Rec Limited · NSE:RECLTD
Rec — H1 FY2023-24 Earnings Presentation
31 slides from Rec's earnings presentation, Nov 1, 2023
Slide 1: REC Limited Investor Presentation: Performance Highlights H1 FY 2023-24
REC Limited A Maharatna Company Investor Presentation Performance Highlights for H1 FY 2023-24 Energizing and Empowering India Since 1969 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 1969: Journey began 2017: First Indian PSU 2008: Conferred 2021: Appointed as to develop power 1998: Registered as to issue USD Green Navratna status, Floated Nodal Agency for infrastructure in NBFC with RBI Bonds on London IPO subscribed 27 times RDSS rural areas Stock Exchang
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 ‘Golden Peacock ‘Best PSU' ‘Ranked 53rd' Award' In the Financial In Fortune For Risk Services India 500 Management category by (FY 22) (FY 23) Dun & Bradstreet ‘Golden Peacock 'Operational India's Top 20 Performance Excellence' Award' For Awarded by Excellence in Profitable Indi
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 Metro Road & Highways Diversifying the Loan Profile Ports Waterways IT Infra/Fiber Optics REC is now lending to Infrastructure and Logistics sector Airport Steel Infra Oil Refinery Health Sector 8
Slide 9: Government’s Trusted Arm
Government’s Trusted Arm Consumer Service Ratings of Discoms (Operational) Annual Integrated Regulatory Rating of Parameters Discoms (Financial) NEF RDSS LPS- financial DDUGJY disruptive/ Cost of operation SAUBHAGYA 9
Slide 10: Shareholders Outlook
Shareholders Outlook Shareholding Pattern Book Value as at 30.09.2023 EPS Per Share PFC, 52.63 FPI/ FII, (Annualized) Rs. 239.70 20.36 Rs. 51.14 Share price rallied from Second Interim Rs. 115.45 as on Dividend for Mar 31, 2023 to Others, Insurance Rs. 287.40 as on FY24 1.43 Cos., 4.24 Sept. 29, 202
Slide 11: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at September 30, 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 Trustee Company Limited 3.93 125% Nippon Life India Trustee L
Slide 12: Operational Performance
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Slide 13: Sanctions - Composition
Sanctions - Composition (Rs. in Crores) Sector-wise breakup of Sanctions in Q2 FY 24 12M Q2 H1 Discipline-wise FY 23 % FY 23 % FY 24 % FY 23 % FY 24 % Renewables incl Hydro 19 Generation Generation 31,253 12 1,732 2 21,085 20 25,344 18 36,604 24% 20% Renewables incl Large 21,279 8 1,821 2 24,944 24
Slide 14: Disbursements – Composition
Disbursements – Composition (Rs. in Crores) Sector-wise breakup of Disbursements in Q2 FY 24 12M Q2 H1 Discipline-wise Generation FY 23 % FY 23 % FY 24 % FY 23 % FY 24 % Renewables incl Hydro 14% 10% Generation 18,754 19 4,334 24 5,713 14 6,042 20 10,200 13 STL/MTL Renewables incl Large 11,226 12 1,
Slide 15: Outstanding Loans – Composition
Outstanding Loans – Composition (Rs. in Crores) As at State Discipline-wise th 30 September 2023 st 31 March 2023 st 31 March 2022 90% Amount % Amount % Amount % State 4,29,140 90 3,93,225 90 3,50,456 91 Private Private 45,135 10 41,787 10 34,915 9 10% Total 4,74,275 100 4,35,012 100 3,85,371 100 Ge
Slide 16: PAN India presence - Loan Assets
Figures in Rs. Crores PAN India J&K 10,845 Haryana 6,728 presence - Loan Himachal Pradesh 1,641 Assam Assets Punjab 6,408 Uttarakhand 3,083 569 Arunachal Pradesh Sikkim 1 UP 3,403 Lending across 28 States 48,684 Rajasthan Bihar 51,917 14,077 Nagaland State/ Joint Sector Borrowers 57 Manipur Rs. 4,29
Slide 17: Outstanding Loans – Major Borrowers
Outstanding Loans – Major Borrowers Major State Borrowers (as at September 30, 2023) Amount % of Total S. No. Top Ten Borrowers Outstanding Loan Assets (Rs. in Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 45,018 9.49 2 Maharashtra State Electricity Distribution Company Limite
