Slide 1: Management Presentation: Performance Highlights Q4 & 12M FY17
Rural Electrification Corporation Limited A Navratna PSU Management Presentation Performance Highlights Q4 & 12M FY 17
Slide 2: Table of Contents
Table of Contents India - Power Sector – Empowering India REC Overview Operational Performance Asset Quality Borrowing Profile Financial Highlights 2
Slide 3: India - Power Sector – Empowering India
India - Power Sector – Empowering India 3
Slide 4: Generation
Generation Installed Capacity 327 GW Generating Generation Stations 900 Units 2200 Generation Peak Demand Average 160 GW PLF 63% Source : POSOCO & CEA 4
Slide 5: Transmission
Transmission Transmission Lines 3,67,851 CKM 7000 Transformation Substations Capacity 7,40,765 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 6
Slide 7: “Power for All” - Demand by 2021-22 (MW)
“Power for All” - Demand by 2021-22 (MW) 54% Source : CEA 7
Slide 8: “Power for All”- Installed Capacity by 2021-22
“Power for All”- Installed Capacity by 2021-22 (MW) 327 GW 540 GW 38% 183% 48% 49% 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
“Power for All” - Transmission Line Capacity by 2021-22 (CKM) 28% 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
“Power for All” - Transformation Capacity by 2021-22 (MVA) 32% 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 Power for All 19.9 Hrs 12
Slide 13: REC Overview
REC Overview 13
Slide 14: Key Strengths
Key Strengths 1 2 Occupies Strategic Position in the Growth and development of the Strong Fundamentals Power Sector across and Profitable Business India 8 Nodal Agency for Unique and close 3 providing 24x7 quality relationship with all power to all 600,000 major players – Public & villages of India
Slide 15: Major Milestones in Long & Successful journey of ~48 years
Major Milestones in Long & Successful journey of ~ 48 years Jan’ 2017 : CPSE ETF Further Fund Offer (FFO); GoI holding reduced to 59.36%. Mar’ 2017 : CPSE ETF FFO - 2; GoI holding reduced to 58.86%. 2015 : Govt. of India (GoI) through an Offer for Sale (OFS) divested 5% of its holding; Oversubscribe
Slide 16: 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 17: 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 18: Shareholding Pattern
Shareholding Pattern * Post CPSE ETF FFOs in Jan’17 and Mar’17, GoI holding was reduced by 1.28% and 0.50% respectively. GoI holding as on date stands at 58.86%. 18
Slide 19: Shareholding Pattern
Shareholding Pattern Top 10 Share holders as at March 31, 2017 Rank Particulars Shareholding (%) Category 1 President of India 58.86 POI 2 Life Insurance Corporation of India 5.46 Insurance 3 The Prudential Assurance Company Limited 1.97 FPI 4 CPSE ETF 1.47 Mutual Fund 5 Morgan Stanley Mauritius Com
Slide 20: Performance of REC’s Share Price vis-à-vis Major Indices in Last 1 Year
Performance of REC’s Share Price vis-à-vis Major Indices in Last 1 Year Source REC Share & Nifty : NSE BSE Sensex : BSE REC’s stock is being included in Morgan Stanley Capital International (MSCI) India Index as per announcement on May 16 with effective date for the rebalancing to be June 1, 2017 an
Slide 21: Operational Performance
Operational Performance 21
Slide 22: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in 12M FY17 Rs. Crores 12M Q4 Discipline-wise FY 14 FY15 FY16 FY17 FY 16 FY 17 28 % Generation 29,019 24,326 30,794 30,299 6,398 5,845 12M YoY T&D 39,446 35,135 31,377 49,047 7,561 20,599 Short Term Loan 2,275 1,960 3,300 4,525 2,250 650 Sanct
Slide 23: Sanctions - Composition
Sanctions - Composition Major Projects Sanctioned in 12M FY17 (More than Rs. 1,000 cr) Project Borrower Category Amt (Rs. Cr) Gujarat State Electricity Thermal Refinancing Power Assets. 5,025 Corporation Limited (GSECL) Projects Tamil Nadu Generation and 1X800 MW Coal based Supercritical Project at
Slide 24: Disbursements - Composition
Disbursements - Composition Sector-wise breakup of Disbursements in 12M FY17 Rs. Crores 12M Q4 Discipline-wise FY 14 FY 15 FY 16 FY 17 FY16 FY17 Generation 12,989 14,123 13,124 23,315 4,762 6,950 Transmission 4,113 6,286 8,529 10,520 2,949 4,767 26 % 12M YoY Distribution 16,855 20,159 22,173 19,429
Slide 25: Outstanding Loans – Composition
