Rec Limited · NSE:RECLTD
Rec — Q3 FY2024-25 Earnings Presentation
37 slides from Rec's earnings presentation, Feb 6, 2025
Slide 1: REC Limited Investor Presentation: Q3 & 9 Months FY 2024-25
REC Limited A Maharatna Company INVESTOR PRESENTATION PERFORMANCE HIGHLIGHTS Q3 & 9 MONTHS FY 2024-25
Slide 2: Table of Contents
1. REC Overview 2. Operational Performance 3. Asset Quality Table of 4. Borrowing Contents Profile 5. Financial Highlights 6. ESG 02
Slide 3: REC Overview
01 REC OVERVIEW • REC Journey • Key Strengths • Government’s Trusted Arm • Maharatna Status • Forayed into Infra Sector • Shareholders Outlook • Shareholders Outlook cont.. • Awards and Accolades 03
Slide 4: REC Journey
2024: Appointed as National programme implementing REC Journey 2022: Conferred agency for PM Surya Ghar Muft Bijli Yojana, Maiden Yen Bond ‘Maharatna’, highest issuance of JPY 61.1 Bn and status for a PSU. USD Bond issuance of $500 Mn Forayed into Infrastructure sector 2019: As Nodal Agency, achieve
Slide 5: Key Strengths
Key Strengths Experienced ‘Maharatna’ Company Management Team with and a strategic player in Sector Expertise the Indian Power, Infrastructure and Logistics Sector Nodal Agency for major Govt. of India’s power sector programmes – RDSS, Diversified Asset Base Saubhagya, DDUGJY, with robust Access to
Slide 6: Government’s Trusted Arm
Government’s Trusted Arm RDSS Rooftop Solar (RTS) SAUBHAGYA Programme REC NEF LPS DDUGJY Consumer Services Integrated Ratings of Rating Discoms of Discoms (Operational) (Financial) 06
Slide 7: Maharatna Status (accorded in FY 2022-23)
Maharatna Status (accorded in FY 2022-23) REC is amongst the Coveted Few Maharatna – Business advantages Indian PSUs Maharatna Gives greater operational & • Highest rank for top-performing PSUs in India financial autonomy • Total of 14 PSUs accorded this status Navratna • 2nd highest rank of top-per
Slide 8: Forayed into Infra Sector
Forayed into Infra Sector: For Nation’s Accelerated Development REC has diversified loan portfolio with a mandate of up to 33% loans in the Infrastructure and Logistics sector Health Sector Metro Ports Steel Infra Waterways REC IT Infra / Fiber Airport Optics Road & Highways Oil Refinery 08
Slide 9: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at December 31, 2024 Shareholding Pattern as at Shareholding Rank Particulars December 31, 2024 (%) 1 Power Finance Corporation Ltd 52.63 2 Government of Singapore 1.84 PFC HDFC Trustee Company Ltd. A/C HDFC Balanced 52.63% 3 1.41 Advantage Fund Nippon Lif
Slide 10: Shareholders Outlook Continued..
Shareholders Outlook Continued.. Dividend Payout as a % of Equity Share Capital Consistently high dividend paying company Earnings per Share ₹43.59 (Annualized ₹58.11) 175% 160.00% Book Value per Share ₹290.53 150% Consistent increase in share price from ₹ 412.85 as on December 29, 2023 to ₹500.
