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Q4FY08 Analyst Meet Notes - Power Finance Corporation 21 April 2008 Source: www.keynoteindia.net
Key Takeaways Key highlight of Q4 is the steep increase in average cost of funds. Growth in Net Interest Income (NII) was capped at just 5% during the quarter. For FY08, NII grew by 28%. On account of the higher average cost of funds, interest expenditure growth at 33.7% outstripped interest income growth at 31.5%. PAT declined by 20% for the quarter, whereas for full year 08, it was up 22.6%. The decline in PAT for this quarter was due to losses on foreign-currency borrowings which were due to rupee appreciation. Forex exposure is approx. 5% of the business. Loan sanctions grew by 123.1% whereas disbursements were up only by 15.3% y-o-y. This is due to the nature of power projects that disbursements, which are spread over a period of 42 months, always lag sanctions. Cumulative sanctions and disbursements reached a figure of Rs1,86,418Cr and Rs92,065Cr respectively. NIM increased by 30 bps, in spite of higher cost of funds of 8%. Net NPAs (as % of loan assets) continue at almost nil levels. Capital Adequacy Ratio stood at 17.4%; hence no fund raising plans in the near term. Ultra Mega Power Projects (UMPP) Krishnapatnam in Andhra Pradesh of 4,000 MW was successfully awarded to Reliance Power. Proposal for Jharkhand-based Tilaiya UMPP of 4,000 MW likely to come up by May 2008. It launched PFC Consulting Ltd., a wholly-owned subsidiary to focus exclusively on fee-based services. The income from consulting services stood at Rs25Cr. It entered into a MOU with Railway Infrastructure Technology and Engineering Services (RITES) for import of Coal and with Indian Renewable Energy Development Agency Ltd (IREDA) for renewable energy. To read more download full version of Power Finance Corporation analyst meeting notes. |
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