Slide 1: REC Limited Investor Presentation: Performance Highlights Q4 & 12M FY19
REC Limited (Formerly Rural Electrification Corporation Limited) A Navratna Company Investor Presentation Performance Highlights Q4 & 12M FY 19 Lighting up lives through composite financial solutions……..
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 Management Team With Nodal Agency for Sector providing 24x7 Expertise quality power to all 600,000 K
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. March 6, 2019 and also Director (Finance), Mr. Ajeet Kumar REC since August 1, 2012 Agarwal Chairman & Managing Experience in the field of Financial Management and Operations encompas
Slide 6: Board of Directors
Board of Directors Experienced Team with sector experience Previously, posted as Member Secretary of Gujarat Ecology Commission, and Project Director of Dr. Arun Kumar World Bank funded Integrated Coastal Zone Management. Verma Holds Master’s degree in Physics, Ph.D. in Tribal Development Policy. Po
Slide 7: Board of Directors
Board of Directors Experienced Team with sector experience Ms. Asha Swarup Has served as Secretary Ministry of I&B, Special Secy./ Addl. Secy. & Financial Adviser in the Ministries Independent Director of Commerce and Textiles. Chief Secretary, Principal Secy. in Departments of Finance, Health, Powe
Slide 8: Shareholding Pattern
Shareholding Pattern As at 31.03.2019 As at 31.12.2018 GoI , 52.85 PFC, 52.63 FPI, 25.30 FPI, 23.52 MFs, 10.35 MFs, 9.94 Others, 1.39 Insurance Others, 1.17 Insurance Cos., 3.36 Individual/ Cos., 3.13 Individual/ Corporates, Corporates, HUF, 6.23 HUF, 7.71 0.97 1.45 FPIs have consistently held more
Slide 9: Shareholders Outlook
Shareholders Outlook Top 10 Share holders as at March 31, 2019 Dividend Payout as a % of Equity Share Capital Rank Particulars Shareholding (%) Consistently high dividend paying company 1 Power Finance Corporation ltd 52.63 125% 2 CPSE ETF 3.57 110.00% HDFC Trustee Company Limited - HDFC 3 2.30 96.5
Slide 10: Operational Performance
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Slide 11: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in 12M FY19 11% Project Loans Generation 12MFY19 37% Renewable vs 10% 12MFY18 STL T&D 4% 49% 12M Q4 Discipline-wise FY16 % FY17 % FY 18 % FY 19 % FY 18 % FY 19 % Generation 27,828 43 28,209 34 53,224 49 43,282 37 3,840 30 6,920 31 Renewable En
Slide 12: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in 12M FY19 24% Project Loans STL 12MFY19 5% Generation vs 29% 12MFY18 Renewable 9% Distribution 42% Transmission 15% 12M Q4 Discipline-wise FY 16 % FY 17 % FY18 % FY19 % FY 18 % FY 19 % Generation 12,820 27 21,697 37 18,086 29 20,462
Slide 13: Outstanding Loans – Composition
Outstanding Loans – Composition State STL Generatio 81% 1% n Customer-wise 43% Category-wise breakup breakup of Distributi Transmiss of Loans as at on Renewabl Private Loans as at ion 31.03.2019 33% e Energy 12% Joint 31.03.2019 18% 5% 7% 12M Discipline-wise FY 16 FY 17 FY18 FY19 Amt % Amt % Amt % A
Slide 14: Outstanding Loans - Asset Diversification
J&K Haryana 251 6,216 Figures in Rs. Crores Himachal 830 Assam 320 Punjab Uttarakhand Arunachal 7,741 2,405 Outstanding Loans - UP 26,786 Sikkim 5,045 14 Asset Diversification Rajasthan 31,206 Bihar 12,274 PAN India Presence with loan concentration across Nagaland 28 states and 1 Union Territory 88
Slide 15: Outstanding Loans –Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as on March 31, 2019) S.No. Top Ten Borrowers Amount % of Total Loan Outstanding Assets (Rs Cr.) 1 Maharashtra State Electricity Distribution Company Limited 19,263 6.85% 2 Tamil Nadu Generation and Distribution Corporation 14,864 5.29% 3 Mahara
Slide 16: Asset Quality
Asset Quality 16
Slide 17: Asset Quality & Provision Coverage
