CONFERENCE CALL - from Capital Markets
PTC Financial services
Out of the total loan book, 45% is renewal 31% thermal, 5% hydro and roughly 20% others
PTC Financial services held its conference call on 11th February 2016 after it declared results for the December 2015 quarter.
Ashok Haldia - Managing Director & CEO addressed the call:
Highlights of the call:
In December 2015 quarter, total revenue increased 17% to Rs.248.06 crore against to Rs.212.03 crore in Q3 FY2015.
Interest Income grew 19% to Rs.233.38 crore against Rs.195.38 crore.
Net Interest Income (NII) grew 23 %, to Rs.110.22 crore.
Profit Before Tax (PAT) grew 28% to Rs.105.70 crore.
Profit After Tax (PAT) grew 27% to Rs.69.45 crore.
Yield on loan assets stood at 12.96% December 2015 quarter
Cost of borrowed funds reduced to 8.84% compared to 9.39% y-o-y.
Net Interest Margin (NIM) stood at 6.12%
Spread stood at 4.12%.
For the nine months ended December 2015, total revenue increased 57% to Rs.916.95 crore.
Profit from sale of investments stood at Rs.206.93 crore during the nine months.
Interest Income grew 23% to Rs.665.40 crore.
NII grew by 21% to Rs.306.55 crore.
Profit Before Tax grew 114% to Rs.460.90 crore.
PAT grew 136% to Rs.342.06 crore.
The profit, interest income and the loan book continue to reflect upward trend.
As a leading infrastructure finance company, the quality of assets continues to remain top priority and focus area.
The renewable energy space continues to witness increased action
Yield on loan assets stood at 13.13% during the nine months
Cost of borrowed funds reduced to 9.07% during the nine months compared to 9.37% y-o-y.
Nine months NIM stood at 6.05%
Nine months spread stood at 4.07%
As at December 2015 total outstanding loan assets grew 33% to Rs.7,795 crore.
Total debt sanctioned stood at Rs 13,492 crore as on December 2015.
Loss on foreign currency translation was Rs 17.30 crore during the nine months against Rs 12.77 crore.
Steps being taking in the country which will bring investment in power sector.
Industrial growth is yet to pick up in the Indian economy but the government is doing work to restart the capex cycle especially by the road and railways sector. The capex comes after time lag and capex will will happen.
We have very good national tariff policy which will be good for Indian power market.
Supportive regulations are also coming up.
Uday scheme launched by the center will also see benefits coming. This will take time frame of around one year.
Many states are agreeing to set up large solar power.
New Hydro policy is also being discussed which will give fillip to the India. Solar and Hydro can work in a better way compared to standalone Hydro and standalone solar. .
The company can be one of the large beneficiaries of the growth plans of power sector in the country.
India has been transforming in power and financial sector. This has thrown up challenges and opportunities for the company.
The company has started financing extension of power sector also.
In % terms NPA have come down because loan book has increased.
The company is monitoring its portfolio very closely.
PBT, if it excludes before sale of equity, it goes up by 54%.
Debt Equity ratio is healthy at 3.45.
Cost to income ratio is lowest in the Industry
CAR is also healthy 23.58%
Sanction stands at 13500 crore. 55% is for renewal energy. This has 2 affects. One is that renewable energy projects have good sanctioning ratio. Second is the renewable energy has very low stress.
This quarter has seen no extraordinary provision and no addition of NPA.
The management refused to do forecasting of NPAs because it is very difficult to do so. The company's efforts is to see that the project does not go into NPA.
Gross NPA is Rs 400 crore and net NPAs are 286 crore. So Provision coverage is 25%.
The company does not expect any major addition to restructured assets.
Solar capacity in India is less than 7000 MW
Loan book as of now is Rs 7800 crore. Out of this 45% is renewal 31% thermal, 5% hydro and roughly 20% others.