Slide 1: More than Five Decades of Relentless Growth
REC Limited A Navratna Company Investor Presentation Performance Highlights Q1 FY 23 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 31.03.2022 As at 30.06.2022 PFC, 52.63 PFC, 52.63 FPI, 24.27 FPI, 23.43 MFs, 9.24 MFs, 8.43 Others, 4.46 Insurance Insurance Cos., 0.12 Others, 4.44 Cos., 0.18 Corporates, Individual/ HUF, 8.33 Corporates, Individual/ 0.95 1.07 HUF, 9.82 Foreign Portfolio Investors (FPIs)
Slide 6: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at June 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 7.55 175% 3 The WindAcre Partnership Master Fund LP
Slide 7: Operational Performance
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Slide 8: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in Q1 FY 23 [CATEGOR Total Sanctions Y NAME] during the Q1 FY23 60% ₹ 59,895crores [CATEGOR Y NAME] 9% Renewable T&D 16% (₹ in Crores) 15% 12M Q1 Discipline-wise FY 20 % FY 21 % FY 22 % FY 22 % FY 23 % Generation 57,362 52 44,301 28 16,081 30
Slide 9: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in Q1 FY 23 STL Generation Total Disbursements 12% 16% during the Q1 FY23 ₹ 12,442 crores Distribution 16% Renewable 48% Transmission 8% (₹ in Crores) 12M Q1 Discipline-wise FY20 % FY21 % FY 22 % FY 22 % FY 23 % Generation 29,301 39 26
Slide 10: Outstanding Loans – Composition
Outstanding Loans – Composition State [CATEGO [CATEGO 85% RY NAME] Renewable RY NAME] 1% Energy 39% Transmissi 4% on Distributio 17% Private n 10% 39% Joint 5% (₹ in Crores) 0% As at st st st th Discipline-wise 31 March 2020 31 March 2021 31 March 2022 30 June 2022 Amount % Amount % Amount % Amount
Slide 11: Asset Diversification - PAN India Presence
J&K Haryana Figures in ₹ Crores 3,072 5,051 Himachal Pradesh 1,509 Assam 518 Punjab Uttarakhand Arunachal Pradesh Asset Diversification - 5,723 3,008 UP Sikkim 2 4,508 PAN India Presence Rajasthan 48,272 Bihar 41,387 10,705 Lending across 27 States and 2 Union Territories Nagaland 74 Manipur 203 Guj
Slide 12: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as at June 30, 2022) Amount % of Total S. No. Top Ten Borrowers Outstanding Loan Assets (₹ in Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 37,148 9.58% 2 Uttar Pradesh Power Corporation Limited 19,720 5.08% 3 Maharashtra
Slide 13: Asset Quality
Asset Quality 13
Slide 14: Asset Quality as at June 30, 2022
Asset Quality as at June 30, 2022 Stable Asset Quality Provision Coverage Ratio 70% 6% 67.63% 68.08% 67.40% 5.07% 65.72% 5% 4.80% 65% 66.48% 4.45% 4.41% 4.70% 4% 60% 3% 55% 2% 1.61% 1.74% 1.45% 1.41% 1.52% 1% Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 50% Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Gross Credit-impa
Slide 15: Loan Portfolio as at June 30, 2022
Loan Portfolio as at June 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 - Discoms 1,54,344 - - - 1,54,344 1,469 0.95 1,469 - G
Slide 16: Credit Impaired Assets – Resolution Status
Credit Impaired Assets – Resolution Status Rs.9,531 crores in NCLT Under NCLT 11 projects 73% provision Resolution status of Credit Impaired Assets Rs.7,594 crores resolution pursued outside NCLT Outside NCLT 14 projects Highest Domestic Rating of “AAA”; Major Player in 63% provision International R
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 th Particulars 31 March 2020 31 March 2021 31 March 2022 30 June 2022 Amount Amount Amount Amount % Corporate Bonds 158,148 179,989 152,692 146,814 44 Foreign Currency Borrowings 44,380 47,487 65,957 68,909 21 FCNR (B) Loans 6,973 5,329 9,855 10,65
Slide 19: Funds Raised During The Period
Funds Raised During The Period (₹ in Crores) 12M Q1 Category FY20 FY21 FY22 FY22 FY23 (A) Long Term Capital Gains Bonds 6,157 5,312 7,316 1,288 2,670 Institutional Bonds/ Subordinate Debt 42,713 48,660 9,080 4,000 - Loans from Banks/FIs/ NSSF 14,725 21,053 25,850 4,500 2,150 Foreign Currency Borrowi
Slide 20: Funds Raised During The Period (Long Term)
Funds Raised During The Period (Long Term) Total Funds raised 75,998 89,872 61,929 5,598 (₹ Crores) % age 100% 90% 19.4 23.5 80% 41.8 38.4 70% 16.3 16.5 60% 8.1 5.9 13.9 50% 40% 31.8 30% 56.2 54.1 47.7 20% 11.8 10% 14.6 0% 0.0 2020 2021 2022 Q1 2023 Taxable Bonds 54EC Bonds FCB Banks/ FIs/ NSSF 20
Slide 21: Financial Highlights
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Slide 22: Key Financial Highlights for Q1 FY23
Key Financial Highlights for Q1 FY23 Total Income stands at ₹ 9,469 crores. Net Profit stands at ₹ 2,447 crores ( 9% YoY). Net Interest Income recorded at ₹ 3,880 crores ( 3% YoY). Loan book reached to ₹ 3.88 lakh crores (2% YoY) Assets Quality improved with Net Credit impaired Assets a
Slide 23: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ in Crores Q1 Particulars FY 22 FY 23 Interest Income on Loan assets 9,374 9,262 Less: Finance Costs ** 5,597 5,382 Net Interest Income 3,777 3,880 Other Operating Income 213 167 Net notional gain/ (loss) on fair value changes (81) 30 Other Income 5 9 Total Inc
Slide 24: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ in Crores Particulars As at 30.06.2021 As at 31.03.2022 As at 30.06.2022 Assets (A) Financial Assets 402,707 406,417 409,302 Cash and bank balances 6,201 2,422 1,325 Derivative financial instruments 2,983 5,510 6,577 Loans (Ind-AS) 366,701 371,931 374,578 Invest
Slide 25: Key Ratios
Key Ratios Q1 Particulars FY 22 FY 23 Yield on Loan Assets (%) 10.37 10.07 Cost of Funds (%) 6.99 6.73 Interest Spread (%) 3.38 3.34 Net Interest Margin (%) 4.10 4.09 Return on Net Worth (%) 20.17 18.90 Interest Coverage Ratio (Times) 1.49 1.55 Debt Equity Ratio (Times) 7.05 6.26 Earnings per Share
Slide 26: Thank You
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