Rec Limited · NSE:RECLTD
Rec — Q4 FY2021 Earnings Presentation
26 slides from Rec's earnings presentation, 2021
Slide 1: Five Decades Of Relentless Growth
REC Limited A Navratna Company Investor Presentation Performance Highlights Q4 & 12M FY 21 Five Decades Of RELENTLESS GROWTH
Slide 2: Table of Contents
Table of Contents ❑ 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 buy or sell any securities of REC Limited
Slide 3: REC Overview
REC Overview 3
Slide 4: Key Strengths
Unique and close relationship with all Occupies Strategic major players – Position in the Growth Public & Private - in and development of Indian Power sector the Power Sector across India Experienced Registered as Management NBFC, PFI and Team With IFC with RBI and Sector a Notified Expertise Instit
Slide 5: Shareholding Pattern
Shareholding Pattern As at 31.12.2020 As at 31.03.2021 PFC, 52.63 PFC, 52.63 FPI, 26.37 FPI, 26.75 MFs, 9.45 MFs, 9.07 Others, 1.49 Insurance Others, 1.70 Individual/ Cos., 3.03 Insurance Corporates, Individual/ Cos., 2.98 HUF, 6.36 Corporates, 0.67 HUF, 6.29 0.58 Foreign Portfolio Investors (FPIs)
Slide 6: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at March 31, 2021 Dividend Payout as a % of Equity Rank Particulars Shareholding (%) Share Capital 1 Power Finance Corporation Ltd 52.63 Consistently high dividend paying company 2 HDFC Trustee Company Ltd 8.47 125% 3 The WindAcre Partnership Master Fund L
Slide 7: Operational Performance
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Slide 8: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in Q4 & 12M FY 21 40% growth in total Generation Sanctions Renewable 12M FY20 vs 12M 28% 12% FY21 STL 1% T&D 59% (₹ in Crores) 12M Q4 Discipline-wise FY 18 % FY 19 % FY 20 % FY 21 % FY 20 % FY 21 % Generation 53,224 49 43,282 37 57,362 52 44,3
Slide 9: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in Q4 & 12M FY 21 23% growth in total STL Disbursements 1% Generation Renewable 29% 12M FY20 vs 12M FY21 3% Distribution Transmission 57% 10% (₹ in Crores) 12M Q4 Discipline-wise FY18 % FY19 % FY20 % FY21 % FY 20 % FY 21 % Generation 1
Slide 10: Outstanding Loans – Composition
Outstanding Loans – Composition State 84% STL Generation 1% 41% Renewable Transmission Energy Distribution 16% Private 38% 4% 10% Joint 6% (₹ in Crores) 0% As at st st st st Discipline-wise 31 March 2018 31 March 2019 31 March 2020 31 Mar 2021 Amount % Amount % Amount % Amount % State 186,445 78 226
Slide 11: Asset Diversification - PAN India Presence
J&K and Ladakh Haryana Figures in ₹ Crores 1961 5,438 Himachal Pradesh 1,302 Assam 578 Punjab Uttarakhand Arunachal Pradesh Asset Diversification - 6,178 3,101 UP Sikkim 5 5,238 PAN India Presence Rajasthan 49,983 Bihar 37,436 14,912 Lending across 27 States and 3 Union Territories Nagaland 82 Manip
Slide 12: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as at March 31, 2021) Amount % of Total S. No. Top Ten Borrowers Outstanding Loan Assets (₹ in Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 28,228 7.48% 2 Maharashtra State Electricity Distribution Company Limited 22,081
Slide 13: Asset Quality
Asset Quality 13
Slide 14: Asset Quality as at March 31, 2021
Asset Quality as at March 31, 2021 9.00% Improving Asset Quality Increase in Provision Coverage Ratio 70.00% 8.00% 7.24% 6.86% 7.00% 6.59% 64.59% 7.18% 65.00% 6.11% 6.00% 6.40% 5.10% 60.94% 5.22% 60.00% 61.87% 5.00% 4.84% 4.00% 3.79% 3.47% 55.00% 3.32% 2.88% 52.89% 3.00% 3.72% 50.68% 3.16% 1.95% 50.
