Rec Limited · NSE:RECLTD
Rec — Q1 FY21 Earnings Presentation
29 slides from Rec's earnings presentation, August 2020
Slide 1: REC Limited Investor Presentation: Performance Highlights Q1 FY21
REC Limited (Formerly Rural Electrification Corporation Limited) A Navratna Company Investor Presentation Performance Highlights Q1 FY 21 ICAI award for Excellence in Financial Reporting (2018-19) 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 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 Registered as Management NBFC, PFI and Team With IFC with RBI and Sector Expertise a Notified Instit
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. June 1, 2020 and also Director (Technical), REC Mr. Sanjeev Kumar since October 16, 2015 Gupta Extensive experience in Planning, Design, Construction, O&M, Project Management of large
Slide 6: Board of Directors
Board of Directors Experienced Team with sector experience Shri Mritunjay Kumar Narayan is Indian Administrative Service (IAS) officer of 1995 Uttar Pradesh Cadre, is a Joint Mr. Mritunjay Kumar Secretary in Ministry of Power. On Board of REC since Sept 02, 2019. Previously, Secretary to the Hon’ble
Slide 7: Shareholding Pattern
Shareholding Pattern As at 31.03.2020 As at 30.06.2020 PFC, 52.63 PFC, 52.63 FPI, 26.99 FPI, 26.59 MFs, 8.82 MFs, 9.30 Others, 1.63 Insurance Others, 1.68 Individual/ Insurance Cos., 2.97 Individual/ Corporates, HUF, 6.00 Corporates, Cos., 2.97 0.96 HUF, 6.05 0.78 Foreign Portfolio Investors (FPIs)
Slide 8: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at June 30, 2020 Dividend Payout as a % of Equity Rank Particulars Shareholding (%) Share Capital Consistently high dividend paying company 1 Power Finance Corporation Ltd 52.63 2 HDFC Trustee Company Ltd 8.65 125% 110.00% 110.00% 3 Life Insurance Corporat
Slide 9: Operational Performance
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Slide 10: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in Q1 FY 21 Generation 43% 73% Increase in Sanctions Renewable Q1FY21 Vs Q1FY20 19% STL 1% T&D 37% (₹ in Crores) 12M Q1 Discipline-wise FY 18 % FY 19 % FY 20 % FY 20 % FY 21 % Generation 53,224 49 43,282 37 57,362 52 6,034 25 17,930 43 Renewab
Slide 11: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in Q1 FY 21 STL 3% Generation Total Disbursements 33% Rs 15,271 crores Renewable 4% Distribution 44% Transmission 16% (₹ in Crores) 12M Q1 Discipline-wise FY18 % FY19 % FY20 % FY 20 % FY 21 % Generation 18,086 29 20,462 29 29,301 39 4,
Slide 12: Outstanding Loans – Composition
Outstanding Loans – Composition State STL Generation 82% 0% 43% Distribution Transmission Renewable 34% 18% Energy Private 11% Joint 5% 7% (₹ in Crores) As at st st st th Discipline-wise 31 March 2018 31 March 2019 31 March 2020 30 June 2020 Amount % Amount % Amount % Amount % State 186,445 78 226,6
Slide 13: Asset Diversification - PAN India Presence
J&K and Ladakh Haryana 341 5,648 Figures in ₹ Crores Himachal Pradesh 1,066 Assam 573 Punjab Uttarakhand Arunachal Pradesh Asset Diversification - 7,084 2,574 UP Sikkim 7 5,112 PAN India Presence Rajasthan 33,522 Bihar 36,040 12,710 Lending across 27 States and 3 Union Territories Nagaland 101 Manip
Slide 14: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as at June 30, 2020) Amount % of Total Loan S. No. Top Ten Borrowers Outstanding Assets (₹ Crores) 1 Maharashtra State Electricity Distribution Company Limited 23,900 7.24% 2 Tamil Nadu Generation and Distribution Corporation 18,596 5.62% 3 Maha
Slide 15: Asset Quality
Asset Quality 15
Slide 16: Asset Quality as at June 30, 2020
