Rec Limited · NSE:RECLTD
Rec — Q1 FY2024-25 Earnings Presentation
31 slides from Rec's earnings presentation, Jul 27, 2024
Slide 1: Investor Presentation Performance Highlights for Q1 FY 2024-25
FINANCING INDIA'S POWER & PROGRESS STORY Investor Presentation Performance Highlights for Q1 FY 2024-25 1
Slide 2: Table of Contents
1. REC Overview 2. Operational Performance Table of 3. Asset Quality Contents 4. Borrowing Profile 5. Financial Highlights 2
Slide 3: 1. REC Overview
FINANCING INDIA'S POWER & PROGRESS STORY 1. REC Overview ❑ Journey ❑ Key strengths ❑ Government’s trusted arm ❑ Maharatna status ❑ Foray into infra sector ❑ Shareholders outlook ❑ Awards and accolades 3
Slide 4: REC Journey
REC Journey • 1969: Journey • 2003: Mandate • 2010: Conferred IFC • 2021: Appointed as • 2023: Largest Green Bond began to develop broadened to status by RBI Nodal Agency for of USD 750 million by power financing all power RDSS South & South-East Asian infrastructure in segments issuer, first post I
Slide 5: Key Strengths
Key Strengths ‘Maharatna’ company and Healthy Asset Quality with strategic player in the Indian adequate provision coverage Power, Infrastructure & ratio Logistic sector 1 7 Nodal Agency – RDSS, Saubhagya, DDUGJY, Rooftop Diversified Asset Base with Solar (RTS) etc. robust Access to Diversified 2 Fu
Slide 6: Government’s Trusted Arm
Government’s Trusted Arm RDSS Rooftop Solar (RTS) SAUBHAGYA Programme NEF LPS Consumer Services DDUGJY Ratings of Discoms Integrated (Operational) Rating Of Discoms (Financial) 6
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 13 PSUs accorded this status Navratna Allows strategic investments
Slide 8: Foray into Infra Sector: For Nation’s Accelerated Development
Foray into Infra Sector: For Nation’s Accelerated Development REC has diversified its loan portfolio with a mandate of up to 33% loans in the Infrastructure and Logistics sector Health Sector Metro Ports Steel Infra Waterways IT Infra / Fiber Airport Optics Road & Highways Oil Refinery 8
Slide 9: Shareholders Outlook
Shareholders Outlook Earning per Share Book Value Shareholding Pattern Rs. 13.07 per Share as at 30.06.2024 (Annualised Rs. 274.77 Rs. 52.28) Consistent increase in share price from Rs. 166.25 as on PFC July 03, 2023 to Rs. 525.40 as on June 28, 2024, increase of ~ 216% within one year 52.63% 650 60
Slide 10: Shareholders Outlook cont..
Shareholders Outlook cont.. Top 10 Shareholders as at June 30, 2024 Dividend Payout as a % of Equity Share Capital Rank Particulars Shareholding (%) Consistently high dividend paying company 1 Power Finance Corporation Ltd 52.63 175% 160.00% 2 HDFC Balanced Advantage Fund 1.63 150% 3 Nippon India Qu
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 ‘Golden Peacock Award' ‘Asset Triple A Awards' ‘ASSOCHAM Award' For Risk Best Green Best Employer Management Bon
Slide 12: 2. Operational Performance
FINANCING INDIA'S POWER & PROGRESS STORY 2. Operational Performance ❑ Sanctions ❑ Disbursements ❑ Outstanding loans ❑ Pan India presence – Loan Assets ❑ Outstanding Loans – Major Borrowers ❑ Asset quality ❑ Loan Portfolio ❑ Credit impaired assets – Resolution status 12
Slide 13: Sanctions - Composition
Sanctions - Composition (Rs. in Crores) Q1 12M Sector-wise breakup of Sanctions in Q1 FY 25 Discipline-wise in FY 25 % FY 24 % FY 24 % Generation 35,552 31 15,519 17 67,112 19 Renewables incl Large Hydro 39,655 35 24,985 28 1,36,516 38 Generation Transmission 7,169 6 6,808 7 19,690 5 31% Distributio
Slide 14: Disbursements - Composition
Disbursements - Composition (Rs. in Crores) Sector-wise breakup of Disbursements in 12M FY24 Q1 12 M Discipline-wise FY 25 % FY 24 % FY 24 % Renewables incl Hydro Transmission Generation 4,667 11 4,446 13 25,054 16 12% 3% Renewables incl Large Hydro 5,351 12 1,534 5 16,024 10 Generation Transmission
Slide 15: Outstanding Loans – Composition
Outstanding Loans – Composition (Rs. in Crores) As at th th st Discipline-wise 30 June 2024 30 June 2023 31 March 2024 State Amount % Amount % Amount % 89% State 4,70,653 89 4,11,540 91 4,54,647 89 Private 59,086 11 42,853 9 54,724 11 Total 5,29,739 100 4,54,393 100 5,09,371 100 Generation 1,47,913
