Slide 1: REC Limited Investor Presentation: Performance Highlights Q3 & 9M FY20
REC Limited (Formerly Rural Electrification Corporation Limited) A Navratna Company Investor Presentation Performance Highlights Q3 & 9M FY 20 REC bags the coveted ICAI award for Excellence in Financial Reporting for the year ended March 31, 2019 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 Management Team With Nodal Agency for Sector providing 24x7 Expertise quality power to all 600,000 K
Slide 5: Board of Directors
Board of Directors Experienced Team with sector experience Chairman and Managing Director on the Board of REC w.e.f. March 6, 2019 and also Director (Finance), REC Mr. Ajeet Kumar since August 1, 2012 Agarwal Experience in the field of Financial Management and Operations encompassing organizational
Slide 6: Board of Directors
Board of Directors Experienced Team with sector experience Ms. Asha Swarup Has served as Secretary Ministry of I&B, Special Secy./ Addl. Secy. & Financial Adviser in the Ministries of Commerce and Textiles. Chief Secretary, Principal Secy. in Departments of Finance, Health, Power, Home Independent D
Slide 7: Shareholding Pattern
Shareholding Pattern As at 30.09.2019 As at 31.12.2019 PFC, 52.63 PFC, 52.63 FPI, 28.93 FPI, 28.78 MFs, 7.15 MFs, 7.75 Others, 1.52 Others, 1.40 Individual/ Insurance Individual/ Insurance Corporates, Cos., 2.97 Corporates, Cos., 2.97 HUF, 5.81 HUF, 5.65 0.99 0.82 Foreign Portfolio Investors (FPIs)
Slide 8: Shareholders Outlook
Shareholders Outlook Top 10 Share holders as at Dec 31, 2019 Dividend Payout as a % of Equity Rank Particulars Shareholding Share Capital (%) Consistently high dividend paying company 1 Power Finance Corporation ltd 52.63 HDFC Trustee Company Ltd. A/C HDFC 125% 2 2.56 Balanced Advantage Fund 110.00%
Slide 9: Operational Performance
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Slide 10: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in Q3 & 9M FY20 Generation Project Loans 55% Sanctioned in STL 9M FY20 : Rs. 95,898 cr 1% T&D 37% Renewable 7% 12M Q3 9M Discipline-wise FY17 % FY 18 % FY 19 % FY 19 % FY 20 % FY 19 % FY 20 % Generation 28,209 34 53,224 49 43,282 37 14,832 52
Slide 11: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in Q3 & 9M FY20 STL Project Loans 3% Generation Disbursed in 32% 9M FY20 : Rs. 53,462 cr Distribution Renewable 37% 9% Transmission 19% 12M Q3 9M Discipline-wise FY 17 % FY18 % FY19 % FY 19 % FY 20 % FY 19 % FY 20 % Generation 21,697 3
Slide 12: Outstanding Loans – Composition
Outstanding Loans – Composition State STL Generation 81% 1% 41% Customer-wise Category-wise breakup breakup of Renewable of Loans as at Distribution Transmission Private Loans as at 34% Energy 31st Dec 2019 19% 12% Joint 31st Dec 2019 5% 7% As at st st st st Discipline-wise 31 March 2017 31 March 20
Slide 13: Outstanding Loans - Asset Diversification
J&K and Ladakh Haryana 236 5,937 Figures in Rs. Crores Himachal 1,026 Assam 585 Punjab Uttarakhand Arunachal 7,351 2,428 Outstanding Loans - UP 31,228 Sikkim 4,978 10 Asset Diversification Rajasthan 33,771 Bihar 12,639 PAN India Presence with loan concentration across Nagaland 27 states and 3 Union
Slide 14: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as on Dec 31, 2019) S.No. Top Ten Borrowers Amount % of Total Loan Outstanding Assets (Rs Cr.) 1 Maharashtra State Electricity Distribution Company Limited 21,560 7.01% 2 Tamil Nadu Generation and Distribution Corporation 16,578 5.39% 3 Maharash
