**[investwise]** PFC-Sanctions Cross Rs 141,000 Cr, FY11 Disbursements To Exceed Rs 290BN

 

Excerpts From PFC's concall with Analysts   Some of the growth statistics of PFC for the last five years, these are compounded annual growth rate for the five years: sanction grew by 29%, disbursement grew by 22%, Loan assets grew by 22%, net worth grew by 16%, total income grew by 22%, PAT grew by 19%.   Disbursements in 2009 – 2010 stood at 25,808 crores showing an increase of 23%, Sanction was 65,466 crores showing an increase of 15%, Loan assets as on 31 st March 2010 stood at 79,856 crores showing an increase of 24% over last year. Net worth stood at 12,618 crores showing an increase of 17%.   PFC's balance sheet size as of March 31st 2010 was Rs 84,746 crores of which shareholders‟ funds was 16%, borrowings were 79%, current assets were 4% and deferred tax liability, interest subsidy were about 1%. Looking from the assets side, the balance sheet size was 84,746 crores of which 94% is loan assets and current assets were 6%. Investments and fixed assets were negligible at roughly about 0.1%.   Now the key indicators, sanction in 2009-10 was 65,466 crores, showing an increase of 15%. Net outstanding sanctioned, that is cumulative sanctions minus cumulative disbursements as on end of March 2010 was 1,41,813 crores, showing an increase of 17%.   Disbursement in 2009-10 was 25,808 crores, showing an increase of 23%. Loan assets was 79,856 crores, showing an increase of 24%. Yield on assets was 10.75% versus 10.92%, showing a dip of 17 basis points. Cost of funds was 8.14% in 2009-10 versus 8.71% in 2008-09, showing a dip of 57 basis points.   So, the interest spread has increased by 40 basis points from 2.21% to 2.61%. Net interest margins stood at 4%, showing an increase of 16 basis points. Return on average net worth was 20.12% versus 20.23% last year, showing a dip of 11 basis points.   But, if you neutralize the DTL reversal, then the return on average net worth was 19.97% versus 15.27%, showing an increase of 4%. Debt equity ratio was 5.18 times, up by 30 points. Leverage was 6.53 times, up by 22 points. Capital Adequacy Ratio was 19.25% versus 17.15%. We have been calculating the Capital Adequacy based on assigning 100% risk weight on loan assets.   Some of the major sanctions were that 1600 megawatt Yermarus TPS of Raichur Power Corporation, we have sanctioned 7000 crores. 1371 megawatt, gas based power plant in Pragati Power in Delhi, 3600 crores, 600 megawatt, Rayalaseema Stage IV in AP 2400 crores, 727 megawatt Palatana power project in ONGC Tripura in Tripura, 2224 crores, 3600 megawatts KSK Mahanidhi in Chhattisgarh, 1894 crores. These are given here.   The MoA targets which we have promised, we have signed with the Government of India for next year was, sanctions will be 69,000 crores of which R-APDRP sanction will be 9000 crores and normal sanction will be 60,000 crores.   Disbursements at 29,500 crores, of which R-APDRP will be 2500 crores and normal sanction, normal disbursements, will be 27,000 crores. We will be mobilizing 27,700 crores in order to meet our commitments of disbursements. This mobilization may be in the form of bonds, loans etc.           Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.   Nothing in this article is, or should be construed as, investment advice.

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