PTC India Financial Services Limited Corporate Presentation
This presentation and the accompanying slides (the Presentation ), which have been prepared by PTC India Financial Services Limited (the Company ), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to: the performance of the Indian economy and of the economies of various international markets, the performance of the power industry in India and world-wide, competition, the company s ability to successfully implement its strategy, the Company s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company s market preferences and its exposure to market risks, as well as other risks. The Company s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. 2
Background & Business
Goldman Sachs and Macquarie acquire stake in PFS PFS completes Initial Public Offer (IPO), ECBs from DEG and IFC 2006 PFS incorporated as a subsidiary of PTC India Limited PFS classified as Infrastructure Finance Company by RBI PFS becomes the first institution in India, to sign IFC s Master Cooperation Agreement Lends and invests primarily in private power projects Robust track record on equity investments Offers unique structured & innovative products Efficient capital utilisation to aid scale up 4
PTC India Financial Services Limited To provide Investment and Financing for Power and Related Infrastructure Debt Financing Equity Financing For Greenfield and Brownfield Projects Providing Capital for Expansion activities Structured Products Investing in projects across energy value chain Fee Based Services Underwriting, Loan Syndication, Advisory 5
Board of Directors
Name Mr. Deepak Amitabh Chairman Dr. Ashok Haldia - Managing Director & CEO Dr. Pawan Singh - Whole-time Director (Finance) & CFO Mr. R. Nagarajan Mr. Ajit Kumar Brief Profile CMD of PTC India Ltd and a former member of Civil Services Whole-time Director of PFS since 2008. Former Secretary, ICAI and Technical Advisor on Board of International Federations of Accountants. Has wide experience in power sector, reforms and restructuring, policy and financing of power projects and public sector management and reforms, participative banking, corporate law and governance, formulation of accounting & auditing standards, WTO-GATS Former member of Civil Services. Former Director (Finance) of Delhi Power Company Ltd, Delhi Transco Ltd etc. Has worked in various infrastructure sector companies like Powergrid, Indian Railways, Tata Steel. Present Director (Finance) of Power Finance Corporation Ltd Director (Commercial & Operations) of PTC India Limited. Former Executive Director of NTPC Limited. Mrs. Pravin Tripathi Mrs. Tripathi is from IA&AS of 1973 Batch (retired) and has worked at various senior positions in Govt. of India. She has served as member - Competition Appellate Tribunal, Member - Airport Economic Regulatory Authority Appellate Tribunal and as Deputy Comptroller & Auditor General of India Mr. S. K. Tuteja Mr. S. S. Kohli Mr. Ved Kumar Jain IAS (Retd), former Secretary to Govt. of India. Experienced in diverse fields which include District Administration, Education, Industry, Trade, Commerce, Finance and company matters. Currently holds Directorship in various companies. Former CMD IIFCL, PNB, SIDBI and Punjab and Sind Bank, now holds Directorship in various companies A known authority in Direct Taxes, was on Board of Governors of Indian Institute of Corporate Affairs, served as the President of The Institute of Chartered Accountants of India. Now holds Directorship in various companies. 7
Financial Highlights Q4 & FY2016
Rs. crores Rs. crores Rs. crores percent 9,000 Loan Assets 8,634 100 Trend in borrowings 7,500 6,000 4,500 4,974 6,379 80 60 40 20 3,000 1,500-2,296 680 1,270 2011 2012 2013 2014 2015 2016 Interest Income - 2011 2012 2013 2014 2015 2016 Loans - Banks ECBs Commercial Papers Loans - FIs Bonds / Debentures 1,000 900 800 700 600 500 400 300 200 100-921 742 420 251 133 74 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 600 500 400 300 200 100 - FY 2011 FY 2012 Trend in Profit FY 2013 FY 2014 FY 2015 FY 2016 600 500 400 300 200 100-9
