewable energy and infrastructure • Net NPA level: Rs. 218 crores (lowest in years) • Ongoing recovery efforts for stressed assets
Current Financial Situation • Rs. 2,400 crores in Trust and Retention Account (TRA) under NCLT restrictions • Reduction in receivables; Rs. 52 crores received from late payment surcharge • Optimism about future resolutions and liquidity
Future Outlook by Dr. Pawan Singh • Target for sanctions: Rs. 2,500 crores; disbursements: Rs. 2,200-Rs. 2,300 crores • Improved credit cost management; net NPAs around Rs. 200 crores • Focus on last-mile connectivity and green initiatives
Management Strengthening • Recruitment of senior executives to enhance capabilities • Support from board and promoters for expansion • Development of a business plan for the next 3-5 years
Q&A Session Highlights • Disbursement projections for FY24: Rs. 6,000 crores in sanctions, Rs. 5,500 crores in disbursements • Concerns about past disbursement declines addressed • Ongoing litigation and conservative financial management discussed
Conclusion • Acknowledgment of past challenges and optimism for future performance • Invitation for further inquiries and stakeholder engagement