Slide 11: Awards and Accolades
Awards and Accolades Awarded ‘Gold Shield’ under the ‘Financial Services Sector (Other than Banking and Insurance)’ category ‘ICAI Awards for Excellence in Financial Reporting for the financial year 2023-24’. Golden Adam Smith CSR Award Excellence in Peacock Award from National Awards ASIA Green 2
Slide 12: Operational Performance
OPERATIONAL 02 PERFORMANCE • Sanctions • Disbursements • Outstanding loans • Pan India presence – Loan Assets • Outstanding Loans – Major Borrowers 12
Slide 13: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in Q3 FY 25 (₹ in crore) 12M Q3 9M Discipline-wise in FY24 % FY24 % FY25 % FY24 % FY25 % STL/MTL Generation 67,112 19 26,797 20 21794 26 63402 19 75673 28 6% Generation 26% Renewables Transmission Renewables incl incl Hydro 2% Large Hydro 1,36
Slide 14: Disbursements - Composition
Disbursements - Composition Sector-wise breakup of Disbursements in Q3 FY25 (₹ in crore) 12 M Q3 YTD (9 months) Discipline-wise Renewables incl Hydro FY 24 % FY 24 % FY 25 % FY 24 % FY 25 % Transmission 12% Generation 25,054 16 10,675 23 8,834 16 20,875 17 19,994 14 1% Renewables incl Large Generati
Slide 15: Outstanding Loans – Composition
Outstanding Loans – Composition State (₹ in crore) 88% As at 31st December 2024 31st March 2024 31st March 2023 Discipline-wise Amount % Amount % Amount % Private State 4,98,444 88 4,54,647 89 3,93,225 90 12% Transmission Private 67,177 12 54,724 11 41,787 10 Renewables incl Hydro 9% Total 5,65,621
Slide 16: PAN India presence – loan assets
(₹ in crore) J&K Haryana PAN India presence 10,996 6,781 Himachal Pradesh 1,551 – loan assets Assam 787 Punjab Uttarakhand Arunachal Pradesh 7,056 2,736 0 (0.46) Sikkim UP 3,268 Lending across 28 States 48,174 Rajasthan Bihar 63,458 14,249 State/ Joint Sector Borrowers Nagaland ₹4,98,444 crore 42 Ma
Slide 17: Outstanding Loans – Top 10 Major Borrowers
Outstanding Loans – Top 10 Major Borrowers Major State Borrowers as at December 31, 2024 Amount Outstanding % of Total S. No. Top Ten Borrowers (₹ in crore) Loan Assets 1 Tamil Nadu Generation and Distribution Corporation Limited 39,670 7.01 2 Maharashtra State Electricity Distribution Company Limit
Slide 18: Asset Quality
ASSET 03 QUALITY • Asset quality and provision coverage • Loan portfolio and ECL provisioning • Credit impaired assets and resolution status 18
Slide 19: Asset Quality and provisioning coverage
Asset Quality and provisioning coverage Improving Asset Quality Provision Coverage Ratio 70.46% 70.41% 3.50% 3.28% 69.37% 70% 68.45% 68.48% 3.14% 2.78% 65.12% 2.71% 65% 2.61% 2.53% 61.88% 2.50% 60% 1.95% 55% 1.50% 0.97% 50% 0.96% 0.82% 0.86% 0.82% 0.88% 0.74% 45% 0.50% Jun-23 Sep-23 Dec-23 Mar-24 Ju
Slide 20: Loan Portfolio and ECL provisioning
Loan Portfolio and ECL provisioning (₹ in crore) Loan Credit Impaired Assets (Stage – III) Standard Assets (Stage – I & II) Provision Provision Total ECL Particulars O/s O/s ECL coverage O/s ECL coverage ratio # ratio (%) (%) @ State Sector -Generation 1,34,447 - - - 1,34,447 1,324 0.98% 1,324 -Rene
Slide 21: Credit Impaired Assets – Resolution Status
Credit Impaired Assets – Resolution Status • ₹9,543 crore in NCLT Under NCLT • 13 projects • 68% provision Resolution status • ₹1,503 crore resolution of Credit Impaired pursued outside NCLT Outside NCLT • 1 project Assets • 50% provision Three assets having aggregate outstanding loan of ₹2,777 cror
Slide 22: Borrowing Profile
BORROWING 04 PROFILE • Credit ratings for long term borrowings • Outstanding borrowings • Funds raised during the period 22
Slide 23: Credit Ratings for Long Term Borrowings
Credit Ratings for Long Term Borrowings Long-term International Ratings Japan Credit Rating Agency 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 important t
Slide 24: Outstanding Borrowings
