Slide 1: Investor Presentation: Performance Highlights Q2 & H1 FY22
REC Limited A Navratna Company Investor Presentation Performance Highlights Q2 & H1 FY 22 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 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 a Notified Expertise Instit
Slide 5: Shareholding Pattern
Shareholding Pattern As at 30.06.2021 As at 30.09.2021 PFC, 52.63 PFC, 52.63 FPI, 26.15 FPI, 26.82 MFs, 9.39 MFs, 9.29 Others, 1.77 Insurance Others, 4.48 Individual/ Insurance Cos., 2.97 Corporates, HUF, 6.48 Cos., 0.12 0.61 Corporates, Individual/ 0.58 HUF, 6.08 Foreign Portfolio Investors (FPIs)
Slide 6: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at September 30, 2021 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 8.37 150% 3 The WindAcre Partnership Master Fu
Slide 7: Operational Performance
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Slide 8: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in Q2 & H1 FY 22 Generation Renewable Total Sanctions 24% 29% during H1 FY22 Rs. 34,472 crores T&D 47% (₹ in Crores) 12M Q2 H1 Discipline-wise FY 19 % FY 20 % FY 21 % FY 21 % FY 22 % FY 21 % FY 22 % Generation 43,282 37 57,362 52 44,301 29 4,9
Slide 9: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in Q2 & H1 FY 22 STL Renewable 4% Total Disbursements 10% Generation during H1 FY22 22% Rs. 36,825 crores Transmission 14% Distribution 50% (₹ in Crores) 12M Q2 H1 Discipline-wise FY19 % FY20 % FY21 % FY 21 % FY 22 % FY 21 % FY 22 % Ge
Slide 10: Outstanding Loans – Composition
Outstanding Loans – Composition State STL 86% Generation 1% 39% Renewable Energy 3% Transmission 17% Distribution Private 40% 10% Joint 4% (₹ in Crores) 0% As at st st st th Discipline-wise 31 March 2019 31 March 2020 31 March 2021 30 September 2021 Amount % Amount % Amount % Amount % State 2,26,681
Slide 11: Asset Diversification - PAN India Presence
J&K Haryana Figures in ₹ Crores 3,098 5,257 Himachal Pradesh 1,375 Assam 575 Punjab Uttarakhand Arunachal Pradesh Asset Diversification - 6,424 3,041 UP Sikkim 3 5,205 PAN India Presence Rajasthan 52,461 Bihar 36,731 10,762 Lending across 27 States and 2 Union Territories Nagaland 82 Manipur 147 Guj
Slide 12: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as at September 30, 2021) Amount % of Total S. No. Top Ten Borrowers Outstanding Loan Assets (₹ in Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 36,887 9.52% 2 Maharashtra State Electricity Distribution Company Limited 22,
Slide 13: Asset Quality
Asset Quality 13
Slide 14: Asset Quality as at September 30, 2021
Asset Quality as at September 30, 2021 Improving Asset Quality Increase in Provision Coverage Ratio 6% 69% 5.22% 67.63% 5.10% 66.48% 67% 5% 4.80% 4.70% 64.59% 4.84% 65% 4% 63% 3% 61% 61.87% 1.95% 59% 60.94% 2% 1.61% 1.52% 2.04% 1.71% 57% 1% Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 55% Sep-20 Dec-20 Mar-21
Slide 15: Loan Portfolio as at September 30, 2021
Loan Portfolio as at September 30, 2021 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 - Gencos 127,089 - - - 127,089 713 0.56 713 - Ren
Slide 16: Borrowing Profile
Borrowing Profile Domestic Credit Ratings for Long Term Borrowings “AAA” “AAA” “AAA” “AAA” International Issuer Ratings “BBB- ” “Baa3” 16
Slide 17: Outstanding Borrowings
Outstanding Borrowings (₹ in Crores) As at st st st th Particulars 31 March 2019 31 March 2020 31 March 2021 30 September 2021 Amount Amount Amount Amount % Corporate Bonds 135,184 158,148 179,989 172,618 52 Foreign Currency Borrowings 29,710 44,380 47,487 55,758 17 FCNR (B) Loans 5,048 6,973 5,329
Slide 18: Diversified Borrowing Profile
Diversified Borrowing Profile As at 30th September 2021 Corporate Bonds 18% Foreign Currency Borrowings 4% FCNR (B) Loans 52% 6% Capital Gain Bonds 3% Tax Free Bonds 17% Loans from Banks, FIs, NSSF etc. Infra Bonds ~ 72% of foreign currency exposure having remaining tenure of 5 years or more, hedged
Slide 19: Funds Raised During The Period
Funds Raised During The Period (₹ in Crores) 12M Q2 H1 Category FY19 FY20 FY21 FY21 FY22 FY21 FY22 (A) Long Term Capital Gains Bonds 6,652 6,157 5,312 977 1,816 1,837 3,104 Institutional Bonds/ Subordinate Debt 24,010 42,713 48,660 8,964 - 21,854 4,000 Loans from Banks/FIs/ NSSF 24,550 14,725 21,053
Slide 20: Funds Raised During The Period (Long Term)
Funds Raised During The Period (Long Term) Total Funds raised 64,946 75,998 89,872 23,722 (₹ Crores) % age 100% 90% 19.4 23.5 80% 37.8 36.9 70% 16.3 16.5 60% 8.1 5.9 15.0 50% 33.2 40% 10.2 30% 56.2 54.1 13.1 20% 37.0 10% 16.9 0% 2019 2020 2021 H1 FY22 Taxable Bonds 54EC Bonds ECB Banks/ FIs/ NSSF 20
Slide 21: Financial Highlights
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Slide 22: Key Financial Highlights
Key Financial Highlights All-time high quarterly Net Profit at ₹ 2,739 crores ❑ Total Income grown to ₹ 19,590 crores ( 14% YoY). ❑ Net Profit stands at ₹ 4,985 crores ( 24% YoY). ❑ Net Interest Income recorded at ₹ 7,903 crores ( 29% YoY). ❑ Loan book reached to ₹ 3.87 lakh crores (11% YoY)
Slide 23: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ in Crores Q2 H1 Particulars FY 21 FY 22 FY 21 FY 22 Interest Income on Loan assets 8,745 9,671 16,732 19,063 Less: Finance Costs 5,412 5,564 10,605 11,160 Net Interest Income 3,333 4,107 6,127 7,903 Other Operating Income 138 243 261 438 Net notional gain/ (lo
Slide 24: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ in Crores Particulars As at 31.03.2021 As at 30.06.2021 As at 30.09.2021 Assets (A) Financial Assets 396,951 402,707 410,576 Cash and bank balances 3,070 6,201 6,685 Derivative financial instruments 2,311 2,983 3,604 Loans (Ind-AS) 365,261 366,701 373,726 Invest
Slide 25: Key Ratios
Key Ratios Q2 H1 Particulars FY 21 FY 22 FY 21 FY 22 Yield on Loan Assets (%) 10.99 10.59 10.67 10.47 Cost of Funds (%) 7.17 6.73 7.38 6.88 Interest Spread (%) 3.82 3.86 3.29 3.59 Net Interest Margin (%) 4.19 4.50 3.90 4.29 Return on Net Worth (%) 22.57 23.44 21.39 21.87 Interest Coverage Ratio (Tim
Slide 26: Thank You
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