Rec Limited · NSE:RECLTD
Rec — Q3 FY2023-24 Earnings Presentation
31 slides from Rec's earnings presentation, January 2024
Slide 1: REC Limited Investor Presentation: Performance Highlights Q3 & 9M FY 2023-24
REC Limited A Maharatna Company Investor Presentation Performance Highlights for Q3 & 9M FY 2023-24 Funding India’s Ambitions 1
Slide 2: Table of Contents
REC Overview Borrowing Profile Table of Operational Performance Contents Financial Highlights Asset Quality 2
Slide 3: REC Overview
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Slide 4: REC Journey
REC Journey 2022: Conferred 1969: Journey began 2003: Mandate 2019: As Nodal ‘Maharatna’, highest to develop power broadened to 2010: Conferred IFC Agency, achieved status for a PSU. infrastructure in financing all power status by RBI 100% Household Forayed into rural areas segments Electr
Slide 5: Key Strengths
Key Strengths Experienced Management Team ‘Maharatna’ Company and a strategic player in the Indian with Sector Expertise Power, Infrastructure and Logistics Sector 8 2 Nodal Agency for major Govt. of India’s power sector Diversified Asset Base with programmes – RDSS, Saubhagya, robust Access to Dive
Slide 6: Awards and Accolades
Awards and Accolades Awarded ‘Plaque’ under ‘Financial Services Sector (Other than Banking and Insurance)’ category at the ICAI Awards for Excellence in Financial Reporting for FY 2022-23 ‘Best PSU' ‘Ranked 53rd' ‘Golden Peacock Award' In the Financial In Fortune For Risk Services India 500 category
Slide 7: Accorded Maharatna Status in FY 2022-23
Accorded Maharatna Status in FY 2022-23 REC is amongst the Coveted Few Indian PSUs Maharatna - Business advantages Highest rank for top-performing PSUs in India Maharatna Total of 13 PSUs accorded this status 2nd highest rank of top-performing PSUs in India Navratna Total of 16 PSUs accorded
Slide 8: Forayed into Infra Sector
Forayed into Infra Sector: For Nation’s Accelerated Development REC has diversified its loan portfolio with a mandate of up to 33% loans in the Infrastructure and Logistics sector Health Sector Metro Steel Infra Ports Waterways IT Infra / Fiber Optics Airport Road & Highways Oil Refinery 8
Slide 9: Government's Trusted Arm
Government’s Trusted Arm Consumer Service Ratings of Discoms (Operational) Annual Rooftop Solar Integrated (RTS) Rating of programme Discoms (Financial) NEF RDSS LPS- financial DDUGJY disruptive/ Cost of operation SAUBHAGYA 9
Slide 10: Shareholders Outlook
Shareholders Outlook Shareholding Pattern EPS Book Value as at 31.12.2023 (Annualized) Per Share Rs. 50.65 Rs. 246.04 PFC 52.63% Consistent increase in share price from Rs. 115.45 as on FPI/ FII Mar 31, 2023 to Rs. 412.85 as on Dec. 29, 2023, increase of 258% 20.60% 500 412.85 450 400 350 281.30 300
Slide 11: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at December 31, 2023 Dividend Payout as a % of Equity Share Capital Consistently high dividend paying company Rank Particulars Shareholding (%) 150% 1 Power Finance Corporation Ltd 52.63 2 HDFC Balanced Advantage Fund 2.81 125% 3 HDFC Life Insurance Compan
Slide 12: Operational Performance
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Slide 13: Sanctions - Composition
Sanctions - Composition (Rs. in Crores) Sector-wise breakup of Sanctions in Q3 FY 24 12M Q3 9 M FY 24 Discipline-wise FY 23 % FY 23 % FY 24 % FY 23 % FY 24 % Generation 31,253 12 2,506 5 26,797 20 27,783 14 63,402 19 Generation Renewables incl Large Hydro 21,279 8 9,498 20 75,125 57 21,203 11 1,25,0
Slide 14: Disbursements - Composition
Disbursements - Composition (Rs. in Crores) Sector-wise breakup of Disbursements in Q2 FY 24 12M Q3 9 M FY 24 Discipline-wise FY 23 % FY 23 % FY 24 % FY 23 % FY 24 % Renewables incl Hydro Transmission Generation 9% Generation 18,754 19 5,072 17 10,675 23 11,114 19 20,875 17 3% 23% Renewables incl La
Slide 15: Outstanding Loans – Composition
Outstanding Loans – Composition (Rs. in Crores) As at st st st Discipline-wise 31 December 2023 31 March 2023 31 March 2022 State Amount % Amount % Amount % 90% State 4,50,031 90 3,93,225 90 3,50,456 91 Private 47,435 10 41,787 10 34,915 9 Total 4,97,466 100 4,35,012 100 3,85,371 100 Private Generat
Slide 16: PAN India presence - Loan Assets
