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Results
09-Nov-23
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Analysis
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Power Finance Corporation
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Loan growth accelerate to 19%
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Power Finance Corporation has reported 28% growth
in the net profit to Rs 3847.43 crore in the quarter ended September 2023
(Q2FY2024). Net Interest Income (NII) of the company declined 3% to Rs 3729 crore,
while the company has exhibited an improvement in asset quality in Q2FY2024.
The company has showed slight improvement in Net
Interest Margin (NIM) to 3.37% in Q2FY2024 from 3.34% in the preceding quarter.
The interest spreads of the company were steady on sequential basis at 2.51% in
Q2FY2024 from 2.51% in the preceding quarter, while declined from 2.76% in the
corresponding quarter last year.
Quarterly performance
The company has posted 12% increase in Income
from operations at Rs 10692.07 crore in the quarter ended September 2023. Other
income improved 101% to Rs 1096.42 crore. Total income increased 17% to Rs 11788.49
crore in the quarter ended September 2023. The interest expense surged 22% to
Rs 6963.14 crore.
The employee expenses increased 24% to Rs 63.39 crore,
while the other expenditures dipped 86% to Rs 71.75 crore in the quarter ended
September 2023. The ensuing Gross Profit stood at Rs 4690.21 crore in the
quarter ended September 2023, showing an increase of 23% on yoy basis.
The depreciation during the quarter under review
stood at Rs 3.94 crore down from Rs 4.09 crore in Q2FY2023.
The Profit before Tax increased 30% to Rs 4785.15
crore in the quarter ended September 2023. An effective tax rate was higher at 19.6%
in Q2FY2024 compared with 18.3% in Q2FY2023. PAT increased 28% to Rs 3847.43 crore
in Q2FY2024 over Q2FY2023.
Highlights:
Loan assets of the company increased 19% to Rs 449458
crore at end September 2023 compared to Rs 376696 crore at end September 2022. Within the loan book, the generation loan book moved up 7% to Rs 229421 crore, while transmission loan book
moved up 13% to Rs 32404 crore and distribution
jumped 37% to Rs 179311 crore at end September 2023.
As per the borrower segment wise classification, the private
sector loan book rose 32% to Rs 79381 crore, while the
government sector loan book jumped 17% to Rs 370077 crore
end September 2023.
Disbursement of the company (excluding R-APDRP) surged
91% to Rs 32770 crore in Q2FY2024 compared to Rs 17147 crore in Q2FY2023, as the distribution disbursements jumped 220% to Rs 22779 crore in Q2FY2024. However, the
generation disbursement declined 19% to Rs 7280 crore,
while transmission disbursements also fell 74% to
Rs 266 crore.
As per the borrower segment wise classification, the private
sector disbursements increased 14% to Rs 5952 crore,
while the government sector disbursements increased 125% to Rs 26818 crore in Q2FY2024.
Outstanding Borrowings increased by 19% to Rs 385694
crore at end September 2023, driven by bonds borrowing rising 20% to Rs 308582 crore
at end September 2023. Term loans moved up 13% to Rs 70295 crore, while
short-term loans jumped 84% to Rs 6817 crore at end September 2023.
NIM of the company declined 19 bps yoy to 3.37% in
Q2FY2024. The yield on assets eased 15 bps to 9.92%, while cost of funds rose 10
bps yoy to 7.41%.
The gross stage 3 asset declined to 3.67% end September 2023
from 3.82% a quarter ago, which entirely related to private sector exposure. Net
stage 3 asset also declined to 1.00% end September 2023 from 1.04% a quarter
ago.
Capital Adequacy Ratio stood at 24.86% at end
September 2023 compared to 24.29% a year earlier.
Book value of the company stood at Rs 225.58 per
share at end September 2023. Adjusted Book value (net of net stage 3 assets)
stood at Rs 212.01 per share at end September 2023.
Financial Performance H1FY2024
For the half year ended September 2023
(H1FY2024), Power Finance Corporation reported 13% increase in Income from
Operations at Rs 20816.15 crore, while interest expense increased 22% to Rs 13583.83
crore, leading to a 1% decline in NII to Rs 7232.32 crore. Other income
increased 71% to Rs 1114.52 crore. The Staff cost rose 16% to Rs 121.45 crore, while
the other expenditure was negative at Rs 141.65 crore. The ensuing Gross Profit
moved up 28% to Rs 8367.04 crore in H1FY2024. The Depreciation stood at Rs 7.58
crore, while provisions were written back amounting to Rs 96.73 crore in
H1FY2024. The profit before Tax jumped 36% to Rs 8456.19 crore
in H1FY2024. The Tax expense increased 45% to Rs 1601.82 crore. PAT improved 34%
to Rs 6854.37 crore in H1FY2024.
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Power Finance
Corporations: Standalone Results
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Particulars
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2309 (3)
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2209 (3)
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Var %
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2309 (6)
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2209 (6)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Income from operations
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10692.07
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9533.41
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12
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20816.15
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18462.43
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13
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36701.22
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36701.22
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0
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Other Income
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1096.42
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545.04
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101
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1114.52
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652.57
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71
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2964.41
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1889.95
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57
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Total Income
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11788.49
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10078.45
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17
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21930.67
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19115.00
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15
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39665.63
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38591.17
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3
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Interest Expenses
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6963.14
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5684.78
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22
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13583.83
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11146.36
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22
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23282.57
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22671.30
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3
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Other expenses
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135.14
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567.78
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-76
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-20.20
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1426.36
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LP
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2489.59
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1456.88
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71
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Gross profit
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4690.21
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3825.89
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23
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8367.04
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6542.28
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28
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13893.47
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14462.99
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-4
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Depreciation
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3.94
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4.09
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-4
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7.58
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8.87
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-15
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19.06
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13.20
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44
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Provisions
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-98.88
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151.83
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LP
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-96.73
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323.55
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LP
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-296.21
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2222.14
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LP
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Profit before tax
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4785.15
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3669.97
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30
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8456.19
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6209.86
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36
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14170.62
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12227.65
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16
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Provision for tax
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937.72
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671.22
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40
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1601.82
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1101.59
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45
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2565.15
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2205.75
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16
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Net profit
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3847.43
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2998.75
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28
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6854.37
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5108.27
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34
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11605.47
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10021.90
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16
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EPS*(Rs)
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46.6
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36.3
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41.5
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31.0
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35.2
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30.4
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Adj BV (Rs)
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212.0#
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219.4
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212.0#
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219.4
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241.3
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199.9
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* Annualized on current
equity of Rs 3300.1 crore. Face Value: Rs 10, figures in Rs Crore # adjusted book value post issue of bonus share 1:4.
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Source: Capitaline
Corporate Database
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