Asset Quality & Provision Coverage As at March 31, 2019 Figures : Rs. Crores Utility Total Loan Credit Impaired Assets (NPAs) Standard Assets Total Outstanding (Stage – III) (Stage – I & II) Provision Outstanding Provision Provision Outstanding Provision Provision * coverage ratio (%) coverage ratio
Slide 18: Borrowing Profile
Borrowing Profile National Ratings “AAA” “AAA” “AAA” “AAA” International Ratings “BBB - ” “Baa3” 18
Slide 19: Outstanding Borrowings
Outstanding Borrowings Rs. Crores Particulars 12M FY 16 FY 17 FY 18 FY 19 Institutional, Subordinate 109,678 113,449 128,871 135,184 & Zero Coupon Bonds Foreign Currency Borrowings 21,924 21,081 25,996 29,710 FCNR (B) Loans - - 3,811 5,048 Capital Gain Bonds 17,164 19,477 23,705 23,880 Tax Free Bond
Slide 20: Outstanding Borrowings
Outstanding Borrowings Total Borrowings (Rs. Cr.) 1,69,106 1,67,517 1,98,791 239,286 % age 100% 7.6 7.6 6.4 5.3 1.6 3.3 90% 3.3 1.9 2.1 12.6 13.0 13.1 12.4 80% 0.4 1.1 0.2 70% 11.6 10.3 10.1 11.9 60% 10.0 50% 40% 64.9 67.8 64.9 30% 56.6 20% 10% 0% 2016 2017 2018 2019 Taxable Bonds 54EC Bonds Banks/
Slide 21: Funds Raised During The Period
Funds Raised During The Period Rs. Crores Category 12M Q4 FY16 FY17 FY18 FY19 FY18 FY19 (A) Long Term Capital Gains Bonds 6,477 7,663 9,565 6,652 4,137 2,199 Tax Free Bonds 1,000 - - - - - Institutional Bonds/ Subordinate Debt 15,526 18,600 26,145 24,010 9,720 9,161 Term Loans from Banks/FIs/ NSSF -
Slide 22: Funds Raised During The Period (Long Term)
Funds Raised During The Period (Long Term) Total Funds raised 31,255 28,495 47,406 64,946 (Rs. Cr.) % age 100% 7.8 90% 24.7 26.4 80% 37.8 26.9 70% 20.2 60% 20.7 15.0 50% 40% 10.2 65.3 30% 55.2 49.7 20% 37.0 10% 0% 2016 2017 2018 2019 Taxable Bonds 54EC Bonds ECB Banks/ FIs/ NSSF Tax Free Bonds 22
Slide 23: Financial Highlights
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Slide 24: Key Financial Highlights
Key Financial Highlights Total Income for 12M FY19 and Q4 FY19 stands at Rs. 25,341 crores (up 13% Y-o-Y) and Rs. 6,685 crores (up 12% Y-o-Y) respectively. PAT for 12M FY19 and Q4 FY19 stands at Rs. 5,764 crores (up 30% Y-o-Y) and Rs. 1,256 crores (up 50% Y-o-Y) respectively. Loan book as at 12M FY1
Slide 25: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Rs. Crores Particulars Q4 12M FY 18 FY 19 FY 18 FY 19 Interest Income 5,459 6,493 21,797 24,728 Less: Finance Costs 3,629 4,173 13,362 15,676 Net Interest Income 1,830 2,320 8,435 9,052 Other Operating Income 481 178 658 582 Other Income 8 14 13 31 Total Income
Slide 26: Statement of Assets and Liabilities
Statement of Assets and Liabilities Rs. Crores Particulars As at 01.04.2017 As at 31.03.2018 As at 31.03.2019 Assets (A) Financial Assets 202,020 238,400 294,590 Cash and Bank 4,494 1,782 1,596 Derivative financial instruments 628 690 1,803 Loans 193,935 228,878 270,451 Investments 2,909 2,825 2,398
Slide 27: Key Ratios
Key Ratios Particulars Q4 12M FY 18 FY 19 FY 18 FY19 Yield on Interest bearing Loan Assets (%) 10.26 10.29 10.51 10.40 Cost of Funds (%) 7.62 7.16 7.30 7.16 Interest Spread (%) 2.64 3.13 3.21 3.24 Net Interest Margin (%) 3.46 3.68 4.10 3.85 Return on Net Worth (%) 10.16 14.42 14.06 17.31 Interest Co
Slide 28: Reconciliation of Net Profit for FY 2017-18
Reconciliation of Net Profit for FY 2017-18 Rs. Crores Particulars Q4 FY18 12M FY18 Profit under IGAAP for the period 835 4,647 Adjustments under Ind AS : Measurement of financial assets initially at fair value and subsequently at amortized cost 13 38 Measurement of financial liabilities initially a
Slide 29: Reconciliation of Equity as at 01.04.17 & 31.03.18
Reconciliation of Equity as at 01.04.17 & 31.03.18 Rs. Crores Particulars As at 01.04.17 As at 31.03.18 Total equity (shareholder's funds) as per Previous GAAP 33,326 35,491 Adjustments: Measurement of financial assets initially at fair value and subsequently at amortised cost (109) (71) Measurement
Slide 30: Thank You
Thank You 30