Slide 1: Rural Electrification Corporation Limited – Performance Highlights Q3 and 9M FY18
Rural Electrification Corporation Limited A Navratna PSU Management Presentation Performance Highlights Q3 and 9M FY 18 THE FUNDING PARTNER FOR POWER SECTOR
Slide 2: Table of Contents
Table of Contents India - Power Sector – Empowering India REC Overview Operational Performance Asset Quality Borrowing Profile Financial Highlights Disclaimer : • This presentation is for information purposes only and is not to be construed as an offer or invitation or recommendation to
Slide 3: India - Power Sector – Empowering India
India - Power Sector – Empowering India 3
Slide 4: Generation
Generation Installed Capacity 331 GW Generating Generation Stations 900 Units 2200 Generation Peak Demand PLF 59% 164 GW Source : POSOCO & CEA 4
Slide 5: Transmission
Transmission Transmission Lines 3,78,575 CKM 7000 Transformation Substations Capacity 7,81,330 MVA Transmission LINES 100 nos -765KV 26 ISTS Transmission >1300 nos – 400KV LINES Licensees >3200 nos– 220KV 10 nos – HVDC Bipole BtB India has the 3rd largest Grid in the World Source : POSOCO & CEA 5
Slide 6: Annual Per Capita Consumption of Electricity (kwh)
Annual Per Capita Consumption of Electricity (kwh) * Per capita Consumption World - 2,674 Brazil - 2,516 South Africa - 3,904 China - 4,310 Japan - 7,371 Russia - 7,481 Singapore - 8,160 USA - 12,077 Source : CEA & Wikipedia * Provisional; Source : http://www.cea.nic.in/reports/others/planning/pdm/g
Slide 7: “Power for All” - Demand by 2021-22 (MW)
“Power for All” - Demand by 2021-22 (MW) 43% Source : CEA 7
Slide 8: “Power for All” - Installed Capacity by 2021-22 (MW)
“Power for All”- Installed Capacity by 2021-22 (MW) 331 GW 540 GW MW 73% 37% 68% 67% Estimated fund requirement for generation capacity addition – INR 10,33,400 Crores during the period 2017-22 Source : CEA 8
Slide 9: “Power for All” - Transmission Line Capacity by 2021-22 (CKM)
“Power for All” - Transmission Line Capacity by 2021-22 (CKM) 23% Estimated fund requirement for Transmission capacity addition including Transformation – INR 2,60,000 Crores during the period 2017-22 Source : CEA 9
Slide 10: “Power for All” - Transformation Capacity by 2021-22 (MVA)
“Power for All” - Transformation Capacity by 2021-22 (MVA) 25% Estimated fund requirement for Transmission capacity addition including Transformation – INR 2,60,000 Crores during the period 2017-22 Source : CEA 10
Slide 11: Renewable Energy in India
Renewable Energy in India Sources Potential (%) Potential (GW) India has voluntary commitment to reduce Wind Power (Onshore) 11% 103 Solar 83% 749 emission intensity by 33% - 35% from 2005 levels Small Hydro 2% 20 by 2030. Biomass /Bagasse 3% 23 It seeks to achieve about 40% cumulative electric
Slide 12: “Power for All” – Distribution Modernization by 2019
“Power for All” – Distribution Modernization by 2019 Present By March 2019 AT & C Loss Below 15% 24.6% Gap ACS -ARR Zero Rs.0.6/U Power Supply 24X7 19.9 Hrs Power for All 12
Slide 13: Saubhagya: Universal access to Quality Power for All
Saubhagya: Universal access to Quality Power for All Overview of Saubhagya On 25th September 2017, the GoI launched Rs. 16,350 crores household electrification scheme named Pradhan Mantri Sahaj Bijli Har Ghar Yojana (translated as the Prime Minister’s Programme to provide easy electricity access t
Slide 14: REC Overview
REC Overview 14
Slide 15: Key Strengths
Key Strengths 1 2 Occupies Strategic Unique and close Position in the Growth relationship with all and development of the major players – Public Power Sector across & Private - in Indian India Power sector 8 3 Experienced Management Nodal Agency for Team With Sector providing 24x7 quality Expertise