Slide 15: Asset Quality
Asset Quality 15
Slide 16: Asset Quality & Provision Coverage
Asset Quality & Provision Coverage As at Dec 31, 2019 Figures : Rs. Crores Utility Total Loan Credit Impaired Assets (NPAs) Standard Assets Total Outstanding (Stage – III) (Stage – I & II) Provision* Outstanding Provision Provision coverage Outstanding Provision Provision coverage ratio (%) ratio (%
Slide 17: Borrowing Profile
Borrowing Profile Domestic Ratings “AAA” “AAA” “AAA” “AAA” International Ratings “BBB - ” “Baa3” 17
Slide 18: Outstanding Borrowings
Outstanding Borrowings Rs. Crores Particulars As at st st st st 31 March 2017 31 March 2018 31 March 2019 31 Dec 2019 Institutional, Subordinate 113,449 128,871 135,184 1,47,368 & Zero Coupon Bonds Foreign Currency Borrowings 21,081 25,996 29,710 40,578 FCNR (B) Loans - 3,811 5,048 6,058 Capital Gai
Slide 19: Outstanding Borrowings
Outstanding Borrowings Total Borrowings (Rs. Cr.) 1,67,517 1,98,791 239,286 262,740 % age 100% 7.6 6.4 5.3 4.8 3.3 1.3 1.6 1.9 90% 2.1 2.3 12.6 13.1 12.4 15.4 80% 0.4 0.2 70% 11.6 10.3 11.3 11.9 60% 10.0 8.7 50% 40% 67.8 64.9 30% 56.6 56.2 20% 10% 0% 2017 2018 2019 9M FY20 Taxable Bonds 54EC Bonds B
Slide 20: Funds Raised During The Period
Funds Raised During The Period Rs. Crores Category 12M Q3 9M FY17 FY18 FY19 FY19 FY20 FY19 FY20 (A) Long Term Capital Gains Bonds 7,663 9,565 6,652 1,554 1,597 4,453 4,453 Institutional Bonds/ Subordinate Debt 18,600 26,145 24,010 9,849 8,859 14,849 26,472 Term Loans from Banks/FIs/ NSSF - - 24,550
Slide 21: Funds Raised During The Period (Long Term)
Funds Raised During The Period (Long Term) Total Funds raised 28,495 47,406 64,946 52,202 (Rs. Cr.) % age 100% 7.8 90% 19.8 24.7 80% 37.8 26.9 70% 21.0 20.2 60% 15.0 8.5 50% 40% 10.2 65.3 30% 55.2 50.7 20% 37.0 10% 0% 2017 2018 2019 9M FY20 Taxable Bonds 54EC Bonds ECB Banks/ FIs/ NSSF 21
Slide 22: Financial Highlights
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Slide 23: Key Financial Highlights
Key Financial Highlights ❑ Total Income for Q3 FY20 and 9M FY20 stands at Rs. 7,653 crores (up 39% Y-o-Y) and Rs. 22,052 crores (up 15% Y-o-Y) respectively. ❑ PBT for Q3 FY20 stands at Rs. 2,343 crores (up 28% Y-o-Y) and for 9M FY 20 at Rs. 6,285 crores. ❑ PAT for Q3 FY20 stands at Rs. 1,642 crores
Slide 24: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Rs. Crores 12M Q3 9M Particulars FY 19 FY19 FY 20 FY19 FY 20 Interest Income on Loan assets 24,728 6,567 7,465 18,234 21,731 Less: Finance Costs 15,676 4,089 4,772 11,502 14,070 Net Interest Income 9,052 2,478 2,693 6,732 7,661 Other Operating Income 582 154 79
Slide 25: Statement of Assets and Liabilities
Statement of Assets and Liabilities Rs. Crores Particulars As at 31.03.2019 As at 31.12.2019 Assets (A) Financial Assets 2,94,590 323,923 Cash and Bank 343 2,186 Other Bank Balances 1,253 1,530 Derivative financial instruments 1,803 2,331 Loans 2,70,451 296,977 Investments 2,398 2,520 Other financia
Slide 26: Key Ratios
Key Ratios Q3 9M Particulars FY 19 FY 20 FY 19 FY 20 Yield on Interest bearing Loan Assets (%) 10.93 10.61 10.43 10.67 Cost of Funds (%) 7.39 7.34 7.20 7.47 Interest Spread (%) 3.54 3.27 3.23 3.20 Net Interest Margin (%) 4.13 3.83 3.85 3.76 Interest Coverage Ratio (Times) 1.45 1.49 1.56 1.45 Debt Eq
Slide 27: Thank You
Thank You 27