Slide 1: Investor Presentation: Performance Highlights Q3 & 9M FY22
REC Limited A Navratna Company Investor Presentation Performance Highlights Q3 & 9M FY 22 More than 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 Occupies Strategic relationship with all Position in the Growth major players – and development of Public & Private - in the Power Sector across Indian Power sector India Registered as Experienced NBFC, PFI and Management IFC with RBI and Team With a Notified Sector Institution to i
Slide 5: Shareholding Pattern
Shareholding Pattern As at 30.09.2021 As at 31.12.2021 PFC, 52.63 PFC, 52.63 FPI, 26.82 FPI, 24.85 MFs, 9.29 MFs, 9.75 Others, 4.48 Insurance Insurance Others, 4.46 Cos., 0.12 Cos., 0.11 Individual/ Corporates, HUF, 6.08 Individual/ Corporates, 0.58 HUF, 7.40 0.80 Foreign Portfolio Investors (FPIs)
Slide 6: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at December 31, 2021 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 8.16 150% 3 The WindAcre Partnership Master Fun
Slide 7: Operational Performance
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Slide 8: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in Q3& 9M FY 22 Generation Total Sanctions 32% Renewable during 9M FY22 24% Rs. 43,597 crores T&D 44% (₹ in Crores) 12M Q3 9M Discipline-wise FY 19 % FY 20 % FY 21 % FY 21 % FY 22 % FY 21 % FY 22 % Generation 43,282 37 57,362 52 44,301 29 16,6
Slide 9: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in Q3 & 9M FY 22 STL Renewable 4% Total Disbursements 8% Generation during 9M FY22 30% Rs. 48,664 crores Transmission 14% Distribution 44% (₹ in Crores) 12M Q3 9M Discipline-wise FY19 % FY20 % FY21 % FY 21 % FY 22 % FY 21 % FY 22 % Gen
Slide 10: Outstanding Loans – Composition
Outstanding Loans – Composition State STL 86% Generation 1% 40% Renewable Transmission Energy Distribution 17% 3% Private 39% 10% Joint 4% (₹ in Crores) 0% As at st st st st Discipline-wise 31 March 2019 31 March 2020 31 March 2021 31 December 2021 Amount % Amount % Amount % Amount % State 2,26,681
Slide 11: Asset Diversification - PAN India Presence
J&K Haryana Figures in ₹ Crores 3,084 5,269 Himachal Pradesh 1,424 Assam 568 Punjab Uttarakhand Arunachal Pradesh Asset Diversification - 5,688 2,991 UP Sikkim 3 4,923 PAN India Presence Rajasthan 52,687 Bihar 36,883 10,760 Lending across 27 States and 2 Union Territories Nagaland 79 Manipur 150 Guj
Slide 12: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as at December 31, 2021) Amount % of Total S. No. Top Ten Borrowers Outstanding Loan Assets (₹ in Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 36,913 9.50% 2 Uttar Pradesh Power Corporation Limited 21,220 5.46% 3 Maharash
Slide 13: Asset Quality
Asset Quality 13
Slide 14: Asset Quality as at December 31, 2021
Asset Quality as at December 31, 2021 Stable Asset Quality Provision Coverage Ratio 70% 6% 67.63% 66.48% 5.10% 5.07% 65.72% 4.80% 64.59% 5% 4.70% 65% 4.84% 4% 61.87% 60% 3% 1.95% 55% 2% 1.74% 1.61% 1.52% 1.71% 1% Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 50% Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Gross Credit-
Slide 15: Loan Portfolio as at December 31, 2021
Loan Portfolio as at December 31, 2021 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 - Gencos 1,30,288 - - - 1,30,288 880 0.67 880 - Re
Slide 16: Credit Impaired Assets – Resolution Status
Credit Impaired Assets – Resolution Status Rs.12,365 crores in NCLT Under NCLT 15 projects 72% provision Resolution status of Credit Impaired Assets Rs.7,350 crores resolution pursued outside NCLT Outside NCLT 13 projects Highest Domestic Rating of “AAA”; Major Player in 55% provision International
Slide 17: Borrowing Profile
Borrowing Profile Domestic Credit Ratings for Long Term Borrowings “AAA” “AAA” “AAA” “AAA” International Issuer Ratings “BBB- ” “Baa3” 17
Slide 18: Outstanding Borrowings
Outstanding Borrowings (₹ in Crores) As at st st st st Particulars 31 March 2019 31 March 2020 31 March 2021 31 December 2021 Amount Amount Amount Amount % Corporate Bonds 135,184 158,148 179,989 163,857 49 Foreign Currency Borrowings 29,710 44,380 47,487 64,162 19 FCNR (B) Loans 5,048 6,973 5,329 8
Slide 19: Funds Raised During The Period
Funds Raised During The Period (₹ in Crores) 12M Q3 9M Category FY19 FY20 FY21 FY21 FY22 FY21 FY22 (A) Long Term Capital Gains Bonds 6,652 6,157 5,312 1,210 1,700 3,047 4,803 Institutional Bonds/ Subordinate Debt 24,010 42,713 48,660 12,359 5,080 34,213 9,080 Loans from Banks/FIs/ NSSF 24,550 14,725
Slide 20: Funds Raised During The Period (Long Term)
Funds Raised During The Period (Long Term) Total Funds raised 64,946 75,998 89,872 50,409 (₹ Crores) % age 100% 90% 19.4 23.5 80% 37.8 36.9 70% 16.3 16.5 60% 8.1 5.9 15.0 50% 33.2 40% 10.2 30% 56.2 54.1 13.1 20% 37.0 10% 16.9 0% 2019 2020 2021 9M FY22 Taxable Bonds 54EC Bonds ECB Banks/ FIs/ NSSF 20
Slide 21: Financial Highlights
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Slide 22: Key Financial Highlights
Key Financial Highlights Highest ever Quarterly Net Profit at ₹ 2,773 crores ❑ Total Income grown to ₹ 29,629 crores ( 13% YoY). ❑ Net Profit stands at ₹ 7,758 crores ( 23% YoY). ❑ Net Interest Income recorded at ₹ 12,005 crores ( 26% YoY). ❑ Loan book reached to ₹ 3.89 lakh crores (9% YoY)
Slide 23: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ in Crores Q3 9M Particulars FY 21 FY 22 FY 21 FY 22 Interest Income on Loan assets 8,825 9,654 25,557 28,717 Less: Finance Costs 5,446 5,549 16,051 16,700 Net Interest Income 3,379 4,105 9,506 12,017 Other Operating Income 97 106 358 545 Net notional gain/ (lo
Slide 24: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ in Crores Particulars As at 31.03.2021 As at 31.12.2021 Assets (A) Financial Assets 396,951 414,997 Cash and bank balances 3,070 10650 Derivative financial instruments 2,311 3,376 Loans (Ind-AS) 365,261 374,226 Investments 1,910 2,037 Other financial assets 24,3
Slide 25: Key Ratios
Key Ratios Q3 9M Particulars FY 21 FY 22 FY 21 FY 22 Yield on Loan Assets (%) 10.58 10.46 10.69 10.52 Cost of Funds (%) 7.18 6.68 7.33 6.87 Interest Spread (%) 3.40 3.78 3.36 3.65 Net Interest Margin (%) 4.06 4.41 3.93 4.31 Return on Net Worth (%) 22.08 22.63 21.84 22.08 Interest Coverage Ratio (Tim
Slide 26: Thank You
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