Capitaline

Analyst Meet / AGM 16-May-18

Conference Call

PTC India Financial Services

Expects to continue to maintain growth momentum

PTC India Financial Services (PFS) conducted a conference call on 14 May 2018 to discuss the financial results of the company for the quarter ended March 2018. Dr. Ashok Haldia, MD&CEO addressed the call:
Highlights:

The company has continued to post above 20% growth in loan portfolio, with healthy NII. However profitability impacted due to legacy stress assets. The loan portfolio of the company has increased 21% on yoy basis to Rs 12816 crore. The total portfolio exceeds Rs14300 crore, including non fund based portfolio. The company expects to continue to maintain growth momentum and grow loan book at 25-30% in FY2019.
The company continues to focus on increasing financing to newer areas of infrastructure and further expects to increase lending through high yielding structured products with positive impact on portfolio and profitability.
The profits of the company however turned negative during the quarter due to impact of stress assets in thermal and hydro sector.
As per the company many projects are in advanced stage of resolution. The company had expected to resolution of 3-4 assets by end FY2018, but now expects resolution of these assets in Q1 or Q2FY2019.
The company does not witness any major stress in its wind and solar power portfolio. Excluding thermal and hydro, the GNPA ratio stands at below 1% end March 2018. About 40-50% of the thermal power exposure is under stress.
Net Interest Margin (NIM) and Spread stood at 3.13% and 1.18% respectively for Q4 FY2018.Yield on loan assets stood at 9.47% in Q4 FY2018, whereas cost of borrowed funds stood at 8.29% during Q4 FY2018.
Adjusted for the impact of stressed loan assets, yield and spread for Q4 FY2018 stood at 10.50% and 2.21% respectively compared to yield and spread of 11.22% and 2.76% during Q4FY2017 respectively.
The company has made provision of Rs 121 crore for diminution in value of equity investments and additional provision of Rs 229 crore on loans in FY2018.
01The gross NPAs stood at Rs 838 crore end March 2018 up from Rs 585 crore end March 2017, while net NPA rose to 519.27 crore end March 2018 from Rs 393.51 crore end March 2017. The company expects to substantially reduce the gap between GNPA and NNPA in FY2019.
The cumulative effective debt sanction amounted to Rs 33104 crore whereas 01outstanding cumulative effective debt sanctioned stood at Rs 23827 crore.
The debt sanction during the year aggregated to Rs 8250 crore comprising mainly of Rs 4840 crore to renewable projects and Rs 3410 crore to other areas such as transmission, distribution, road etc. The debt sanction during the previous year aggregated to Rs 10297 crore.
The debt disbursements aggregated to Rs 5103 crore in FY2018, compared to Rs 4179 crore in FY2017.

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