Slide 1: REC Limited Investor Presentation: Performance Highlights Q4 & 12M FY20
REC Limited (Formerly Rural Electrification Corporation Limited) A Navratna Company Investor Presentation Performance Highlights Q4 & 12M FY 20 ICAI award for Excellence in Financial Reporting (March 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 Registered as Management NBFC, PFI and Team With IFC with RBI and Sector Expertise a Notified Instit
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. June 1, 2020 and also Director (Technical), REC Mr. Sanjeev Kumar since October 16, 2015 Gupta Extensive experience in Planning, Design, Construction, O&M, Project Management of large
Slide 6: Board of Directors
Board of Directors Experienced Team with sector experience Shri Mritunjay Kumar Narayan is Indian Administrative Service (IAS) officer of 1995 Uttar Pradesh Cadre, is a Joint Mr. Mritunjay Kumar Secretary in Ministry of Power. On Board of REC since Sept 02, 2019. Previously, Secretary to the Hon’ble
Slide 7: Shareholding Pattern
Shareholding Pattern As at 31.12.2019 As at 31.03.2020 PFC, 52.63 PFC, 52.63 FPI, 28.78 FPI, 26.99 MFs, 7.75 MFs, 8.82 Others, 1.40 Others, 1.63 Individual/ Insurance Insurance Corporates, Individual/ Cos., 2.97 HUF, 5.65 Cos., 2.97 Corporates, 0.82 HUF, 6.00 0.96 Foreign Portfolio Investors (FPIs)
Slide 8: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at Mar 31, 2020 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 7.06 125% 3 Life Insurance Corporation Of India 2.7
Slide 9: Operational Performance
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Slide 10: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in Q4 & 12M FY20 Generation Total Sanctions FY20 52% ₹ 110,908 Crores Renewable 6% STL T&D 2% 40% (₹ in Crores) 12M Q4 Discipline-wise FY17 % FY 18 % FY 19 % FY 20 % FY 19 % FY 20 % Generation 28,209 34 53,224 49 43,282 37 57,362 52 6,920 31 4
Slide 11: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in Q4 & 12M FY20 STL Total Disbursements 3% Generation FY20 : ₹ 75,667 Crores 39% Distribution 33% Renewable 7% Transmission 18% (₹ in Crores) 12M Q4 Discipline-wise FY 17 % FY18 % FY19 % FY20 % FY 19 % FY 20 % Generation 21,697 37 18,
Slide 12: Outstanding Loans – Composition
Outstanding Loans – Composition State STL Generation 81% 0% 43% Distribution Transmission Renewable 33% 19% Energy Private 12% Joint 5% 7% (₹ in Crores) As at st st st st Discipline-wise 31 March 2017 31 March 2018 31 March 2019 31 March 2020 Amount % Amount % Amount % Amount % State 151,976 75 186,
Slide 13: Asset Diversification - PAN India Presence
J&K and Ladakh Haryana 341 5,651 Figures in ₹ Crores Himachal 1,024 Assam 577 Punjab Uttarakhand Arunachal Asset Diversification - 7,133 2,569 UP Sikkim 9 4,972 PAN India Presence Rajasthan 32,316 Bihar 35,378 12,643 Loan concentration across 27 States and 3 Union Territories Nagaland 101 Manipur 10
Slide 14: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as at March 31, 2020) Amount % of Total Loan S.No. Top Ten Borrowers Outstanding Assets (₹ Crores) 1 Maharashtra State Electricity Distribution Company Limited 21,574 6.69% 2 Tamil Nadu Generation and Distribution Corporation 17,803 5.52% 3 Maha