Slide 15: Loan Portfolio as at March 31, 2021
Loan Portfolio as at March 31, 2021 Figures : ₹ in Crores Credit Impaired Assets Standard Assets (Stage – III) (Stage – I & II) Total Particulars Loan O/s Provision Provision ECL* O/s ECL coverage ratio O/s ECL coverage ratio (%) (%) State Sector - Gencos 129,461 - - - 129,461 346 0.27 346 - Renewab
Slide 16: Borrowing Profile
Borrowing Profile Domestic Credit Ratings for Long Term Borrowings “AAA” “AAA” “AAA” “AAA” International Issuer Ratings “BBB- ” “Baa3” 16
Slide 17: Outstanding Borrowings
Outstanding Borrowings (₹ in Crores) As at st st st Particulars 31 March 31 March 31 March st 31 March 2021 2018 2019 2020 Amount Amount Amount Amount % Corporate Bonds 128,871 135,184 158,148 179,989 55.8 Foreign Currency Borrowings 25,996 29,710 44,380 47,487 14.7 FCNR (B) Loans 3,811 5,048 6,973
Slide 18: Diversified Borrowing Profile
Diversified Borrowing Profile As at 31st March 2021 0% Corporate Bonds 18% Foreign Currency Borrowings 4% FCNR (B) Loans 56% Capital Gain Bonds 5% 2% Tax Free Bonds 15% Loans from Banks, FIs, NSSF etc. Infra Bonds ~ 62% of foreign currency exposure with 5 years’ residual maturity hedged 18
Slide 19: Funds Raised During The Period
Funds Raised During The Period (₹ in Crores) 12M Q4 Category FY18 FY19 FY20 FY21 FY20 FY21 (A) Long Term Capital Gains Bonds 9,565 6,652 6,157 5,312 1,704 2,287 Institutional Bonds/ Subordinate Debt 26,145 24,010 42,713 48,660 16,241 14,447 Loans from Banks/FIs/ NSSF - 24,550 14,725 21,053 4,400 7,0
Slide 20: Funds Raised During The Period (Long Term)
Funds Raised During The Period (Long Term) Total Funds raised 47,406 64,946 75,998 89,872 (₹ Crores) % age 100% 90% 19.4 23.5 24.7 80% 37.8 70% 16.3 16.5 20.2 60% 8.1 5.9 15.0 50% 40% 10.2 30% 56.2 55.2 54.1 20% 37.0 10% 0% 2018 2019 2020 2021 Taxable Bonds 54EC Bonds ECB Banks/ FIs/ NSSF 20
Slide 21: Financial Highlights
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Slide 22: Key Financial Highlights for Q4FY21
Key Financial Highlights for Q4FY21 ❑ Total Income grown to ₹ 9,150 crores ( 18% YoY) ❑ Net Interest Income recorded at ₹ 3,308 crores ( 20% YoY) ❑ Loan book reached to ₹ 3.77 lakh crores (17% YoY) ❑ Assets Quality improved with Net Credit impaired Assets at 1.71% (vs. 3.32% YoY) ❑ Provision Cove
Slide 23: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ in Crores Q4 12M Particulars FY20 FY 21 FY20 FY 21 Interest Income on Loan assets 7,691 8,746 29,422 34,303 Less: Finance Costs 4,942 5,438 18,997 21,489 Net Interest Income 2,749 3,308 10,425 12,814 Other Operating Income 148 155 369 513 Net notional gain/ (l
Slide 24: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ in Crores Particulars As at 31.03.2020 As st 31.03.2021 Assets (A) Financial Assets 343,497 396,951 Cash and bank balances 3,700 3,070 Derivative financial instruments 3,319 2,311 Loans (Ind-AS) 312,084 365,261 Investments 2,313 1,910 Other financial assets 22,0
Slide 25: Key Ratios
Key Ratios Q4 12M Particulars FY20 FY21 FY20 FY21 Yield on Loan Assets (%) 10.55 10.06 10.57 10.46 Cost of Funds (%) 7.28 6.91 7.31 7.13 Interest Spread (%) 3.27 3.15 3.26 3.33 Net Interest Margin (%) 3.76 3.79 3.74 3.89 Return on Net Worth (%) 4.74 19.44 14.09 21.30 Interest Coverage Ratio (Times)
Slide 26: Thank You
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