Rec Limited · NSE:RECLTD
Rec — Q4 FY2022 Earnings Presentation
26 slides from Rec's earnings presentation, 2022
Slide 1: More than Five Decades of Relentless Growth
REC Limited A Navratna Company Investor Presentation Performance Highlights Q4 & 12M FY 22 More than Five Decades of RELENTLESS GROWTH
Slide 2: Table of Contents and Disclaimer
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 Occupies Strategic relationship with all Position in the Growth major players – and development of Public & Private - in the Power Sector across Indian Power sector India Registered as Experienced NBFC, PFI and Management IFC with RBI and Team With a Notified Sector Institution to i
Slide 5: Shareholding Pattern
Shareholding Pattern As at 31.12.2021 As at 31.03.2022 PFC, 52.63 PFC, 52.63 FPI, 24.85 FPI, 24.27 MFs, 9.75 MFs, 9.24 Others, 4.46 Insurance Insurance Cos., 0.11 Others, 4.46 Cos., 0.12 Corporates, Individual/ Individual/ HUF, 7.40 Corporates, HUF, 8.33 0.80 0.95 Foreign Portfolio Investors (FPIs)
Slide 6: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at March 31, 2022 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 8.05 175% 3 The WindAcre Partnership Master Fund L
Slide 7: Operational Performance
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Slide 8: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in Q4& 12M FY 22 Generation Renewable Total Sanctions 30% 27% during the FY22 ₹ 54,421 crores STL 2% T&D 41% (₹ in Crores) 12M Q4 Discipline-wise FY 19 % FY 20 % FY 21 % FY 22 % FY 21 % FY 22 % Generation 43,282 37 57,362 52 44,301 28 16,081 3
Slide 9: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in Q4 & 12M FY 22 STL Total Disbursements 7% Generation during the FY22 31% ₹ 64,150 crores Renewable Distribution 4% 45% Transmission 13% (₹ in Crores) 12M Q4 Discipline-wise FY19 % FY20 % FY21 % FY 22 % FY 21 % FY 22 % Generation 20,
Slide 10: Outstanding Loans – Composition
Outstanding Loans – Composition State STL 86% Generation 1% 39% Renewable Energy 3% Transmission 17% Distribution Private 40% 9% Joint 5% (₹ in Crores) 0% As at st st st st Discipline-wise 31 March 2019 31 March 2020 31 March 2021 31 March 2022 Amount % Amount % Amount % Amount % State 2,26,681 81 2
Slide 11: Asset Diversification - PAN India Presence
J&K Haryana Figures in ₹ Crores 3,075 5,077 Himachal Pradesh 1,501 Assam 542 Punjab Uttarakhand Arunachal Pradesh Asset Diversification - 5,576 2,969 UP Sikkim 2 4,767 PAN India Presence Rajasthan 48,864 Bihar 41,230 10,740 Lending across 27 States and 2 Union Territories Nagaland 73 Manipur 186 Guj
Slide 12: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as at March 31, 2022) Amount % of Total S. No. Top Ten Borrowers Outstanding Loan Assets (₹ in Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 37,064 9.62% 2 Uttar Pradesh Power Corporation Limited 20,561 5.34% 3 Maharashtra
Slide 13: Asset Quality
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Slide 14: Asset Quality as at March 31, 2022
Asset Quality as at March 31, 2022 Stable Asset Quality Provision Coverage Ratio 70% 6% 67.63% 67.40% 66.48% 5.07% 65.72% 5% 4.84% 4.70% 65% 4.45% 4.80% 64.59% 4% 60% 3% 55% 2% 1.71% 1.74% 1.52% 1.45% 1.61% 1% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 50% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Gross Credit-imp
Slide 15: Loan Portfolio as at March 31, 2022
Loan Portfolio as at March 31, 2022 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 - Discoms 1,55,922 - - - 1,55,922 1,427 0.92 1,427 -
Slide 16: Credit Impaired Assets – Resolution Status
Credit Impaired Assets – Resolution Status Rs.11,906 crores in NCLT Under NCLT 13 projects 70% provision Resolution status of Credit Impaired Assets Rs.5,254 crores resolution pursued outside NCLT Outside NCLT 12 projects Highest Domestic Rating of “AAA”; Major Player in 60% provision International
Slide 17: Borrowing Profile
Borrowing Profile Domestic Credit Ratings for Long Term Borrowings “AAA” “AAA” “AAA” “AAA” International Issuer Ratings “BBB- ” “Baa3” 17
Slide 18: Outstanding Borrowings
Outstanding Borrowings (₹ in Crores) As at st st st st Particulars 31 March 2019 31 March 2020 31 March 2021 31 March 2022 Amount Amount Amount Amount % Corporate Bonds 135,184 158,148 179,989 152,692 47 Foreign Currency Borrowings 29,710 44,380 47,487 65,957 20 FCNR (B) Loans 5,048 6,973 5,329 9,85
Slide 19: Funds Raised During The Period
Funds Raised During The Period (₹ in Crores) 12M Q4 Category FY19 FY20 FY21 FY22 FY21 FY22 (A) Long Term Capital Gains Bonds 6,652 6,157 5,312 7,316 2,287 2,512 Institutional Bonds/ Subordinate Debt 24,010 42,713 48,660 9,080 14,447 - Loans from Banks/FIs/ NSSF 24,550 14,725 21,053 25,850 7,050 6,55
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 61,929 (₹ 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 2022 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 Highest ever annual Net Profit at ₹ 10,046 crores ❑ Total Income grown to ₹ 39,230 crores ( 11% YoY). ❑ Net Profit stands at ₹ 10,046 crores ( 20% YoY). ❑ Net Interest Income recorded at ₹ 15,741 crores ( 24% YoY). ❑ Loan book reached to ₹ 3.85 lakh crores (2% YoY) ❑
Slide 23: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ in Crores Q4 12M Particulars FY 21 FY 22 FY 21 FY 22 Interest Income on Loan assets 8,810 9,235 34,230 37,811 Less: Finance Costs 5,438 5,353 21,489 22,053 Net Interest Income 3,372 3,882 12,741 15,758 Other Operating Income 91 289 585 975 Net notional gain/ (
Slide 24: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ in Crores Particulars As at 31.03.2021 As at 31.03.2022 Assets (A) Financial Assets 396,951 406417 Cash and bank balances 3,070 2,422 Derivative financial instruments 2,311 5,510 Loans (Ind-AS) 365,261 371,931 Investments 1,910 2,158 Other financial assets 24,39
Slide 25: Key Ratios
Key Ratios Q4 12M Particulars FY 21 FY 22 FY 21 FY 22 Yield on Loan Assets (%) 10.27 10.11 10.28 10.29 Cost of Funds (%) 7.07 6.67 7.26 7.00 Interest Spread (%) 3.20 3.44 3.02 3.29 Net Interest Margin (%) 3.87 4.12 3.72 4.07 Return on Net Worth (%) 19.44 18.08 21.30 21.28 Interest Coverage Ratio (Ti
Slide 26: Thank You
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