Slide 15: Asset Quality
Asset Quality 15
Slide 16: Asset Quality & Provision Coverage
Asset Quality & Provision Coverage As at March 31, 2020 Figures : ₹ Crores Credit Impaired Assets Standard Assets Total Loan (Stage – III) (Stage – I & II) Total Utility Outstanding Provision Provision coverage Provision* Outstanding Provision Outstanding Provision coverage ratio (%) ratio (%) State
Slide 17: Borrowing Profile
Borrowing Profile Domestic Ratings “AAA” “AAA” “AAA” “AAA” International Ratings “BBB - ” “Baa3” 17
Slide 18: Outstanding Borrowings
Outstanding Borrowings (₹ Crores) As at st st st st Particulars 31 March 31 March 31 March 31 March 2017 2018 2019 2020 Amount Amount Amount Amount % Institutional, Subordinate 113,449 128,871 135,184 158,148 56.5 & Zero Coupon Bonds Foreign Currency Borrowings 21,081 25,996 29,710 44,380 15.8 FCNR
Slide 19: Outstanding Borrowings
Outstanding Borrowings Total Borrowings (₹ Crores) 1,67,517 1,98,791 239,286 280,116 % age 100% 7.6 6.4 5.3 4.5 3.3 1.0 1.6 1.9 2.5 90% 2.1 12.6 15.8 13.1 12.4 80% 0.4 0.2 70% 11.6 10.3 11.7 11.9 60% 10.0 8.0 50% 40% 67.8 64.9 30% 56.6 56.5 20% 10% 0% 2017 2018 2019 2020 Taxable Bonds 54EC Bonds Ban
Slide 20: Funds Raised During The Period
Funds Raised During The Period (₹ Crores) 12M Q4 Category FY17 FY18 FY19 FY20 FY19 FY20 (A) Long Term Capital Gains Bonds 7,663 9,565 6,652 6,157 2,199 1,704 Institutional Bonds/ Subordinate Debt 18,600 26,145 24,010 42,713 9,161 16,241 Term Loans from Banks/FIs/ NSSF - - 24,550 14,725 10,550 4,400
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 75,998 (₹ Crores) % age 100% 7.8 90% 19.4 24.7 80% 37.8 26.9 70% 16.3 20.2 60% 8.1 15.0 50% 40% 10.2 65.3 30% 56.2 55.2 20% 37.0 10% 0% 2017 2018 2019 2020 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 Q4 FY20 and 12M FY20 stands at ₹ 7,895 crores (up 19% Y-o-Y) and ₹ 29,855 crores (up 18% Y-o-Y) respectively ❑ Net Interest Income Q4 FY20 and 12M FY20 stands at ₹ 2,749 crores (up 18% Y-o-Y) and ₹ 10,425 crores (up 15% Y-o-Y) respectively ❑ Loan book as a
Slide 24: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ Crores 12M Q4 Particulars FY 19 FY20 FY19 FY 20 Interest Income on Loan assets 24,728 29,422 6,493 7,691 Less: Finance Costs 15,642 18,997 4,161 4,942 Net Interest Income 9,086 10,425 2,332 2,749 Other Operating Income 582 369 117 149 Other Income 31 64 14 55
Slide 25: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ Crores Particulars As at 31.03.2019 As at 31.03.2020 Assets (A) Financial Assets 294,590 343,497 Cash and Bank 1,596 3,700 Derivative financial instruments 1,803 3,319 Loans (Ind-AS) 270,451 312,084 Investments 2,398 2,313 Other financial assets 18,342 22,081 (B
Slide 26: Key Ratios
Key Ratios 12M Particulars FY19 FY20 Yield on Loan Assets (%) 10.40 10.57 Cost of Funds (%) 7.16 7.31 Interest Spread (%) 3.24 3.26 Net Interest Margin (%) 3.85 3.74 Return on Net Worth (%) 17.31 14.09 Interest Coverage Ratio (Times) 1.52 1.37 Debt Equity Ratio (Times) 6.98 7.99 Earnings per Share (
Slide 27: Thank You
Thank You COVID ASSISTANCE: Food-grains : 4,77,798 kg Meals packages : 3,55,980 nos. PPE kits : 3,440 nos. Masks : 85,850 nos. Sanitisers : 9,888 litres & Continuing… 27