Slide 16: Major Milestones in Long & Successful journey
Major Milestones in Long & Successful journey of more than 48 years Nov’ 2017 : “Bharat 22” ETF, GOI holding reduced to 58.32% Sept’ 2017 : Appointed as the nodal agency for “Saubhagya” Scheme Jan-March 2017 : CPSE ETF Further Fund Offer (FFO); GoI holding reduced to 58.86%. 2015 : Govt. of India (G
Slide 17: Board of Directors – Experienced Team with sector experience
Board of Directors – Experienced Team with sector experience Was Special Chief Secretary and Development Commissioner in the Govt of AP. Also held Dr. P.V. Ramesh, important position of Principal Finance Secretary, Principal Secretary Department of Health IAS & Family Welfare and Commissioner of I
Slide 18: Board of Directors – Experienced Team with sector experience
Board of Directors – Experienced Team with sector expirence Served on Board of Union Bank of India & State Bank of India. Was member of Committee Mr. Arun Singh of Eminent person in PGCIL. Has handled various projects of FAO, UNO and World Bank Independent Director as National Consultant. 27 years
Slide 19: Shareholding Pattern
Shareholding Pattern * * GoI diluted 0.54% of its holding through “Bharat 22” Exchange Traded Fund in November 2017. GoI holding stands at 58.32% as at end of December 31, 2017 19
Slide 20: Shareholding Pattern
Shareholding Pattern Top 10 Share holders as at December 31, 2017 Shareholding Rank Particulars Category (%) 1 President of India 58.32 POI 2 Life Insurance Corporation of India 2.30 INS 3 The Prudential Assurance Company Limited 1.73 FPI 4 East Bridge Capital Master Fund Limited 1.13 FPI 5 CPSE ETF
Slide 21: Operational Performance
Operational Performance 21
Slide 22: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in 9M FY18 41 % Project Loans 9MFY18 vs 9MFY17 Rs. Crores 12M 9M Q3 Discipline-wise FY15 % FY16 % FY17 % FY 17 % FY 18 % FY 17 % FY 18 % Generation 23,778 39 27,828 43 28,209 34 33,306 49 49,384 52 5,701 33 25,580 66 Renewable Energy 548 1 2,9
Slide 23: Disbursements - Composition
Disbursements - Composition Sector-wise breakup of Disbursements in 9M FY18 3% Project Loans 9MFY18 vs 9MFY17 Rs. Crores 12M 9M Q3 Discipline-wise FY 15 % FY 16 % FY 17 % FY17 % FY18 % FY17 % FY18 % Generation 13,828 32 12,820 27 21,697 37 15,441 42 13,283 34 4,082 35 5,398 42 Renewable Energy 295 1
Slide 24: Outstanding Loans – Composition
Outstanding Loans – Composition Customer-wise breakup of Loans as at 31.12.2017 Category-wise breakup of Loans as at 31.12.2017 Rs. Crores 12M 9M Discipline-wise FY 15 FY 16 FY 17 FY17 FY18 Amt % Amt % Amt % Amt % Amt % State 133,712 75 153,941 77 151,976 75 153,708 76 172,117 76 Joint 14,629 8 16,8
Slide 25: Outstanding Loans - Asset Diversification
Outstanding Loans - Asset Diversification PAN India Presence with loan concentration across 28 states and 1 Union Territory J&K Figures in Rs. Crores 297 Himachal Haryana 676 6,045 Punjab Uttarakhand 247 7,956 2,267 Assam Arunachal Rajasthan 20 Bihar 22,459 UP 10,980 1,270 21,494 Sikkim Madhya Prade
Slide 26: Outstanding Loans - Loan Concentration
Outstanding Loans - Loan Concentration Major Borrowers (as on December 31, 2017) Amount Outstanding % of Total Loan S.No. Top Ten Borrowers (Rs Cr.) Assets 1 Maharashtra State Power Generation Company Limited 13,201 5.89% 2 Maharashtra State Electricity Distribution Company Limited 12,373 5.52% 3 Ra
Slide 27: Asset Quality
Asset Quality 27
Slide 28: Asset Quality – NPA position
Asset Quality – NPA position Non-Performing Loan Assets Figures : Rs. Crores 12M H1 9M Particulars FY 15 FY 16 FY 17 FY 18 FY 18 Loan outstanding 179,647 201,278 201,929 215,845 224,014 Gross NPA 1,335 4,243 4,873 5,473 6,706 Provision 365 1,013 1,639 1,885 2,167 Net NPA 970 3,230 3,234 3,588 4,539