Slide 18: Asset Quality
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Slide 19: Asset Quality as at September 30, 2023
Asset Quality as at September 30, 2023 Improving Asset Quality 72% Provision Coverage Ratio 4.50% 4.03% 71% 70.64% 70.46% 3.63% 70% 69.28% 69.11% 69.37% 3.42% 69% 3.50% 3.28% 3.14% 68% 67% 66% 2.50% 65% 64% 1.50% 1.24% 63% 1.12% 1.01% 0.97% 0.96% 62% 61% 0.50% 60% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23
Slide 20: Loan Portfolio as at September 30, 2023
Loan Portfolio as at September 30, 2023 (Rs. in Crores) Credit Impaired Assets (Stage – III) Standard Assets (Stage – I & II) Loan Particulars Provision coverage Provision coverage Total ECL # O/s O/s ECL O/s ECL ratio (%) ratio (%) @ State Sector - Generation 1,14,946 - - - 1,14,946 517 0.45 517 -
Slide 21: Credit Impaired Assets – Resolution Status
Credit Impaired Assets – Resolution Status Rs.13,008 crores in NCLT Under NCLT 14 projects Resolution status 73% provision of Credit Impaired Assets Rs.1,884 crores resolution pursued outside NCLT Outside NCLT 5 projects 42% provision 21
Slide 22: Borrowing Profile
Borrowing Profile 22
Slide 23: Credit Ratings for Long Term Borrowings
Credit Ratings for Long Term Borrowings Highest Domestic Credit Ratings Rating for Perpetual Debt Instruments upgraded to “AAA” by CARE Ratings during “AAA” “AAA” “AAA” “AAA” the current quarter International Issuer Ratings at par with Sovereign Rating “BBB- (Stable)” “Baa3 (Stable)” 23
Slide 24: Outstanding Borrowings
Outstanding Borrowings (Rs. in Crores) Particulars 30th September 2023 31st March 2023 Term Loans from Banks, FIs, NSSF 20% Corporate Bonds 1,61,141 1,56,868 Corporate Bonds 39% Foreign Currency Borrowings 96,553 78,440 FCNR (B) Loans 22,416 15,424 Tax Free Bonds and Infra Bonds Capital Gain Bonds 4
Slide 25: Funds Raised During the Period
Funds Raised During the Period (Rs. in Crores) Q2 H1 12M Category FY24 FY23 FY24 FY23 FY23 (A) Long Term Capital Gains Bonds 2,914 2,953 5,457 5,623 12,154 Institutional Bonds/ Subordinate Debt 3,590 2,738 18,432 2,738 25,545 Loans from Banks/FIs/ NSSF 3,000 7,240 11,300 9,390 22,911 Foreign Currenc
Slide 26: Financial Highlights
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Slide 27: Key Financial Highlights for H1 FY24
Key Financial Highlights for H1 FY24 Total Income stands at Rs. 22,571 crores ( 16% YoY) Net Profit stands at Rs. 6,734 crores ( 30% YoY) Total Comprehensive Income Rs. 7,331crores ( 99% YoY) Loan book reached to Rs. 4.74 lakh crores (20% YoY) Assets Quality improved with Net Credit impaired Ass
Slide 28: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Rs. in Crores Q2 H1 Particulars FY 24 FY 23 FY 24 FY 23 Interest Income on Loan assets 11,213 9,534 21,678 18,796 Less: Finance Costs * 7,357 5,730 14,410 11,112 Net Interest Income 3,856 3,804 7,268 7,684 Other Operating Income 259 199 519 366 Net notional gain
Slide 29: Statement of Assets and Liabilities
Statement of Assets and Liabilities Rs. in Crores Particulars As at 30.09.2023 As at 30.09.2022 As at 31.03.2023 Assets (A) Financial Assets 5,08,744 4,19,847 4,60,591 Cash and bank balances 6,603 4,511 1,987 Derivative financial instruments 11,354 7,437 8,982 Loans (Ind-AS) 4,63,096 3,80,964 4,22,0
Slide 30: Key Ratios
Key Ratios Q2 H1 12M Particulars FY 24 FY 23 FY 24 FY 23 FY 23 Yield on Loan Assets (%) 9.97 9.98 9.90 9.99 9.73 Cost of Funds (%) 7.23 7.07 7.17 6.99 7.28 Interest Spread (%) 2.74 2.91 2.73 3.00 2.45 Net Interest Margin (%) 3.45 3.73 3.41 3.75 3.38 Return on Net Worth (%) 24.34 20.58 22.30 19.82 20
Slide 31: ats at
ats at REC sreifaa Sol, ate eareare Endless energy. Infinite possibilities. 31