Figures in Rs. Crores PAN India J&K 10,207 Haryana 5,819 presence - Loan Himachal Pradesh 1,644 Assam Assets Punjab 6,629 Uttarakhand 3,030 557 Arunachal Pradesh Sikkim 1 UP 3,379 Lending across 28 States 48,784 Rajasthan Bihar 55,673 13,080 Nagaland State/ Joint Sector Borrowers 54 Manipur Rs. 4,50
Slide 17: Outstanding Loans – Major Borrowers
Outstanding Loans – Major Borrowers Major State Borrowers (as at December 31, 2023) Amount % of Total S. No. Top Ten Borrowers Outstanding Loan Assets (Rs. in Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 51,035 10.26 2 Maharashtra State Electricity Distribution Company Limite
Slide 18: Asset Quality
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Slide 19: Asset Quality as at December 31, 2023
Asset Quality as at December 31, 2023 Improving Asset Quality Provision Coverage Ratio 72% 4.50% 4.03% 70.64% 71% 70.46% 70.41% 3.63% 70% 3.42% 69.28% 69.11% 69.37% 3.50% 3.28% 69% 3.14% 2.78% 68% 67% 2.50% 66% 65% 1.50% 1.24% 1.12% 64% 1.01% 0.97% 0.96% 0.82% 63% 0.50% 62% Sep-22 Dec-22 Mar-23 Jun-
Slide 20: Loan Portfolio as at December 31, 2023
Loan Portfolio as at December 31, 2023 (Rs. in Crores) Credit Impaired Assets (Stage – III) Standard Assets (Stage – I & II) Loan Particulars0 Provision coverage Provision coverage Total ECL # O/s O/s ECL O/s ECL ratio (%) ratio (%) @ State Sector - Generation 1,22639 - - - 1,22,639 554 0.45 554 - R
Slide 21: Credit Impaired Assets – Resolution Status
Credit Impaired Assets – Resolution Status Rs.12,297 crores in NCLT Under NCLT 13 projects Resolution status 74% provision of Credit Impaired Assets Rs.1,514 crores resolution pursued outside NCLT Outside NCLT 3 projects 50% provision 21
Slide 22: Borrowing Profile
Borrowing Profile 22
Slide 23: Credit Ratings for Long Term Borrowings
Credit Ratings for Long Term Borrowings Long-term International Ratings Japan Credit Rating Agency, Ltd. Baa3 (Stable)–Key Highlights BBB- (Stable)–Key Highlights BBB+ (Stable)–Key Highlights REC plays a very important role in the implementation of the REC Limited (REC) remains strategically impor
Slide 24: Outstanding Borrowings
Outstanding Borrowings (Rs. in Crores) st st 31 December 31 March Particulars 2023 2023 Term Loans from Banks, Corporate Bonds 1,75,782 1,56,868 FIs, NSSF 20% Foreign Currency Borrowings 91,627 * 78,440 Corporate Tax Free Bonds FCNR (B) Loans 24,423 15,424 Bonds and 41% Capital Gain Bonds 41,132 37,
Slide 25: Funds Raised During the Period
Funds Raised During the Period (Rs. in Crores) Q3 9M 12M Category FY24 FY23 FY24 FY23 FY23 (A) Long Term Capital Gains Bonds 2,580 2,822 8,037 8,445 12,154 Institutional Bonds/ Subordinate Debt 14,640 11,055 33,072 13,793 25,545 Loans from Banks/FIs/ NSSF 8,200 6,660 19,500 16,050 22,911 Foreign Cur
Slide 26: Financial Highlights
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Slide 27: Key Financial Highlights for 9M FY24
Key Financial Highlights for 9M FY24 Total Income stands at Rs. 34,571 crores ( 19% YoY) Net Profit stands at Rs. 10,003 crores ( 24% YoY) Total Comprehensive Income Rs. 9,880 crores ( 53% YoY) Loan book reached to Rs. 4.97 lakh crores (21% YoY) Assets Quality improved with Net Credit impaired A
Slide 28: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Rs. in Crores Q3 9M 12 M Particulars FY 24 FY 23 FY 24 FY 23 FY 23 Interest Income on Loan assets 11,812 9,660 33,490 28,456 38,360 Less: Finance Costs * 7,659 6,139 22,069 17,252 23,738 Net Interest Income 4,153 3,521 11,421 11,204 14,622 Other Operating Income
Slide 29: Statement of Assets and Liabilities
Statement of Assets and Liabilities Rs. in Crores Particulars As at 31.12.2023 As at 31.12.2022 As at 31.03.2023 Assets (A) Financial Assets 5,29,899 4,35,235 4,60,591 Cash and bank balances 2,140 1,168 1,987 Derivative financial instruments 11,341 8,481 8,982 Loans (Ind-AS) 4,87,252 3,97,887 4,22,0
Slide 30: Key Ratios
Key Ratios Q3 9M 12M Particulars FY 24 FY 23 FY 24 FY 23 FY 23 Yield on Loan Assets (%) 10.13 9.92 9.98 9.90 9.73 Cost of Funds (%) 7.28 7.17 7.16 7.14 7.28 Interest Spread (%) 2.85 2.75 2.82 2.76 2.45 Net Interest Margin (%) 3.61 3.55 3.52 3.55 3.38 Return on Net Worth (%) 20.45 21.26 21.78 20.29 2
Slide 31: REC: Endless energy. Infinite possibilities.
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