Rec Limited · NSE:RECLTD
Rec — Q4 FY2023-24 Earnings Presentation
31 slides from Rec's earnings presentation, Apr 30, 2024
Slide 1: Investor Presentation: Performance Highlights for Q4 & 12M FY 2023-24
FINANCING INDIA'S POWER & PROGRESS STORY Investor Presentation Performance Highlights for Q4 & 12M FY 2023-24 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 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 a Experienced Management strategic player in the Indian Team with Sector Expertise Power, Infrastructure and Logistics Sector 8 Nodal Agency for major Govt. 2 of India’s power sector programmes – RDSS, Diversified Asset Base with Saubhagya, DDUGJY, Rooftop robus
Slide 6: 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 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: Forayed into Infra Sector
Forayed 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: 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) 9
Slide 10: Shareholders Outlook
Shareholders Outlook Earning Book Value Shareholding Pattern per Share per Share as at 31.03.2024 Rs. 53.11 Rs. 261.22 Consistent increase in share price from Rs. 115.45 as on PFC Mar 31, 2023 to Rs. 451 as on March 28, 2024, increase of ~ 291% 52.63% 550 451.00 500 FPI/ FII 419.70 450 19.92% 400 35
Slide 11: Shareholders Outlook cont..
Shareholders Outlook cont.. Top 10 Shareholders as at March 31, 2024 Dividend Payout as a % of Equity Share Capital Rank Particulars Shareholding (%) Consistently high dividend paying company A Power Finance Corporation Ltd 52.63 175% B 160.00% Other than PFC (Top 10 shareholders) 1 HDFC Balanced Ad
Slide 12: 2. Operational Performance
FINANCING INDIA'S POWER & PROGRESS STORY 2. Operational Performance 12
Slide 13: Sanctions - Composition
Sanctions - Composition (Rs. in Crores) Q4 12 M Sector-wise breakup of Sanctions in 12M FY24 Discipline-wise in FY 23 % FY 24 % FY 23 % FY 24 % Generation 3,129 4 3,710 11 30,912 12 67,112 19 Renewables incl Hydro Generation 38% Renewables incl Large Hydro 350 1 11,462 35 21,554 8 1,36,516 38 19% Tr
Slide 14: Disbursements - Composition
Disbursements - Composition (Rs. in Crores) Sector-wise breakup of Disbursements in 12M FY24 Q4 12 M Discipline-wise FY 23 % FY 24 % FY 23 % FY 24 % Renewables incl Hydro Transmission Generation 6,939 19 4,179 11 18,054 19 25,054 16 10% 4% Generation Renewables incl Large Hydro 2,798 8 6,167 16 11,2
Slide 15: Outstanding Loans – Composition
Outstanding Loans – Composition (Rs. in Crores) As at st st st Discipline-wise 31 March 2022 31 March 2023 31 March 2024 State Amount % Amount % Amount % 89% State 3,50,456 91 3,93,225 90 4,54,647 89 Private 34,915 9 41,787 10 54,724 11 Total 3,85,371 100 4,35,012 100 5,09,371 100 Private Generation
Slide 16: Pan India Presence - Loan Assets
Figures in Rs. Crores PAN INDIA J&K 10,029 Haryana 5,613 PRESENCE - LOAN Himachal Pradesh 1,624 Assam 528 ASSETS Punjab 8,031 Uttarakhand 2,859 Sikkim Arunachal Pradesh 0 (0.46) UP 3,368 Lending across 28 States 46,670 Rajasthan Bihar 58,467 13,568 State/ Joint Sector Borrowers Nagaland 45 Rs.4,54,6
Slide 17: Outstanding Loans – Major Borrowers
