Rec Limited · NSE:RECLTD
Rec — FY2023 Earnings Presentation
31 slides from Rec's earnings presentation, May 22, 2023
Slide 1: REC Limited Investor Presentation Q4 and 12M FY 2022-23
REC Limited A Maharatna Company Investor Presentation Performance Highlights Q4 and 12M FY 2022-23 More than Five Decades of RELENTLESS GROWTH 1
Slide 2: Table of Contents
REC Overview Borrowing Profile Table of Operational Performance Contents Financial Highlights Asset Quality 2
Slide 3: REC Overview
—<— REC Overview
Slide 4: REC Journey
REC Journey Journey began to develop power Our 50+ Established infrastructure in RECIPMT, a rural areas Conferred 'Maharatna’, Glorious premier training institute for the highest status for a CPSE Years power sector 1969 1979 2022 Registered as Appointed as NBFC with Nodal Agency RBI for RDSS 1998 2
Slide 5: Key Strengths
Key Strengths Unique and close relationship with all major players – Public & Private - in Indian Power sector Registered as Occupies Strategic Position in the NBFC, PFI and Growth and IFC with RBI and development of the a Notified Power Sector across Institution to issue 54EC Bonds Nodal Agency Ind
Slide 6: Awards and Rankings
‘Best PSU' India's 25 Most in the Financial Profitable Services Companies category by by Dun & Business Bradstreet Today Ranked 53rd in Fortune India 500 (2022) ‘Excellence in Corporate 'Operational Governance’ Performance Excellence' Golden Awarded by Peacock Indian Award Chamber of (2022) Commerce
Slide 7: Accorded Maharatna Status in FY 2022-23
The jewel that illuminates the nation shines even brighter REC IS NOW "Accorded Maharatna Status A MAHARATNA COMPANY in FY 2022-23" Maharatna - Business advantages Allows strategic Accelerating Give greater investments by growth and operational & incorporating JVs, supporting financial Subsidiaries
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
Slide 10: Shareholders Outlook
Shareholders Outlook Shareholding Pattern EPS Book Value as at 31.03.2023 PFC, 52.63 FPI/ FII, (Annualised) Per Share 21.51 ₹ 41.86 ₹ 219.05 Bonus issued Dividend in FY23 Yield Others, 1:3 12.43%* 0.37 Insurance Cos., 4.26 Corporates Individual/ , 1.45 MFs, 7.33 HUF, 12.45 *Dividend Yield is based o
Slide 11: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at March 31, 2023 Dividend Payout as a % of Equity Share Capital Rank Particulars Shareholding (%) Consistently high dividend paying company 1 Power Finance Corporation Ltd 52.63 175% 2 HDFC Trustee Company Limited 4.92 153.00% The WindAcre Partnership Mas
Slide 12: Operational Performance
Operational Performance 12
Slide 13: Sanctions - Composition
Sanctions - Composition (₹ in Crores) Sector-wise breakup of Sanctions in 12M FY 23 Q4 12M Renewable Discipline-wise 8% FY 22 % FY 23 % FY 22 % FY 23 % Generation T&D 13% 30% Generation (including 2,296 21 3,807 5 16,081 30 34,529 13 Power Infra Projects) STL Renewables 4,188 39 350 1 14,734 27 21,3
Slide 14: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in 12M FY 23 (₹ in Crores) Q4 12M Discipline-wise FY 22 % FY 23 % FY 22 % FY 23 % Generation Renewable 26% 13% Generation (including 5,284 34 8,310 22 20,750 32 25,050 26 Transmissio Power Irrigation) n 3% Renewable 1,259 8 3,650 10 3,
Slide 15: Outstanding Loans – Composition
Outstanding Loans – Composition (₹ in Crores) State As at 90% st st Discipline-wise 31 March 2022 31 March 2023 Amount % Amount % Private State 3,50,456 91 3,93,225 90 10% Private 34,915 9 41,787 10 Total 3,85,371 100 4,35,012 100 STL / RBPF Generation Generation 1,56,724 41 1,67,765 39 6% 39% Renew
Slide 16: Asset Diversification - PAN India Presence
Asset Figures in ₹ Crores Diversification - J&K 9,254 Haryana 5,874 Himachal Pradesh PAN India 1,594 Assam 596 Punjab Presence Uttarakhand Arunachal Pradesh 6,464 2,833 1 Sikkim UP 3,957 47,514 Lending across 27 States and 1 Union Territories Rajasthan Bihar 47,318 14,286 State/ Joint Sector Borrowe