Qtr ended 31 st Mar 2016 Qtr ended 31 st Mar 2015 Particulars Year ended 31 st Mar 2016 Year ended 31 st Mar 2015 2,131 550 Loan Sanctioned (Rs. Crs) 6,528 4,112 1,450 835 Loan Disbursed (Rs. Crs) 3,555 2,493 8,634 6,379 Loan Assets (Rs. Crs) 8,634 6,379 12.82 13.46 Yield on Loan Assets (%) 13.07 13.71 8.95 9.30 Cost of borrowed funds (%) 9.05 9.38 3.88 4.15 Interest Spread (%) 4.02 4.33 5.76 6.03 Net Interest Margin (%) 5.98 6.30 0.87 0.28 Earnings Per Share (Rs.) 6.96 2.86 7.41 7.27 Cost to Income Ratio (%) 6.71 6.62 21.82 23.71 Capital Adequacy Ratio (%) 21.82 23.71 3.93 3.56 Debt Equity Ratio (%) 3.93 3.56 11.22 4.39 Return on Networth (%) 24.60 11.55 0.56 0.23 Return on Assets (%) 4.43 2.38 10
11 Qtr ended 31 st Mar 2016 Qtr ended 31 st Mar 2015 Shift % Particulars (Rs. Crores) Year ended 31 st Mar 2016 Year ended 31 st Mar 2015 256.01 200.81 27 Interest Income 921.41 741.61 24 - - - Profit on sale of equity investments 206.93 - - 13.97 16.44 (15) Other Operating Income 58.58 60.27 (3) 269.98 217.25 24 Total Income 1,186.91 801.89 48 141.20 111.05 27 Interest and financial charges 507.24 400.93 27 5.57 3.49 59 Loss on foreign currency translation 22.87 16.26 41 43.54 65.20 (33) Provisions 95.19 113.93 (16) 9.13 7.47 22 Other operating expenses 30.19 25.47 19 199.44 187.21 7 Total expenses 655.49 556.59 18 70.54 30.03 135 Profit from operation (before other income) 531.43 245.29 117 0.00 0.00 (10) Other Income 0.01 0.02 (28) 70.55 30.04 135 Profit before tax 531.44 245.31 117 21.51 14.23 51 Tax expense (including deferred tax) 140.35 84.44 66 49.03 15.81 210 Profit after tax 391.10 160.88 143 Shift %
Equity and Liabilities (Rs. in Crores) As at 31 st March 2016 As at 31 st March 2015 Assets (Rs. in Crores) As at 31 st March 2016 As at 31 st March 2015 Shareholders funds Share capital 562.08 562.08 Reserves and surplus 1,180.45 875.09 Non-current liabilities Long-term borrowings 4,843.63 3,764.74 Deferred tax liab. (net) - 7.96 Long-term provisions 61.85 68.10 Current liabilities Short-term borrowings 1,407.62 1,159.86 Trade payables 3.93 3.21 Other current liabilities 681.99 241.44 Short-term provisions 81.23 67.53 Total liabilities 8,822.78 6,750.01 Non-current assets Fixed assets 18.20 22.05 Non-current investments 234.90 339.90 Deferred Tax Assets 4.46 Long-term loans & advances 7,836.16 5,485.36 Other non-current assets 29.54 34.69 Current assets Trade receivables 1.14 0.94 Cash and cash equivalents 24.76 22.56 Short-term loans & advances 206.84 208.30 Other current assets 466.78 636.21 Total assets 8,822.78 6,750.01 12
13
14 Total 10,908 11,320 12,666 13,492 15,074
15 Total 6,379 6,582 7,225 7,795 8,634
Project Capacity (MW) Outstanding as at 31 st Mar 2016 (Rs. crore) Investment Status Indian Energy Exchange Limited N.A. 1.52 Operational since June 2008. PFS holds 5% on fully diluted basis in the Company. East Coast Energy Private Limited 1,320 133.38 Construction activities are in progress. Cost overrun for the project has been approved by the lead FI. PFS has received FIPB approval to swap its shareholding into shares of holding company. R S India Wind Energy Private Limited 99 61.12 Phase I (41.25 MW) is commissioned. WTG manufacturing facility housed in a group company is commissioned. PFS has made a provision of entire amount. Total 196.02 16
Shareholding Pattern
18
Way Forward
Continue to develop strategic partnerships locally and globally Leverage deep knowledge of Sector to continuously stay ahead of curve Leverage expertise and strength in Renewable Sector Offer structured financing solutions Maintain a diversified portfolio Expand Fee Income base 20