Outstanding Borrowings (₹ in crore) 31st Dec, 31st Dec, 31st Term Loans Zero Coupon Bonds Particulars 2024 2023 March,2024 from Banks, 0.56% FIs, NSSF (A) Domestic Borrowings Institutional 14.39% including Institutional including Subordinated Subordinated 2,04,622 1,75,782 1,81,471 Bonds Tax Free an
Slide 25: Funds Raised During the Period
Funds Raised During the Period (₹ in crore) Q3 9 months 12M Category FY25 FY24 FY25 FY24 FY24 (A) Long Term Capital Gains Bonds 1,545 2,580 5,799 8,037 11,421 Institutional Bonds/ Subordinate Debt 8,096 14,640 37,474 33,072 42,447 Zero Coupon Bonds* 2,712 - 2,712 - - Loans from Banks/FIs/ NSSF - 8,2
Slide 26: Financial Highlights
FINANCIAL 05 HIGHLIGHTS • Key Financial Highlights • Key Ratios • Standalone Statement of Profit & Loss • Standalone Statement of Assets and Liabilities 26
Slide 27: Key Financial Highlights for 9 Months FY25
Key Financial Highlights for 9 Months FY25 Highest Ever 9 months FY Profit of ₹11,477 crore Total Income stands at ₹40,805 crore vs ₹34,571 crore ( 18% YoY) Net Interest Income stands at ₹14,191 crore vs ₹11,422 crore ( 24% YoY) Net Profit stands at ₹11,477 crore vs ₹10,003 crore ( 15% YoY) Loan
Slide 28: Key Ratios
Key Ratios Q3 9 Months 12M Particulars FY 25 FY 24 FY 25 FY 24 FY 24 Yield on Loan Assets (%) 10.13 10.13 10.09 9.98 9.99 Cost of Funds (%) 7.18 7.28 7.15 7.16 7.13 Interest Spread (%) 2.95 2.85 2.94 2.82 2.86 Net Interest Margin (%) 3.66 3.61 3.64 3.52 3.57 Return on Net Worth (%) 21.58 20.45 21.07
Slide 29: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss (₹ in crore) Q3 9 Months 12M Particulars FY 25 FY 24 FY 25 FY 24 FY 24 Interest Income on Loan assets 13,771 11,812 39,569 33,490 45,659 Less: Finance Costs1 8,841 7,659 25,378 22,069 29,974 Net Interest Income 4,930 4,153 14,191 11,421 15,685 Other Operating In
Slide 30: Standalone Statement of Assets and Liabilities
Standalone Statement of Assets and Liabilities (₹ in crore) Particulars As at 31.12.2024 As at 31.12.2023 As at 31.03.2024 Assets (1) Financial Assets Cash and bank balances 1,450 2,140 2,499 Derivative financial instruments 16,977 11,341 12,482 Loans (Ind-AS) 5,57,738 4,87,252 4,99,192 Investments
Slide 31: ESG
06 ESG • ESG at REC Limited • ESG Highlights • REC’s Contribution for clean energy projects 31
Slide 32: ESG at REC Limited
ESG at REC Limited REC ESG Policy REC adopted board ESG Targets approved ESG policy. Assigned company wide ESG targets for ESG Gap Assessment 2023 quarterly compliance. New ESG related policies 2023 JAN JUNE introduced, More human rights and well being trainings 2024 FEB organized REC Net Zero Plan
Slide 33: ESG Highlights
ESG Highlights E S G ENVIRONMENTAL SOCIAL GOVERNANCE Targeting Net Zero in Scope 1&2 Total board level committees: 11 emissions Training man days in FY24: 1355 man days Board meetings held in FY24: 13 49 GW of Renewable Energy Corporate Social Responsibility (CSR): capacity supported Amount
Slide 34: REC’s Contribution for Clean Energy Projects
REC’s Contribution for Clean Energy Projects REC being the stepping stone for India’s energy transition, our lending strategies are tailored to align with India’s commitment to harnessing clean and green energy sources. Large Hydro 8671 MW Small Hydro Hybrid Pumped Storage Plant 505 4860 MW 7,370 MW
Slide 35: Investor Resources
Investor Resources Annual Report: https://recindia.nic.in/annual-reports Financial Results: https://recindia.nic.in/financial-results ESG Report: https://recindia.nic.in/sustainability-report Join us: @reclindia Investor Announcements: https://recindia.nic.in/notice https://recindia.nic.in/ Recent r
Slide 36: Contact Information
Contact Information Investor Relations/ 54EC & Other Bond Queries : Investorcell@recl.in Join us: @reclindia https://recindia.nic.in/ Equity Share Queries: Complianceofficer@recindia.com 36
Slide 37: Financing India's Power & Progress Story
FINANCING INDIA'S POWER & PROGRESS STORY