Slide 17: Outstanding Loans – Major Borrowers
Outstanding Loans – Major Borrowers Major Borrowers (as at March 31, 2023) Amount Outstanding S. No. Top Ten Borrowers % of Total Loan Assets (₹ in Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 42,080 9.67% 2 Uttar Pradesh Power Corporation Limited 19,027 4.37% 3 Telangana Sta
Slide 18: Asset Quality
—<— Asset Quality
Slide 19: Asset Quality as at March 31, 2023
Asset Quality as at March 31, 2023 Stable Asset Quality 71% Provision Coverage Ratio 6% 70.64% 5% 70% 4.45% 4.03% 69.28% 4% 4.41% 69.11% 3.63% 3.42% 69% 3% 68.08% 68% 2% 1.45% 67.40% 1.24% 1.12% 1.01% 1% 1.41% 67% Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Gross Credit-imp
Slide 20: Loan Portfolio as at March 31, 2023
Loan Portfolio as at March 31, 2023 (₹ in Crores) Credit Impaired Assets Standard Assets (Stage – III) (Stage – I & II) Particulars Loan O/s Total ECL* Provision Provision coverage O/s ECL O/s ECL coverage ratio (%) ratio (%) State Sector - Generation 1,46,041 - - 1,46,041 967 0.66% 967 - Renewable
Slide 21: Credit Impaired Assets – Resolution Status
Credit Impaired Assets – Resolution Status Rs.11,627 crores in NCLT Under NCLT 12 projects Resolution status 77% provision of Credit Impaired Assets Rs.3,265 crores resolution pursued outside NCLT Outside NCLT 7 projects 47% provision Resolution/ Upgrade during Q4FY23: • 'ATN International Limited’
Slide 22: Borrowing Profile
—<— Borrowing Profile —
Slide 23: Domestic and International Credit Ratings
Domestic Credit Ratings for Long Term Borrowings “AAA” “AAA” “AAA” “AAA” International Issuer Ratings “BBB- ” “Baa3” 23
Slide 24: Outstanding Borrowings
Outstanding Borrowings (₹ in Crores) st st 31 March 31 March Particulars Corporate Bonds Foreign Currency 2022 2023 42% Borrowings Corporate Bonds 152,692 1,56,868 21% Foreign Currency Borrowings 65,957 78,440 FCNR (B) Loans 9,855 15,424 Capital Gain Bonds 25,438 37,587 FCNR (B) Loans Borrowing Capi
Slide 25: Funds Raised During The Period
Funds Raised During The Period (₹ in Crores) Q4 12M Category FY22 FY23 FY22 FY23 (A) Long Term Capital Gains Bonds 2,512 3,709 7,316 12,154 Institutional Bonds/ Subordinate Debt - 11,753 9,080 25,545 Loans from Banks/FIs/ NSSF 6,550 6,861 25,850 22,911 Foreign Currency Borrowings 2,457 3,126 19,683
Slide 26: Financial Highlights
4 y Financial Sd Highlights
Slide 27: Key Financial Highlights for 12M FY23
Key Financial Highlights for 12M FY23 Highest ever Annual Net Profit at ₹ 11,055 crores Total Income stands at ₹ 39,253 crores. Net Profit stands at ₹ 11,055 crores ( 10% YoY). Loan book reached to ₹ 4.35 lakh crores (13% YoY) Assets Quality improved with Net Credit impaired Assets at 1.01% (vs. 1
Slide 28: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ in Crores Q4 12M Particulars FY 22 FY 23 FY 22 FY 23 Interest Income on Loan assets 9,235 9,904 37,811 38,360 Less: Finance Costs ** 5,353 6,497 22,053 23,738 Net Interest Income 3,882 3,407 15,758 14,622 Other Operating Income 289 240 975 802 Net notional gai
Slide 29: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ in Crores Particulars As at 31.03.2022 As at 31.12.2022 As at 31.03.2023 Assets (A) Financial Assets 4,06,417 4,35,235 4,60,591 Cash and bank balances 2,422 1,168 1,987 Derivative financial instruments 5,510 8,481 8,982 Loans (Ind-AS) 3,71,931 3,97,887 4,22,084
Slide 30: Key Ratios
Key Ratios Q4 12M Particulars FY 22 FY 23 FY 22 FY 23 Yield on Loan Assets (%) 10.09 9.65 10.23 9.73 Cost of Funds (%) 6.67 7.17 7.00 7.28 Interest Spread (%) 3.42 2.48 3.23 2.45 Net Interest Margin (%) 4.09 3.29 4.01 3.38 Return on Net Worth (%) 18.08 21.34 21.28 20.35 Interest Coverage Ratio (Time
Slide 31: Endless energy. Infinite possibilities.
ars at REC aeifid wat, saat aera Endless energy. Infinite possibilities. 31