Rec Limited · NSE:RECLTD
Rec — H1 FY2024-25 Earnings Presentation
31 slides from Rec's earnings presentation, Oct 26, 2024
Slide 1: REC Limited Investor Presentation: Q2 & H1 FY 2024-25
REC Limited A Maharatna Company INVESTOR PRESENTATION PERFORMANCE HIGHLIGHTS Q2 & H1 FY 2024-25
Slide 2: Table of Contents
1. REC Overview 2. Operational Performance Table of 3. Asset Quality Contents 4. Borrowing Profile 5. Financial Highlights 02
Slide 3: REC Overview
01 REC OVERVIEW • REC Journey • Key Strengths • Government’s Trusted Arm • Maharatna Status • Forayed into Infra Sector • Shareholders Outlook • Shareholders Outlook cont.. • Awards and Accolades 03
Slide 4: REC Journey
2024: Appointed as National programme implementing REC Journey 2022: Conferred agency for PM Surya Ghar Muft Bijli Yojana, Maiden Yen Bond ‘Maharatna’, highest issuance of JPY 61.1 Bn and status for a PSU. USD Bond issuance of $500 Mn Forayed into Infrastructure sector 2019: As Nodal Agency, achieve
Slide 5: Key Strengths
Key Strengths Experienced ‘Maharatna’ Company Management Team with and a strategic player in Sector Expertise the Indian Power, Infrastructure and Logistics Sector Nodal Agency for major Govt. of India’s power sector programmes – RDSS, Diversified Asset Base Saubhagya, DDUGJY, with robust Access to
Slide 6: Government’s Trusted Arm
Government’s Trusted Arm RDSS Rooftop Solar (RTS) SAUBHAGYA Programme REC NEF LPS DDUGJY Consumer Services Integrated Ratings of Rating Discoms of Discoms (Operational) (Financial) 06
Slide 7: Maharatna Status (accorded in FY 2022-23)
Maharatna Status (accorded in FY 2022-23) REC is amongst the Coveted Few Maharatna – Business advantages Indian PSUs Maharatna Gives greater operational & • Highest rank for top-performing PSUs in India financial autonomy • Total of 14 PSUs accorded this status Navratna • 2nd highest rank of top-per
Slide 8: Forayed into Infra Sector
Forayed into Infra Sector: For Nation’s Accelerated Development REC has diversified loan portfolio with a mandate of up to 33% loans in the Infrastructure and Logistics sector Health Sector Metro Ports Steel Infra Waterways REC IT Infra / Fiber Airport Optics Road & Highways Oil Refinery 08
Slide 9: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at September 30, 2024 Shareholding Pattern as at Shareholding Rank Particulars 30.09.2024 (%) 1 Power Finance Corporation Ltd 52.63 2 Government of Singapore 1.56 HDFC Trustee Company Ltd. A/C HDFC Balanced PFC 3 1.47 Advantage Fund 52.63% 4 Life Insurance
Slide 10: Shareholders Outlook Continue..
Shareholders Outlook Continue.. Dividend Payout as a % of Equity Share Capital Consistently high dividend paying company ➢ Earnings per Share ₹28.28 (Annualized ₹56.56) 175% 160.00% ➢ Book Value per Share ₹276.82 150% Consistent increase in share price from ₹291.80 as on October 3, 2023 to ₹554.50 a
Slide 11: Awards and Accolades
Awards and Accolades Awarded ‘Plaque’ under ‘Financial Services Sector (Other than Banking and Insurance)’ category at the ICAI Awards for Excellence in Financial Reporting for FY 2022-23 SKOCH ESG Golden Asset Triple A Excellence in Award 2024 Peacock Award Awards Green Renewable For Risk Best Gree
Slide 12: Operational Performance
OPERATIONAL 02 PERFORMANCE • Sanctions • Disbursements • Outstanding loans • Pan India presence – Loan Assets • Outstanding Loans – Major Borrowers 12
Slide 13: Sanctions - Composition
Sanctions - Composition (₹ in crore) H1 Q2 12M Sector-wise breakup of Sanctions in Q2 FY 25 Discipline-wise in FY 25 % FY 24 % FY 25 % FY 24 % FY 24 % Generation 53,879 29 36,604 19 18,326 24 21,085 20 67,112 19 STL/MTL Renewables incl Large Hydro 60,391 32 49,929 25 20,737 27 24,944 24 1,36,516 38
Slide 14: Disbursements - Composition
Disbursements - Composition (₹ in crore) Sector-wise breakup of Disbursements in Q2 FY25 H1 Q2 12 M Discipline-wise FY 25 % FY 24 % FY 25 % FY 24 % FY 24 % Renewables incl Hydro Generation 11,161 Transmission 12 10,200 13 6,493 14 5,713 14 25,054 16 13% 5% Renewables incl Large 11,297 12 5,843 8 5,9
Slide 15: Outstanding Loans – Composition
Outstanding Loans – Composition (₹ in crore) State As at 88% Discipline-wise th 30 September 2024 th 30 September 2023 st 31 March 2024 Amount % Amount % Amount % State 4,80,818 88 4,29,140 90 4,54,647 89 Private 65,299 12 45,135 10 54,724 11 Total 5,46,117 100 4,74,275 100 5,09,371 100 Private Gene
Slide 16: PAN India presence – loan assets