Slide 29: Asset Quality - Restructured Standard Loan Assets
Asset Quality - Restructured Standard Loan Assets Rs. Crores Rs. Crores Rs. Crores Public (State) Private Total Restructured Standard Loans Provision Figures : Rs. Crores 12M H1 9M Particulars FY 15 FY 16 FY 17 FY 18 FY 18 Public (State Sector) 11,682 12,470 10,925 10,764 8,556 Provision - Public 32
Slide 30: Borrowing Profile
Borrowing Profile 30
Slide 31: Outstanding Borrowings
Outstanding Borrowings Rs. Crores 12M H1 9M Particulars FY 15 FY 16 FY 17 FY 18 FY 18 Institutional, Subordinate & Zero 97,068 109,678 113,449 111,172 121,314 Coupon Bonds Foreign Currency Borrowings 24,028 21,924 21,081 24,925 24,933 Capital Gain Bonds 15,591 17,164 19,477 20,568 21,356 Tax Free Bo
Slide 32: Outstanding Borrowings
Outstanding Borrowings (Rs. Cr.) 1,51,024 1,69,106 1,67,517 1,75,626 1,82,342 % age 32
Slide 33: Funds Raised During The Period
Funds Raised During The Period Rs. Crores 12M H1 9M Category FY15 FY16 FY17 FY 18 FY 18 (A) Long Term Capital Gains Bonds 5,338 6,477 7,663 3,412 5,428 Tax Free Bonds - 1,000 - - - Institutional Bonds/ Subordinate Debt 29,200 15,526 18,600 6,305 16,425 Banks, FIs, etc. - - - - - Foreign Currency Bor
Slide 34: Funds Raised During The Period (Long Term)
Funds Raised During The Period (Long Term) (Rs. Cr.) 41,190 31,255 28,495 13,921 28,990 % age 34
Slide 35: Financial Highlights
Financial Highlights 35
Slide 36: Key Financial Highlights
Key Financial Highlights Loan Book as at end of 9M FY18 increased to Rs. 2,24,014 cr against Rs. 2,01,937 cr as at end of 9M FY17, registering a growth of 11%. Net worth as at end of 9M FY18 increased to Rs. 36,567 cr against Rs. 33,553 cr as at end of 9M FY17, registering a growth of 9%. As a
Slide 37: Key Financial Highlights
Key Financial Highlights Yield on Loan Assets & Cost of Funds Yield = Ratio of interest income to average interest earning loan assets Cost of funds = Ratio of finance costs to average borrowings, without foreign exchange fluctuation gain/loss amortized. Interest Spreads & Net Interest Margins Inter
Slide 38: Key Financial Highlights
Key Financial Highlights Interest Coverage Ratio Interest Coverage Ratio = Ratio of Profit before Interest & Tax to Profit Before Tax Times Debt Equity Ratio Debt Equity = Ratio of Total Borrowings to Net Worth 38
Slide 39: Key Financial Highlights
Key Financial Highlights Capital Adequacy Ratio % Minimum Requirement as per RBI Guidelines : 15% Capital Adequacy ratio = Ratio of Owned Funds to Risk Weighted Assets Return on Average Net Worth * Return on Average Net worth = Ratio of PAT to average Net Worth * Net worth is after considering divid
Slide 40: Key Financial Highlights
Key Financial Highlights Earnings per Share Rs. (Face Value of Rs. 10 per share) Earnings per Share = Ratio of PAT to outstanding Equity shares. Rs. Book Value per Share (Face Value of Rs. 10 per share) Book Value per share = Ratio of Net worth to outstanding Equity shares. 40
Slide 41: Standalone Balance Sheet (abridged)
Standalone Balance Sheet (abridged) Rs. Crores 12M 6M 9M Particulars FY 15 FY 16 FY 17 FY 18 FY 18 Liabilities Shareholders Funds 24,857 28,618 33,326 35,145 36,567 Borrowings 151,024 169,106 167,517 175,626 182,342 Deferred Tax Liabilities (Net) 107 50 40 88 70 Other Liabilities 7,187 8,579 8,353 9
Slide 42: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Rs. Crores 12M 9M Q3 Particulars FY15 FY16 FY 17 FY 17 FY 18 FY 17 FY 18 Interest Income (1) 20,072 23,471 22,936 17,218 16,304 5,573 5,470 Less: Finance Costs 11,845 14,283 13,775 10,352 10,204 3,373 3,434 Net Interest Income 8,227 9,188 9,161 6,866 6,100 2,200 2,
Slide 43: 43
43