Outstanding Loans – Major Borrowers Major State Borrowers (as at March 31, 2024) Amount Outstanding % of Total S. No. Top Ten Borrowers (Rs. in Crores) Loan Assets 1 Tamil Nadu Generation and Distribution Corporation Limited 50,792 9.97 2 Maharashtra State Electricity Distribution Company Limited 25
Slide 18: 3. Asset Quality
FINANCING INDIA'S POWER & PROGRESS STORY 3. Asset Quality 18
Slide 19: Asset Quality as at March 31, 2024
Asset Quality as at March 31, 2024 Improving Asset Quality Provision Coverage Ratio 72% 4.50% 4.03% 70.64% 71% 70.46% 70.41% 3.63% 70% 69.28% 69.11% 69.37% 3.42% 3.50% 3.28% 69% 3.14% 68.45% 2.78% 2.71% 68% 67% 2.50% 66% 65% 1.50% 1.24% 1.12% 64% 1.01% 0.97% 0.96% 0.82% 0.86% 63% 0.50% 62% Sep-22 De
Slide 20: Loan Portfolio as at March 31, 2024
Loan Portfolio as at March 31, 2024 (Rs. in Crores) Credit Impaired Assets (Stage – III) Standard Assets (Stage – I & II) Loan Particulars Provision coverage Provision coverage Total ECL # O/s O/s ECL O/s ECL ratio (%) ratio (%) @ State Sector - Generation 1,23,422 - - - 1,23,422 620 0.50% 620 - Ren
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 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) st st 31 March 31 March Particulars 2023 2024 Term Loans from Banks, (A) Domestic Borrowings FIs, NSSF 18% Corporate Bonds 1,56,868 1,81,471 Loans from Banks, FIs, NSSF, etc. 75,986 79,806 Corporate Tax Free Bonds Capital Gain Bonds 37,587 42,356 Bonds and 41%
Slide 25: Funds Raised During the Period
Funds Raised During the Period (Rs. in Crores) Q4 12M Category FY23 FY24 FY23 FY24 REC raised USD Green (A) Long Term bond of USD 750 million in April 2023, largest by Capital Gains Bonds 3,709 3,384 12,154 11,421 any South and South Institutional Bonds/ Subordinate Debt 11,753 9,375 25,545 42,447 E
Slide 26: 5. Financial Highlights
FINANCING INDIA'S POWER & PROGRESS STORY 5. Financial Highlights 26
Slide 27: Key Financial Highlights - 12M FY24 vs 12M FY23
Key Financial Highlights - 12M FY24 vs 12M FY 23 Highest ever Annual Net Profit of ₹ 14,019 crores Total Income stands at ₹47,214 crores vs ₹39,253 crores ( 20% YoY) Net Interest Income stands at ₹16,167 crores vs ₹13,714 crores ( 18% YoY) Net Profit stands at ₹14,019 crores vs ₹11,055 crores ( 2
Slide 28: Key Ratios
Key Ratios Q4 12M Particulars FY 23 FY 24 FY 23 FY 24 Yield on Loan Assets (%) 9.65 10.03 9.73 9.99 Cost of Funds (%) 7.17 7.14 7.28 7.13 Interest Spread (%) 2.48 2.89 2.45 2.86 Net Interest Margin (%) 3.29 3.60 3.38 3.57 Return on Net Worth (%) 21.34 24.06 20.35 22.17 Interest Coverage Ratio (Times
Slide 29: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Rs. in Crores Q4 12M Particulars FY 23 FY 24 FY 23 FY 24 Interest Income on Loan assets 9,904 12,168 38,360 45,659 Less: Finance Costs * 6,502 7,905 23,754 29,974 Net Interest Income 3,402 4,263 14,606 15,685 Other Operating Income 240 309 803 1,013 Net notional
Slide 30: Standalone Statement of Assets and Liabilities
Standalone Statement of Assets and Liabilities Rs. in Crores Particulars As at 31.03.2023 As at 31.03.2024 Assets (1) Financial Assets Cash and bank balances 1,987 2,499 Derivative financial instruments 8,982 12,482 Loans (Ind-AS) 4,22,084 4,99192 Investments 3,138 5,320 Other financial assets 24,40
Slide 31: A Maharatna Company
A MAHARATNA COMPANY OOOQS e@RECLindia | @ wwweecindia.nic.in