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Results
14-Feb-23
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Analysis
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Power Finance Corporation
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Loan growth rises to 6%, asset quality continues to improve
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Power Finance Corporation has reported 26% growth
in the net profit to Rs 3004.93 crore in the quarter ended December 2022
(Q3FY2023). Net Interest Income (NII) of the company fell 1% to Rs 3570 crore,
while the company has exhibited continuous improvement in asset quality in
Q3FY2023.
The company has showed decline in in Net
Interest Margin (NIM) to 3.45% in Q3FY2023 from 3.56% in the preceding quarter
and 3.70% in the corresponding quarter last year. The interest spreads of the
company eased to 2.60% in Q3FY2023 from 2.76% in the preceding quarter and 3.03%
in the corresponding quarter last year.
Quarterly performance
The company has posted 3% increase in Income
from operations at Rs 9566.20 crore in the quarter ended December 2022. Other
income improved 139% to Rs 798.20 crore. Total income increased 8% to Rs 10364.40
crore in the quarter ended December 2022. The interest expense increased 5% to
Rs 5995.50 crore.
The employee expenses moved up 10% to Rs 61.16 crore,
while the other expenditures zoomed 1968% to Rs 748.74 crore in the quarter
ended December 2022. The ensuing Gross Profit stood at Rs 3559.00 crore in the
quarter ended December 2022, showing a dip of 8% on yoy basis.
The depreciation during the quarter under review
stood at Rs 5.01 crore up from Rs 3.96 crore in Q3FY2022. The company has
reversed provisions amounting to Rs 125.56 crore in Q3FY2023 against provision
charge of Rs 963.58 crore in Q3FY2022.
The Profit before Tax jumped 28% to Rs 3679.55 crore
in the quarter ended December 2022. An effective tax rate was higher at 18.3% in
Q3FY2023 compared with 17.5% in Q3FY2022. PAT increased 26% to Rs 3004.93 crore
in Q3FY2023 over Q3FY2022.
Highlights:
Loan assets of the company increased 6% to Rs 393387
crore at end December 2022 compared to Rs 371649 crore at end December 2021. Within the loan book, the generation loan book declined 1% to Rs 216611 crore, while transmission loan book fell
1% to Rs 28765 crore. The distribution loan
book has jumped 19% to Rs 145004 crore at end
December 2022.
As per the borrower segment wise classification, the private
sector loan book declined 1% to Rs 60997 crore, while
the government sector loan book moved up 7% to
Rs 332390 crore end December 2022.
Disbursement of the company surged 177% to Rs 25178
crore in Q3FY2023 compared to Rs 9097 crore in Q3FY2022, as the generation disbursement moved up 104% to Rs 7227 crore and the distribution disbursements
jumped 350% to Rs 16392 crore in Q3FY2023. However,
the transmission disbursements fell 51% to Rs 756
crore.
As per the borrower segment wise classification, the private
sector disbursements increased 51% to Rs 2879 crore,
while the government sector disbursements jumped 210% to Rs 22299 crore in Q3FY2023.
Outstanding Borrowings increased 6% to Rs 342045
crore at end December 2022, driven by bonds borrowing rising 5% to Rs 271112 crore
at end December 2022. Term loans increased 4% to Rs 67122 crore, while
short-term loans jumped to Rs 3811 crore at end December 2022.
NIM of the company declined 25 bps yoy to 3.45% in
Q3FY2023. The yield on assets eased 11 bps to 10.10%, while cost of funds increased
32 bps yoy to 7.50%.
The gross stage 3 asset declined to 4.21% end December 2022
from 4.75% a quarter ago, which entirely related to private sector exposure. Net
stage 3 asset also declined to 1.19% end December 2022 from 1.31% a quarter
ago.
Capital Adequacy Ratio stood at 24.41% at end
December 2022 compared to 22.68% a year earlier.
Book
value of the company stood at
Rs 247.30 per share at end December 2022. Adjusted Book value (net of net stage
3 assets) stood at Rs 229.58 per share at end December 2022.
Financial Performance 9MFY2023
For nine months ended December 2022 (9MFY2023),
Power Finance Corporation reported 1% increase in income from operations at Rs 28028.63
crore, while interest expenses were flat at Rs 17141.86 crore, leading to a 2% rise
in NII to Rs 10886.77 crore. Other income increased 52% to Rs 1450.77 crore. The
Staff cost rose 6% to Rs 165.98 crore, while the other expenditure jumped 275% to
Rs 2070.28 crore. The ensuing Gross Profit declined 7% to Rs 10101.28 crore in
9MFY2023. The Depreciation stood at Rs 13.88 crore, while provisions dipped 89%
to Rs 197.99 crore in 9MFY2023. The profit before Tax rose 10% to Rs 9889.41 crore
in 9MFY2023. The Tax expense increased 10% to Rs 1776.21 crore. PAT improved 9%
to Rs 8113.20 crore in 9MFY2023.
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Power Finance
Corporations: Standalone Results
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Particulars
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2212 (3)
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2112 (3)
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Var %
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2212 (9)
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2112 (9)
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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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9566.20
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9296.90
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3
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28028.63
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27763.19
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1
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36701.22
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36145.76
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2
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Other Income
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798.20
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334.60
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139
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1450.77
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953.58
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52
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1889.95
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1620.81
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17
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Total Income
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10364.40
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9631.50
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8
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29479.40
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28716.77
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3
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38591.17
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37766.57
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2
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Interest Expenses
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5995.50
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5687.52
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5
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17141.86
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17099.24
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0
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22671.30
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23194.49
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-2
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Other expenses
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809.90
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91.84
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782
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2236.26
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709.22
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215
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1456.88
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857.20
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70
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Gross profit
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3559.00
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3852.14
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-8
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10101.28
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10908.31
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-7
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14462.99
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13714.88
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5
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Depreciation
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5.01
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3.96
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27
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13.88
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10.35
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34
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13.20
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11.17
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18
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Provisions
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-125.56
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963.58
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LP
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197.99
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1870.39
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-89
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2222.14
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3496.40
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-36
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Profit before tax
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3679.55
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2884.60
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28
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9889.41
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9027.57
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10
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12227.65
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10207.31
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20
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Provision for tax
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674.62
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504.39
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34
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1776.21
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1615.12
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10
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2205.75
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1763.30
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25
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Net profit
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3004.93
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2380.21
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26
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8113.20
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7412.45
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9
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10021.90
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8444.01
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19
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EPS*(Rs)
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45.5
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36.1
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41.0
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37.4
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38.0
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32.0
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Adj BV (Rs)
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229.6
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193.4
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229.6
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193.4
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199.9
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169.2
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* Annualized on
current equity of Rs 2640.08 crore. Face Value: Rs 10, figures in Rs Crore, PL: Profit to Loss, LP: Loss to Profit
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Source: Capitaline
Corporate Database
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