Slide 1: Investor Presentation: Performance Highlights Q2 and H1 FY 23
amg tt qu REC REC Limited A Maharatna Company Investor Presentation Performance Highlights Q2 and H1 FY 23
Slide 2: Table of Contents and Disclaimer
angtt REC vetion a ae ae Endless energy infinite posses, Table of Contents 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 (“REC”), nor shall part, or all, of this pres
Slide 3: REC Overview
REC Overview 3
Slide 4: angat
angat REC nities a, a aT Endless energy. nite posses Awarded BEST PSU by Dun & Bradstreet (| Moneycontrol TOP 20 ai by Net Profit }j Experienced Management Team With Sector Expertise Occupies Strategic Position in the Growth and development of the Power Sector across India Highest Domestic Rating of
Slide 5: REC is now a Maharatna Company
= Azadi xa Amrit Mahotsav The jewel that illuminates the nation shines even brighter REC IS NOW A MAHARATNA COMPANY "Accorded Maharatna Status on 21* September 2022". Maharatna - Business advantages. v Give greater operational & financial autonomy. v Allows strategic investments by incorporating JVs
Slide 6: Shareholding Pattern
Shareholding Pattern As at 30.06.2022 As at 30.09.2022 PFC, 52.63 PFC, 52.63 FPI, 23.43 FPI, 23.40 MFs, 9.24 MFs, 7.94 Others, 4.44 Insurance Others, 1.18 Insurance Cos., 0.18 Cos., 3.85 Individual/ Corporates, Corporates, Individual/ HUF, 9.82 1.27 1.07 HUF, 9.73 Foreign Portfolio Investors (FPIs)
Slide 7: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at September 30, 2022 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 6.94 175% 3 The WindAcre Partnership Master Fu
Slide 8: Operational Performance
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Slide 9: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in H1 FY 23 Conventional Renewable Generation 7% 26% STL 5% T&D 62% (₹ in Crores) 12M Q2 H1 Discipline-wise FY 20 % FY 21 % FY 22 % FY 22 % FY 23 % FY 22 % FY 23 % Conventional Generation (including 57,362 52 44,301 28 16,081 30 3,185 19 2,330
Slide 10: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in H1 FY 23 Conventional Generation Renewable 21% 28% Transmission STL 6% 6% Distribution 39% (₹ in Crores) 12M Q2 H1 Discipline-wise FY20 % FY21 % FY 22 % FY 22 % FY 23 % FY 22 % FY 23 % Conventional 28,488 38 28,876 31 20,750 32 4,73
Slide 11: Outstanding Loans – Composition
Outstanding Loans – Composition State 90% Distribution 40% STL 1% Transmission 13% Conventional Generation Private Renewable 40% 10% 6% (₹ in Crores) As at st st st th Discipline-wise 31 March 2020 31 March 2021 31 March 2022 30 September 2022 Amount % Amount % Amount % Amount % State 2,84,644 88 3,
Slide 12: Asset Diversification - PAN India Presence
J&K Haryana Figures in ₹ Crores 4,427 5,425 Himachal Pradesh 1,546 Assam 516 Punjab Uttarakhand Arunachal Pradesh Asset Diversification - 5,969 2,976 UP Sikkim 2 3,981 PAN India Presence Rajasthan 48,529 Bihar 42,317 10,595 Lending across 27 States and 2 Union Territories Nagaland 73 Manipur 229 Guj
Slide 13: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as at September 30, 2022) Amount % of Total S. No. Top Ten Borrowers Outstanding Loan Assets (₹ in Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 37,454 9.50% 2 Uttar Pradesh Power Corporation Limited 19,896 5.04% 3 Telanga
Slide 14: Asset Quality
Asset Quality 14
Slide 15: Asset Quality as at September 30, 2022
Asset Quality as at September 30, 2022 Improving Asset Quality Provision Coverage Ratio 72% 6% 71% 70% 5% 69.28% 5.07% 4.45% 4.41% 69% 4.03% 68.08% 4% 68% 67.40% 67% 3% 65.72% 66% 65% 2% 1.45% 1.41% 1.24% 64% 1.74% 1% 63% Dec-21 Mar-22 Jun-22 Sep-22 Dec-21 Mar-22 Jun-22 Sep-22 Gross Credit-impaired
