PTC India Financial Services Limited: Expert in financing sustainable Infrastructure sectors

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Under leadership of MD & CEO- Dr. Pawan Singh, PFS is striving towards a brighter future.

 

PTC India was established in 2006. PTC India Financial Services Limited (PFS) is a renowned name for providing finance to the sustainable infrastructure sector including growing and upcoming areas like renewable power, electrical vehicle charging stations, water and sewage treatment plants, road HAM projects, ports, transmission lines and many more. In a short span of time, PFS has established a solid foundation with ‘systems and processes’ in place, but it has also focused on an approach based on change with the changing environment without compromising on basic business values and corporate ethics. Over a period, PFS has acquired developed a strong credit underwriting skills adhering to the risk factors for various Infra sectors. PFS is now looking to extend its relationship with leading global DFIs so as to have alternate funding sources and to reduce its dependence on domestic borrowings. 

PFS capital adequacy is around 23%, against regulatory requirement of 15%, which enables it to generate further value to its stakeholders with decent growth in near future. PFS has executed MOUs with the U.S.-India Clean Energy Finance (USICEF) with the aim to support early-stage projects in scaling up, mitigating risk and attracting investment. PFS is the first Indian NBFC to strike a Master Co-operation agreement with the International Finance Corporation (IFC) to play a crucial role in regulating the lending processes while co-financing projects with IFC. 

 

The Clientele and Business Model

The business model of PFS is aimed at supporting infrastructure projects in the power sector and capitalising on growth opportunities, which present themselves from time to time. Unlike many other players in this space, PFS provides both debt and equity funding, advisory and fee-based services, which makes it a stronger and more reliable partner for the clients. The entire loan sanction process in public infra companies is filled with tedious and time-consuming steps which increase difficulties for the borrowers. PFS has monitored this situation and rolled out systems frameworks and processes which are both seamless and prudent. The result is lower turnaround times, both frontend and backend, right from initial inquiry until disbursement and recovery of loans. PFS is known for its customer-centric approach and dedication towards excellence.

PFS also has an eye on the future and the company has started to diversify its business of financing power generation projects to various other opportunities like renewable power projects, sewage treatment and other framework areas like ports, streets, roads, infra logistics and many more. PFS has good liquidity at its disposal which will prove crucial during challenging times and keep the business perfectly insulated from the vagaries of macro environment changes.

 

Challenges faced by BFSI companies

The recent years have presented a lot of challenges for the Banking and Financial Services sector. The NBFCs, in particular, have endured a rough time after the IL&FS crisis. For example, only limited funds were available in the market for debt sanction/drawl to NBFCs, which led to liquidity issues. The lenders were in a tough spot as they had to maintain their portfolio’s quality and manage the cost of funds with the increasing interest rates. Naturally, PFS has also not been immune to these difficulties. But, it is the response to a crisis that acts as either ‘make’ or ‘break’ for an organization. During such adversity, PFS has addressed each and every concern and came out on a stronger footing. To create the most for its business, PFS continues to strengthen its credit appraisal process and risk management function, while focusing on their project monitoring function for early identification of stress in the portfolio. Over the years, PFS has financed more renewable projects, as a result, their thermal/hydro projects now account for less than 10% of the company’s loan book. Infact, PFS balance loan book of 90% is having negligible stress which itself depicts the efficiency and way of performance for the company in near future. PFS has resolved stress /NPAs worth around Rs. 1300 crores in the last two fiscals and the company is expecting quick progress in resolving the remaining accounts. 

 

Impact of Covid-19

The Coronavirus pandemic and the grave economic and humanitarian crisis it has caused demands that a fundamental shift is needed in corporate behavior. There is more active discussion now on how to make the world a more equal and better place for future generations. It is clear that 2020 will be remembered as the watershed year for the direct relevance and impact of unpredictable events such as Covid-19 pandemic and the damage they caused to the global economy. As the world has been dealing with COVID-19 challenges, businesses face bigger financial problems. The experts need a new perspective on fund management issues, serving remotely, and struggling to keep business afloat.

