Slide 1: REC Limited – Performance Highlights Q2 & H1 FY21
REC Limited (Formerly Rural Electrification Corporation Limited) A Navratna Company Investor Presentation Performance Highlights Q2 & H1 FY 21 ICAI award for Excellence in Financial Reporting (2018-19) 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 Expertise a Notified Instit
Slide 5: Shareholding Pattern
Shareholding Pattern As at 30.06.2020 As at 30.09.2020 PFC, 52.63 PFC, 52.63 FPI, 26.59 FPI, 25.93 MFs, 9.30 MFs, 9.40 Others, 1.68 Insurance Others, 1.53 Insurance Individual/ Cos., 2.97 Corporates, Individual/ Cos., 2.97 HUF, 6.05 Corporates, 0.78 HUF, 6.80 0.74 Foreign Portfolio Investors (FPIs)
Slide 6: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at Sep 30, 2020 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 8.62 125% 3 Life Insurance Corporation Of India 2.78
Slide 7: Operational Performance
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Slide 8: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in H1 FY 21 Generation Renewable 68% increase in Sanctions 21% 13% H1 FY21 Vs H1 FY20 STL 0% T&D 66% (₹ in Crores) 12M Q2 H1 Discipline-wise FY 18 % FY 19 % FY 20 % FY 20 % FY 21 % FY 20 % FY 21 % Generation 53,224 49 43,282 37 57,362 52 28,44
Slide 9: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in H1 FY 21 STL 31% growth in total 1% Generation Renewable 5% Disbursements 27% H1 FY20 vs H1 FY21 Distribution Transmission 55% 12% (₹ in Crores) 12M Q2 H1 Discipline-wise FY18 % FY19 % FY20 % FY 20 % FY 21 % FY 20 % FY 21 % Generati
Slide 10: Outstanding Loans – Composition
Outstanding Loans – Composition State STL 82% Generation 0% 42% Transmission Renewable Distribution 17% Energy Private 36% 5% 11% Joint 7% (₹ in Crores) 0% As at st st st th Discipline-wise 31 March 2018 31 March 2019 31 March 2020 30 Sep 2020 Amount % Amount % Amount % Amount % State 186,445 78 226
Slide 11: Asset Diversification - PAN India Presence
J&K and Ladakh Haryana 337 5,674 Figures in ₹ Crores Himachal Pradesh 1,154 Assam 595 Punjab Uttarakhand Arunachal Pradesh Asset Diversification - 6,994 2,609 UP Sikkim 6 5,243 PAN India Presence Rajasthan 39,743 Bihar 38,003 13,926 Lending across 27 States and 3 Union Territories Nagaland 101 Manip
Slide 12: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as at September 30, 2020) Amount % of Total S. No. Top Ten Borrowers Outstanding Loan Assets (₹ Crores) 1 Maharashtra State Electricity Distribution Company Limited 23,295 6.68% 2 Tamil Nadu Generation and Distribution Corporation Limited 19,136
Slide 13: Asset Quality
Asset Quality 13
Slide 14: Asset Quality as at September 30, 2020
Asset Quality as at September 30, 2020 9.00% Improving Asset Quality 65.00% Increase in Provision Coverage Ratio 8.00% 7.24% 7.18% 60.94% 60.00% 6.86% 7.00% 6.59% 6.11% 6.00% 6.40% 55.00% 52.89% 5.00% 5.22% 50.68% 50.00% 4.00% 3.79% 3.72% 3.47% 3.16% 3.32% 49.40% 49.64% 2.88% 47.66% 48.21% 3.00% 2.0
Slide 15: Loan Portfolio as at Sep 30, 2020
Loan Portfolio as at Sep 30, 2020 Figures : ₹ 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 119,181 - - - 119,181 66 0.06 66 - Renewables 7,1
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 (₹ Crores) As at st st st Particulars 31 March 31 March 31 March th 30 Sep 2020 2018 2019 2020 Amount Amount Amount Amount % Corporate Bonds 128,871 135,184 158,148 166,748 55.8 Foreign Currency Borrowings 25,996 29,710 44,380 49,136 16.4 FCNR (B) Loans 3,811 5,048 6,973 4,612
Slide 18: Diversified Borrowing Profile
Diversified Borrowing Profile As at 30th September 2020 0% Corporate Bonds 15% Foreign Currency Borrowings 4% FCNR (B) Loans 7% Capital Gain Bonds 56% 2% Tax Free Bonds 16% Loans from Banks, FIs, NSSF etc. Infra Bonds ~ 66% of foreign currency exposure are hedged as on 30th September 2020 18
Slide 19: Funds Raised During The Period
Funds Raised During The Period (₹ Crores) 12M Q2 H1 Category FY18 FY19 FY20 FY20 FY21 FY20 FY21 (A) Long Term Capital Gains Bonds 9,565 6,652 6,157 1,592 977 2,856 1,837 Institutional Bonds/ Subordinate Debt 26,145 24,010 42,713 9,581 8,964 17,613 21,854 Loans from Banks/FIs/ NSSF - 24,550 14,725 3,
Slide 20: Funds Raised During The Period (Long Term)
Funds Raised During The Period (Long Term) Total Funds raised 47,406 64,946 75,998 42,682 (₹ Crores) % age 100% 0.0 90% 19.4 24.7 25.5 80% 37.8 70% 16.3 20.2 19.0 60% 8.1 15.0 4.3 50% 40% 10.2 30% 56.2 55.2 51.2 20% 37.0 10% 0% 2018 2019 2020 H1 FY 21 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 profits at ₹ 2,190 crores ❑ Total Income for H1 FY21 at ₹ 17,214 crores (up 20% YoY) as against Rs. 14,399 crores for H1 FY 20 ❑ Net Interest Income for H1 FY21 at ₹ 6,127 crores (up 23% YoY) as against Rs. 4,979 crores for H1 FY20 ❑ Loan book as
Slide 23: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ Crores Q2 H1 Particulars FY20 FY 21 FY20 FY 21 Interest Income on Loan assets 7,347 8,745 14,266 16,732 Less: Finance Costs 4,715 5,412 9,287 10,605 Net Interest Income 2,632 3,333 4,979 6,127 Other Operating Income 75 138 142 261 Net notional gain/ (loss) on
Slide 24: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ Crores Particulars As at 31.03.2020 As st 30.09.2020 Assets (A) Financial Assets 343,497 367,920 Cash and bank balances 3,700 3,114 Derivative financial instruments 3,319 3,129 Loans (Ind-AS) 312,084 337,081 Investments 2,313 2,656 Other financial assets 22,081
Slide 25: Key Ratios
Key Ratios Q2 H1 Particulars FY20 FY21 FY20 FY21 Yield on Loan Assets (%) 10.78 11.03 10.65 10.69 Cost of Funds (%) 7.48 7.26 7.48 7.33 Interest Spread (%) 3.30 3.77 3.17 3.36 Net Interest Margin (%) 3.86 4.19 3.71 3.91 Return on Net Worth (%) 14.37 22.57 15.79 21.39 Interest Coverage Ratio (Times)
Slide 26: Thank You
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