Slide 16: Loan Portfolio as at September 30, 2022
Loan Portfolio as at September 30, 2022 Figures : ₹ in Crores Credit Impaired Assets Standard Assets (Stage – III) (Stage – I & II) Total Particulars Loan O/s Provision Provision ECL* O/s ECL coverage ratio O/s ECL coverage ratio (%) (%) State Sector - Generation 1,35,480 - - - 1,35,480 988 0.73 988
Slide 17: Credit Impaired Assets – Resolution Status
Credit Impaired Assets – Resolution Status Rs.10,869 crores in NCLT Under NCLT 11 projects 77% provision Resolution status of Credit Impaired Assets Rs.5,010 crores resolution pursued outside NCLT Outside NCLT 12 projects Highest Domestic Rating of “AAA”; Major Player in 53% provision International
Slide 18: Borrowing Profile
Borrowing Profile Domestic Credit Ratings for Long Term Borrowings “AAA” “AAA” “AAA” “AAA” International Issuer Ratings “BBB- ” “Baa3” 18
Slide 19: Outstanding Borrowings
Outstanding Borrowings (₹ in Crores) As at st st st th Particulars 31 March 2020 31 March 2021 31 March 2022 30 September 2022 Amount Amount Amount Amount % Corporate Bonds 158,148 179,989 152,692 146,582 44 Foreign Currency Borrowings 44,380 47,487 65,957 70,950 21 FCNR (B) Loans 6,973 5,329 9,855
Slide 20: Funds Raised During The Period
Funds Raised During The Period (₹ in Crores) 12M Q2 H1 Category FY20 FY21 FY22 FY22 FY23 FY22 FY23 (A) Long Term Capital Gains Bonds 6,157 5,312 7,316 1,816 2,953 3,104 5,623 Institutional Bonds/ Subordinate Debt 42,713 48,660 9,080 - 2,738 4,000 2,738 Loans from Banks/FIs/ NSSF 14,725 21,053 25,850
Slide 21: Funds Raised During The Period (Long Term)
Funds Raised During The Period (Long Term) Total Funds raised 75,998 89,872 61,929 21,319 (₹ Crores) % age 100% 90% 19.4 23.5 80% 41.8 44.1 70% 16.3 16.5 60% 8.1 5.9 50% 16.7 40% 31.8 30% 56.2 54.1 26.4 20% 11.8 10% 14.6 12.8 0% 2020 2021 2022 H1 2023 Taxable Bonds 54EC Bonds FCB Banks/ FIs/ NSSF 20
Slide 22: Financial Highlights
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Slide 23: Key Financial Highlights for H1 FY23
Key Financial Highlights for H1 FY23 ❑ Total Income stands at ₹ 19,417 crores. ❑ Net Profit stands at ₹ 5,176 crores ( 4% YoY). ❑ Loan book reached to ₹ 3.94 lakh crores (2% YoY) ❑ Assets Quality improved with Net Credit impaired Assets at 1.24% (vs. 1.52% YoY) ❑ Provision Coverage Ratio against C
Slide 24: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ in Crores Q2 H1 Particulars FY 22 FY 23 FY 22 FY 23 Interest Income on Loan assets 9,724 9,688 19,161 19,062 Less: Finance Costs ** 5,564 5,730 11,160 11,112 Net Interest Income 4,160 3,958 8,001 7,950 Other Operating Income 190 44 340 100 Net notional gain/ (
Slide 25: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ in Crores Particulars As at 31.03.2022 As at 30.06.2022 As at 30.09.2022 Assets (A) Financial Assets 406,417 409,302 419,846 Cash and bank balances 2,422 1,325 4,511 Derivative financial instruments 5,510 6,577 7,437 Loans (Ind-AS) 371,931 374,578 380,964 Invest
Slide 26: Key Ratios
Key Ratios Q2 H1 Particulars FY 22 FY 23 FY 22 FY 23 Yield on Loan Assets (%) 10.49 9.98 10.41 9.99 Cost of Funds (%) 6.85 7.07 6.94 6.99 Interest Spread (%) 3.64 2.91 3.47 3.00 Net Interest Margin (%) 4.41 3.73 4.22 3.75 Return on Net Worth (%) 23.44 20.58 21.87 19.82 Interest Coverage Ratio (Times
Slide 27: Thank You
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