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Results
12-Aug-22
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Analysis
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Power Finance Corporation
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Stable margins and asset quality, disbursements dip 59% in Q1FY2023
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Power Finance Corporation has reported 7% decline
in the net profit to Rs 2109.52 crore in the quarter ended June 2022
(Q1FY2023). Net Interest Income (NII) of the company has eased 2% to Rs 3467 crore.
The company has showed improvement in Net Interest Margin (NIM) to 3.69% in
Q1FY2023 from 3.55% in the preceding quarter, while notched down 3.70% in the
corresponding quarter last year. The interest spreads of the company improved
to 2.93% in Q1FY2023 from 2.85% in the preceding quarter and eased from 2.96% in
the corresponding quarter last year. The company has exhibited improvement in
asset quality in Q1FY2023.
Quarterly performance
The company has posted 4% decline in income from
operations at Rs 8938.03 crore in the quarter ended June 2022. Other income
improved 58% to Rs 98.52 crore. Total income dipped 3% to Rs 9036.55 crore in
the quarter ended June 2022. The interest expense fell 5% to Rs 5461.58 crore.
The employee expenses increased 11% to Rs 53.71 crore,
while the other expenditures also jumped 147% to Rs 804.87 crore in the quarter
ended June 2022.
The ensuing Gross Profit stood at Rs 2716.39 crore
in the quarter ended June 2022, showing a decline of 15% on yoy basis.
The depreciation during the quarter under review
stood at Rs 4.78 crore up from Rs 2.80 crore in Q1FY2022.
The Profit before Tax declined 8% to Rs 2539.89 crore
in the quarter ended June 2022. An effective tax rate was lower at 16.9% in
Q1FY2023 compared with 17.6% in Q1FY2022. PAT declined 7% to Rs 2109.52 crore
in Q1FY2023 over Q1FY2022.
Highlights:
Loan assets of the company rose slightly to Rs 370186
crore at end June 2022 compared to Rs 369983 crore at end June 2021. Within the loan book, the generation loan book declined 7% to Rs 210924 crore, while transmission loan book
moved up 7% to Rs 30416 crore and distribution
jumped 12% to Rs 126615 crore at end June 2022.
As per the borrower segment wise classification, the private
sector loan book fell 4% to Rs 58444 crore, while the
government sector loan book jumped 1% to Rs 311742 crore
end June 2022.
Disbursement of the company (excluding R-APDRP)
declined 59% to Rs 4643 crore in Q1FY2023 compared to Rs 11332 crore in
Q1FY2022, as the generation disbursement declined
54% to Rs 2942 crore, while transmission
disbursements also fell 18% to Rs 417 crore. Further,
the distribution disbursements also dipped 74% to
Rs 1163 crore in Q1FY2023.
As per the borrower segment wise classification, the private
sector disbursements declined 46% to Rs 1665 crore,
while the government sector disbursements also fell 64% to Rs 2978 crore in Q1FY2023.
Outstanding Borrowings declined by 3% to Rs 314471
crore at end June 2022, driven by bonds borrowing easing 2% to Rs 250576 crore
at end June 2022. Term loans were flat at Rs 63319 crore, while short-term
loans dipped 81% to Rs 576 crore at end June 2022.
NIM of the company declined 1 bps yoy to 3.69% in
Q1FY2023. The yield on assets eased 38 bps to 10.01%, while cost of funds
dipped 35 bps yoy to 7.08%.
The gross stage 3 asset rose to 5.65% end June 2022 from 5.61%
a quarter ago, which entirely related to private sector exposure. Net stage 3
asset also declined to 1.73% end June 2022 from 1.76% a quarter ago.
Capital Adequacy Ratio stood at 24.33% at end
June 2022 compared to 21.16% a year earlier.
Book
value of the company stood at
Rs 231.28 per share at end June 2022. Adjusted Book value (net of net stage 3
assets) stood at Rs 207.01 per share at end June 2022.
Financial Performance FY2022
For year ended March 2022 (FY2022), Power
Finance Corporation reported 2% increase in Income from Operations at Rs 36701.22
crore, while interest expense declined 2% to Rs 22671.30 crore, leading to a 8%
rise in NII to Rs 14029.92 crore. Other income increased 17% to Rs 1889.95 crore.
The Staff cost rose 10% to Rs 213.11 crore, while the other expenditure jumped 88%
to Rs 1243.77 crore. The ensuing Gross Profit moved up 5% to Rs 14462.99 crore
in FY2022. The Depreciation stood at Rs 13.20 crore, while provisions dipped 36%
to Rs 2222.14 crore in FY2022. The profit before Tax to increased 20% to Rs 12227.65
crore in FY2022. The Tax expense increased 25% to Rs 2205.75 crore. PAT improved
19% to Rs 10021.90 crore in FY2022.
Power Finance
Corporations: Standalone Results
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Particulars
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2206 (3)
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2106 (3)
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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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8938.03
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9263.89
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-4
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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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98.52
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62.16
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58
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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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9036.55
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9326.05
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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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5461.58
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5739.31
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-5
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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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858.58
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373.86
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130
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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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2716.39
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3212.88
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-15
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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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4.78
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2.80
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71
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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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171.72
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450.54
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-62
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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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2539.89
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2759.54
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-8
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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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430.37
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485.95
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-11
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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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2109.52
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2273.59
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-7
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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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32.0
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34.4
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38.0
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32.0
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Adj BV (Rs)
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207.0
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179.3
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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
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Source: Capitaline
Corporate Database
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