PTC Fin Service
60% subsidiary of India’s largest power trader PTC India, PTC India Financial Services reported Q2FY14 revenue of Rs. 109 crore, up 27% QoQ and 50% YoY and net profit of Rs. 30 crore, which is up 23% sequentially and 4% annually, as spreads and NIMs contacted YoY. With Q2 EPS of 53 paisa, the company’s H1FY14 EPS now stands at Rs. 0.96, a notch higher than FY13’s EPS of Rs. 1.85.
Having disbursed Rs. 549 crore in the quarter gone by, company’s current loan book stands at Rs. 3,125 crore, 40% of which is accounted for by the ‘quality’ renewal energy portfolio, thus, being a safer lending avenue. With proactive focus on this relatively safer vertical, even going forward, should help company maintain its asset quality. As of 30th September 2013, gross NPAs were a miniscule Rs. 4.9 crore (0.16% of gross advances) while net NPAs were Nil.
The infra financing company, lending both debt as well as equity, clocked RoA (not annualized) of 1.42% for H1FY14. As of 30th September 2013, its capital adequacy ratio is 32.31%, although down from 42.01% as of 31st March 2013, is still at a very comfortable level.
With equity of Rs. 562 crore and networth of Rs. 1,233 crore, as of 30th September 2013, company’s BVPS stands at approximately Rs. 22, which discounts the current share price of 11.50 by 0.5 times. The PE multiple, based on annualized H1FY14 earnings, is slightly less than 6 times.