Outstanding Loans – Composition Customer-wise breakup of Loans as at 12M FY17 Category-wise breakup of Loans as at 12M FY17 Rs. Crores 12M Discipline-wise FY 14 FY 15 FY 16 FY 17 Amount % Amount % Amount % Amount % State 1,11,179 75 1,33,712 75 1,53,941 77 1,51,976 75 Joint 13,302 9 14,629 8 16,808
Slide 26: Outstanding Loans - Asset Diversification
Outstanding Loans - Asset Diversification PAN India Presence with loan concentration across 28 states and 1 Union Territory J&K 361 Himachal Haryana 550 5,656 Punjab Uttarakhand 255 7,938 2,232 Assam Arunachal Rajasthan 25 Bihar 18,819 UP 10,037 1,270 20,207 Sikkim Madhya Pradesh Nagaland 105 4,998
Slide 27: Outstanding Loans - Loan Concentration
Outstanding Loans - Loan Concentration Major Borrowers (as on March 31, 2017) Amount Outstanding % of Total Loan S.No. Top Ten Borrowers (Rs/ Cr.) Assets 1 Maharashtra State Power Generation Company Limited 13,469 6.67% 2 Maharashtra State Electricity Distribution Company Limited 9,675 4.79% 3 Rajas
Slide 28: Asset Quality
Asset Quality 28
Slide 29: Asset Quality – NPA position
Asset Quality – NPA position Non-Performing Loan Assets Figures : Rs. Crores 12M Particulars FY 14 FY 15 FY 16 FY 17 Loan outstanding 1,48,641 1,79,647 2,01,278 2,01,929 Gross NPA 490 1,335 4,243 4,873 Provision 137 365 1,013 1,636 Net NPA 353 970 3,230 3,237 29
Slide 30: Asset Quality - Restructured Loan Assets
Asset Quality - Restructured Loan Assets Rs. Crores Public (State) Rs. Crores Private Rs. Crores Total Restructured Loans Provision Figures : Rs. Crores 12M Particulars FY 15 FY 16 FY 17 Public (State Sector) 11,682 12,470 10,925 Provision - Public 321 436 475 Private 4,746 8,588 12,571 Provision -
Slide 31: Borrowing Profile
Borrowing Profile 31
Slide 32: Outstanding Borrowings
Outstanding Borrowings (Rs. Cr.) 1,26,240 1,51,024 1,69,106 1,67,517 % age Approx. 88% of the ECBs are Hedged till maturity. Average maturity period of the outstanding borrowings is approx. 4.23 years 32
Slide 33: Outstanding Borrowings
Outstanding Borrowings Rs. Crores 12M Particulars FY 14 FY 15 FY 16 FY 17 Institutional, Subordinate & Zero Coupon 75,289 97,068 1,09,678 1,13,449 Bonds Foreign Currency Borrowings 17,621 24,028 21,924 21,081 Capital Gain Bonds 15,493 15,591 17,164 19,477 Tax Free Bonds 11,649 11,649 12,648 12,648 C
Slide 34: Funds Raised During The Period
Funds Raised During The Period (Rs. Cr.) 31,948 41,190 31,255 28,495 % age 34
Slide 35: Funds Raised During The Period
Funds Raised During The Period Rs. Crores 12M Q4 Category FY14 FY15 FY16 FY17 FY16 FY 17 (A) Long Term Capital Gains Bonds 5,350 5,338 6,477 7,663 2,251 2,151 Tax Free Bonds 6,000 - 1,000 - - - Institutional Bonds/ Subordinate Debt 17,403 29,200 15,526 18,600 2,895 9,980 Banks, FIs, etc. 1,195 - - -
Slide 36: Financial Highlights
Financial Highlights 36
Slide 37: Key Financial Highlights
Key Financial Highlights Total Income for 12M FY17 increased to Rs. 24,096 cr against 12M FY16 of Rs. 23,757 cr. registering an increase of 1%. PBT for 12M FY17 increased to Rs. 8,861 cr against 12M FY16 of Rs. 8,045 cr. registering an increase of 10%. PAT for 12M FY17 increased to Rs. 6,246 c
Slide 38: Key Financial Highlights
Key Financial Highlights Yield on Loan Assets & Cost of Funds Yield = Ratio of interest income to average loan assets Cost of funds = Ratio of finance costs to average borrowings, without foreign exchange fluctuation loss amortized. Interest Spreads & Net Interest Margins Interest Spread = Yield min
Slide 39: 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 39
Slide 40: 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 40
Slide 41: 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. 41
Slide 42: Standalone Balance Sheet (abridged)
Standalone Balance Sheet (abridged) 12M Particulars FY 14 FY 15 FY 16 FY 17 Liabilities 16 % Shareholders Funds 20,669 24,857 28,618 33,326 YoY Borrowings 1,26,240 1,51,024 1,69,106 1,67,517 Deferred Tax Liabilities Net Worth 174 107 50 40 Rs. 33,326 cr. (Net) Other Liabilities 5,770 7,187 8,579 8,3
Slide 43: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement 12M Q4 Particulars FY14 FY15 FY16 FY 17 FY 16 FY 17 1% Interest Income 16,806 20,072 23,471 22,936 6,015 5,717 12M YoY Less: Finance Costs 10,039 11,845 14,283 13,775 3,753 3,423 Net Interest Income 6,767 8,227 9,188 9,161 2,262 2,294 Total Income Other Operating I
Slide 44: Any Question, Please?
Any Question, Please? >. 44