(₹ in crore) J&K Haryana PAN India presence 10,583 6,704 Himachal Pradesh 1,570 – loan assets Assam 502 Punjab Uttarakhand Arunachal Pradesh 6,902 2,757 0 (0.46) Sikkim UP 3,300 Lending across 28 States 48,507 Rajasthan Bihar 61,196 14,039 State/ Joint Sector Borrowers Nagaland ₹4,80,818 crore 43 Ma
Slide 17: Outstanding Loans – Top 10 Major Borrowers
Outstanding Loans – Top 10 Major Borrowers Major State Borrowers (as at September 30, 2024) Amount Outstanding % of Total S. No. Top Ten Borrowers (₹ in crore) Loan Assets 1 Tamil Nadu Generation and Distribution Corporation Limited 34,472 6.31 2 Maharashtra State Electricity Distribution Company Li
Slide 18: Asset Quality
ASSET 03 QUALITY • Asset quality and provision coverage • Loan portfolio and ECL provisioning • Credit impaired assets and resolution status 18
Slide 19: Asset Quality and provisioning coverage
Asset Quality and provisioning coverage Improving Asset Quality Provision Coverage Ratio 72% 4.50% 71% 70.64% 70.46% 70.41% 70% 69.37% 3.42% 3.50% 3.28% 69% 3.14% 68.45% 68.48% 2.78% 2.71% 68% 2.61% 2.53% 67% 2.50% 66% 65.12% 65% 1.50% 64% 1.01% 0.97% 0.96% 0.82% 0.86% 0.82% 0.88% 63% 0.50% 62% Mar-
Slide 20: Loan Portfolio and ECL provisioning
Loan Portfolio and ECL provisioning (₹ in crore) Credit Impaired Assets (Stage – III) Standard Assets (Stage – I & II) Loan Particulars Total ECL # O/s Provision coverage Provision coverage O/s ECL O/s ECL ratio (%) ratio (%) @ State Sector -Generation 1,28,690 - - - 1,28,690 975 0.76% 975 -Renewabl
Slide 21: Credit Impaired Assets – Resolution Status
Credit Impaired Assets – Resolution Status • ₹12,296 crore in NCLT Under NCLT • 13 projects • 67% provision Resolution status • ₹1,528 crore resolution of Credit Impaired pursued outside NCLT Outside NCLT • 4 projects Assets • 50% provision 21
Slide 22: Borrowing Profile
BORROWING 04 PROFILE • Credit ratings for long term borrowings • Outstanding borrowings • Funds raised during the period 22
Slide 23: Credit Ratings for Long Term Borrowings
Credit Ratings for Long Term Borrowings Long-term International Ratings Japan Credit Rating Agency Baa3 (Stable)–Key Highlights BBB- (Stable)–Key Highlights BBB+ (Stable)–Key Highlights REC plays a very important role in the implementation of the REC Limited (REC) remains strategically important t
Slide 24: Outstanding Borrowings
Outstanding Borrowings (₹ in crore) th th st Term Loans 30 Sep, 30 Sep, 31 March from Banks, Particulars Institutional 2024 2023 2024 FIs, NSSF including 15% Subordinated (A) Domestic Borrowings Bonds Tax Free and 43% Institutional including Subordinated Bonds 2,02,776 1,61,141 1,81,471 Infra Bonds
Slide 25: Funds Raised During the Period
Funds Raised During the Period (₹ in crore) Q2 H1 12M Category FY25 FY24 FY25 FY24 FY24 (A) Long Term Capital Gains Bonds 2,098 2,914 4,254 5,457 11,421 Institutional Bonds/ Subordinate Debt 12,820 3,590 29,378 18,432 42,447 Loans from Banks/FIs/ NSSF 500 3,000 2,900 11,300 19,500 Foreign Currency B
Slide 26: Financial Highlights
FINANCIAL 05 HIGHLIGHTS • Key Financial Highlights • Key Ratios • Standalone Statement of Profit & Loss • Standalone Statement of Assets and Liabilities 26
Slide 27: Key Financial Highlights for H1 FY25
Key Financial Highlights for H1 FY25 Highest Ever Half Yearly Profit of ₹7,448 crore Total Income stands at ₹26,633 crore vs ₹22,571 crore ( 18% YoY) Net Interest Income stands at ₹9,723 crore vs ₹7,763 crore ( 25% YoY) Net Profit stands at ₹7,448 crore vs ₹6,734 crore ( 11% YoY) Loan book reache
Slide 28: Key Ratios
Key Ratios Q2 H1 12M Particulars FY 25 FY 24 FY 25 FY 24 FY 24 Yield on Loan Assets (%) 10.16 10.06 10.08 9.90 9.99 Cost of Funds (%) 7.18 7.32 7.12 7.17 7.13 Interest Spread (%) 2.98 2.74 2.96 2.73 2.86 Net Interest Margin (%) 3.66 3.75 3.64 3.41 3.57 Return on Net Worth (%) 22.06 24.34 21.03 22.30
Slide 29: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss (₹ in crore) Q2 H1 12M Particulars FY 25 FY 24 FY 25 FY 24 FY 24 Interest Income on Loan assets 13,187 11,213 25,687 21,678 45,659 Less: Finance Costs * 8,507 7,350 16,528 14,400 29,974 Net Interest Income 4,680 3,863 9,159 7,278 15,685 Other Operating Income 33
Slide 30: Standalone Statement of Assets and Liabilities
Standalone Statement of Assets and Liabilities (₹ in crore) Particulars As at 30.09.2024 As at 30.09.2023 As at 31.03.2024 Assets (1) Financial Assets Cash and bank balances 5,170 6,603 2,499 Derivative financial instruments 17,845 11,354 12,482 Loans (Ind-AS) 5,36,147 4,63,096 4,99,192 Investments
Slide 31: Financing India's Power & Progress Story
FINANCING INDIA'S POWER & PROGRESS STORY