Asset Quality as at June 30, 2020 9.00% Improving Asset Quality 54.00% Increase in Provision Coverage Ratio 52.89% 8.00% 53.00% 7.24% 7.18% 6.86% 52.00% 7.00% 6.59% 51.00% 50.68% 6.00% 6.40% 6.11% 50.00% 5.00% 49.00% 49.40% 49.64% 4.00% 3.79% 3.72% 3.47% 3.32% 48.00% 3.16% 48.21% 2.88% 47.66% 3.00%
Slide 17: Loan Portfolio as at June 30, 2020
Loan Portfolio as at June 30, 2020 Figures : ₹ 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 116,306 - - - 116,306 81 0.07 81 - Renewables 7,
Slide 18: Borrowing Profile
Borrowing Profile Domestic Ratings “AAA” “AAA” “AAA” “AAA” International Ratings “BBB - ” “Baa3” 18
Slide 19: Outstanding Borrowings
Outstanding Borrowings (₹ Crores) As at st st st Particulars 31 March 31 March 31 March th 30 June 2020 2018 2019 2020 Amount Amount Amount Amount % Corporate Bonds 128,871 135,184 158,148 168,590 56.7 Foreign Currency Borrowings 25,996 29,710 44,380 51,731 17.4 FCNR (B) Loans 3,811 5,048 6,973 6,98
Slide 20: Diversified Borrowing Profile
Diversified Borrowing Profile As at 30th June 2020 0% Corporate Bonds 4% 12% Foreign Currency Borrowings FCNR (B) Loans 7% 2% Capital Gain Bonds 57% Tax Free Bonds 18% Loans from Banks, FIs, NSSF etc. Infra Bonds More than 64% of foreign currency borrowings are hedged as on 30th June 2020. 20
Slide 21: Funds Raised During The Period
Funds Raised During The Period (₹ Crores) 12M Q1 Category FY18 FY19 FY20 FY20 FY21 (A) Long Term Capital Gains Bonds 9,565 6,652 6,157 1,264 860 Institutional Bonds/ Subordinate Debt 26,145 24,010 42,713 8,032 12,890 Loans from Banks/FIs/ NSSF - 24,550 14,725 475 3,265 Foreign Currency Borrowings 11
Slide 22: Funds Raised During The Period (Long Term)
Funds Raised During The Period (Long Term) Total Funds raised 47,406 64,946 75,998 24,353 (₹ Crores) % age 100% 0.0 13.4 90% 19.4 24.7 80% 37.8 70% 16.3 30.1 20.2 60% 8.1 15.0 3.5 50% 40% 10.2 30% 56.2 55.2 52.9 20% 37.0 10% 0% 2018 2019 2020 Q1 FY 21 Taxable Bonds 54EC Bonds ECB Banks/ FIs/ NSSF 22
Slide 23: Financial Highlights
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Slide 24: Key Financial Highlights
Key Financial Highlights All-time high quarterly profits at ₹ 1,839 crores ❑ Total Income for Q1 FY21 at ₹ 8,422 crores (up 24% YoY) as against Rs. 6,799 crores for Q1 FY 20. ❑ Net Interest Income for Q1 FY21 at ₹ 2,794 crores (up 19% YoY) as against Rs. 2,346 crores for Q1 FY 20. ❑ Loan book as
Slide 25: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ Crores Q1 Particulars FY20 FY 21 Interest Income on Loan assets 6,919 7,987 Less: Finance Costs 4,573 5,193 Net Interest Income 2,346 2,794 Other Operating Income 67 122 Net notional gain/ (loss) on fair value changes (190) 312 Other Income 3 1 Total Income 6,
Slide 26: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ Crores Particulars As at 30.06.2019 As at 31.03.2020 As st 30.06.2020 Assets (A) Financial Assets 3,06,353 343,497 362,906 Cash and bank balances 3,325 3,700 11,957 Derivative financial instruments 1,375 3,319 3,816 Loans (Ind-AS) 280,869 312,084 322,376 Investm
Slide 27: Key Ratios
Key Ratios Q1 Particulars FY20 FY21 Yield on Loan Assets (%) 10.54 10.53 Cost of Funds (%) 7.52 7.19 Interest Spread (%) 3.02 3.34 Net Interest Margin (%) 3.56 3.68 Return on Net Worth (%) 17.11 20.30 Interest Coverage Ratio (Times) 1.46 1.48 Debt Equity Ratio (Times) 6.84 7.68 Earnings per Share (A
Slide 28: Steering through COVID-19 Outbreak
Steering through COVID-19 Outbreak • Leveraged digital technology for review, monitoring, information-sharing and knowledge management • Continued business operations without any significant disruptions due to Operations lockdown Management Liquidity • Raised Rs 29,272 crores during Q1FY21 through d
Slide 29: Thank You
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