PFS has a massive structural advantage on this front as 60% of its contracts are for the renewable sectors. These sectors fall into the category of must-run divisions as sanctioned by the Government of India. Thus, the repayments by borrowers to PFS have not been influenced to a large extent. Even otherwise, renewables are a sector which stands to gain from issues and initiatives like climate change, reducing reliance on fossil fuels, saving forests and the need for a healthier and cleaner environment in heavily polluted cities. This is a clear indication that PFS scores highly on parameters related to business resilience evaluation and longevity. Since the COVID-19 pandemic began, PFS has been actively working on building a robust mechanism to consolidate its portfolio and effectively utilize its relatively inferior assets. The group is also focused on evaluating emerging opportunities and demonstrating effective decision making when required. to ensure long-term growth.

 

Differentiating Factors

Pawan Singh

PFS is a comprehensive power sector solutions provider with robust financing capabilities and a clear vision for the future. An important part of the business is staying a step ahead of the competition and increasing domain expertise. The uniqueness of PFS lies in developing and delivering structured products linked to equity or debt, tailored to the risk profile and needs of specific projects in a record timeframe. The other key differentiator is the extensive business network. This gives an unmatched view of the entire ecosystem to PFS and provides an edge and acumen, capable of adding significant value to the business for company, clients and stakeholders. Having forayed into the renewable sector in FY20, the company’s total outstanding exposure was 59%. In the same year, 66% of their projects were related to pollution-prevention methods (waste and wastewater management) and renewable projects based on wind and solar energy.  

 

The Workforce

PFS houses a full-fledged in-house team with more than a decade of experience in origination, structuring and credit appraisal of projects across sectors. The team comprises highly skilled members, the management team has a good understanding of the entire value chain of the energy and financial sectors. Under leadership of MD & CEO, Dr. Pawan Singh, who is a highly known name in the industry for his vision and for turning round non performing organizations to leading organizations, the efficiency and dedication of the professional team ensure that PFS remains the industry leader and can tackle challenges effectively. The HR initiatives by PFS Management are undertaken to bring a positive impact on the employees and the business.

PFS through its CSR initiatives are committed to protect the climate, ensure a clean environment, social upliftment of the communities in which it operates etc. PFS CSR projects give maximum benefits to the society and are sustainable in the long term. Some of the PFS initiatives in the recent past are – सेहत की सवारी (Mobile Health Clinics); Crop Residue Management (stop stubble burning); Project Digital Connect (Digitalisation of SOS Children’s Villages); “सेहत की टोकरी” (Covid protection kits); Rain Water Harvesting (conserve & replenish groundwater).”

 

Vision and Future Prospects

For a significant part of the 21st Century, PFS has been providing funds to all major infrastructure companies in the power and upcoming infrastructure sectors, becoming one of India’s leading NBFCs. The future endeavor of the company is to amplify growth opportunities by diversifying its core business. The company is looking forward to financing more projects that will generate higher returns for its investors while building a sustainable infrastructure. PFS has strived to reduce its short-term liabilities, which are now down to 10% from 30-40% just a couple of years back. Furthermore, the cost of borrowed funds has been brought down gradually and strategic partnerships are being developed across local and global arenas. PFS is gearing up to scale new heights, both in terms of market capitalization and credit standing. The organization visions of becoming one of the highly valued NBFC of the country and a major contributor in development of infrastructure to the country. It is heartening to note that the Government of India (GoI) is leading the drive towards dependence on renewable sources of energy. The policies introduced in these areas are opening up new business opportunities in the field and PFS is confident to be a part of this revolution. 

Further PFS plans to fund ventures and projects in E-mobility, EV charging stations, wastewater treatment, and much more in the future. These initiatives align with the pro-environmental stance and commitment to reducing pollution from the Government of India. PFS’s focus on the renewable sector will encourage more startups who operate with pro-environmental ethos. The foresightedness of PFS in this matter will give it a massive advantage as an early player and provide long-term benefits to the country. Each and every day, PFS rededicates itself to that vision and works towards achieving it. 

 

Advice for upcoming entrepreneurs

PTC financial services

  • The traditional Indian philosophy Vasudhaiv Kutumbakam must be followed. It means the entire world is just one, single family. The goodness of an action has to be for everyone and cannot be selective.

 

Awards and Milestones

  • PFS has successfully financed more than 8,000 MW of renewable energy projects (60% solar and 40% wind) which have helped in reducing 356.80 million tonnes of carbon footprint. 
  • PFS has funded  projects, which are in line with the Schedule VII of the Companies Act as also the Sustainable Development Goals (SDGs) adopted by the UN.

 

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