Slide 16: Pan India Presence - Loan Assets
Figures in Rs. Crores PAN INDIA J&K 10,262 Haryana 5,694 Himachal Pradesh PRESENCE - LOAN 1,590 Assam 506 ASSETS Punjab 6,998 Uttarakhand 2,802 Sikkim Arunachal Pradesh 0 (0.46) UP 3,352 Lending across 28 States 47,850 Rajasthan Bihar 61,214 13,829 State/ Joint Sector Borrowers Nagaland 44 Rs.4,70,6
Slide 17: Outstanding Loans – Major Borrowers
Outstanding Loans – Major Borrowers Major State Borrowers (as at June 30, 2024) Amount Outstanding % of Total S. No. Top Ten Borrowers (Rs. in Crores) Loan Assets 1 Tamil Nadu Generation and Distribution Corporation Limited 33,622 6.35 2 Maharashtra State Electricity Distribution Company Limited 27,
Slide 18: 3. Asset Quality
FINANCING INDIA'S POWER & PROGRESS STORY 3. Asset 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% 3.63% 70% 69.37% 3.42% 69.11% 3.50% 3.28% 69% 3.14% 68.45% 68.48% 2.78% 2.71% 68% 2.61% 67% 2.50% 66% 65% 1.50% 1.12% 64% 1.01% 0.97% 0.96% 0.82% 0.86% 0.82% 63% 0.50% 62% Dec-
Slide 20: Loan Portfolio and ECL provisioning
Loan Portfolio and ECL provisioning (Rs. in Crores) 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 1,26,187 - - - 1,26,187 851 0.67% 851 -Renew
Slide 21: Credit Impaired Assets – Resolution Status
Credit Impaired Assets – Resolution Status • Rs. 12,262 crores in NCLT * Under NCLT • 12 projects • 71% provision Resolution status • Rs.1,548 Crores resolution of Credit Impaired pursued outside NCLT Outside NCLT • 4 projects Assets • 49% provision * In respect of two of the stressed assets, Nagai
Slide 22: 4. Borrowing Profile
FINANCING INDIA'S POWER & PROGRESS STORY 4. Borrowing 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, Ltd. 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 impor
Slide 24: Outstanding Borrowings
Outstanding Borrowings (Rs. in Crores) th th st Term Loans 30 June 30 June 31 March Particulars from Banks, Institutional 2024 2023 2024 FIs, NSSF including 16% Subordinated (A) Domestic Borrowings Bonds Institutional including Subordinated Bonds 1,93,011 1,60,325 1,81,471 42% Tax Free and Loans fro
Slide 25: Funds Raised During the Period
Funds Raised During the Period (Rs. in Crores) Q1 12M Category FY25 FY24 FY24 (A) Long Term During Q1 FY 25, availed Capital Gains Bonds 2,156 2,543 11,421 SACE-Covered Green Institutional Bonds/ Subordinate Debt 16,558 14,842 42,447 Loan for ~ 60.536 Billion Loans from Banks/FIs/ NSSF 2,400 8,300 1
Slide 26: 5. Financial Highlights
FINANCING INDIA'S POWER & PROGRESS STORY 5. Financial Highlights ❑ Key Financial Highlights – Q1 FY 25 vs Q1 FY 24 ❑ Key Ratios ❑ Standalone Statement of Profit & Loss ❑ Standalone Statement of Assets and Liabilities 26
Slide 27: Key Financial Highlights – Q1 FY25 vs Q1 FY 24
Key Financial Highlights – Q1 FY25 vs Q1 FY 24 Robust and consistent loan book growth of 17% YoY Total Income stands at ₹ 13,037 crores vs ₹ 10,981 crores ( 19% YoY) Net Interest Income stands at ₹ 4,713 crores vs ₹ 3,612 crores ( 30% YoY) Net Profit stands at ₹ 3,442 crores vs ₹ 2,961 crores ( 1
Slide 28: Key Ratios
Key Ratios Q1 12M Particulars FY 25 FY 24 FY 24 Yield on Loan Assets (%) 9.99 9.82 9.99 Cost of Funds (%) 7.05 7.23 7.13 Interest Spread (%) 2.94 2.59 2.86 Net Interest Margin (%) 3.64 3.28 3.57 Return on Net Worth (%) 19.51 19.98 22.17 Interest Coverage Ratio (Times) 1.54 1.53 1.59 Debt Equity Rati
Slide 29: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Rs. in Crores Q1 12M Particulars FY 25 FY 24 FY 24 Interest Income on Loan assets 12,500 10,465 45,659 Less: Finance Costs * 8,026 7,053 29,974 Net Interest Income 4,474 3,412 15,685 Other Operating Income 237 260 1,013 Net notional gain/ (loss) on fair value ch
Slide 30: Standalone Statement of Assets and Liabilities
Standalone Statement of Assets and Liabilities Rs. in Crores Particulars As at 30.06.2024 As at 30.06.2023 As at 31.03.2024 Assets (1) Financial Assets Cash and bank balances 6,260 7,221 2,499 Derivative financial instruments 12,973 8,598 12,482 Loans (Ind-AS) 5,20,243 4,41,942 4,99,192 Investments
Slide 31: out
out Endless energy. infinite possibilties. A MAHARATNA COMPANY ¢) S (ay xin) @RECLindia | @ www.recindia.nic.in