Slide 1: More than Five Decades of Relentless Growth
REC Limited A Navratna Company Investor Presentation Performance Highlights Q1 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 31.03.2021 As at 30.06.2021 PFC, 52.63 PFC, 52.63 FPI, 26.75 FPI, 26.15 MFs, 9.07 MFs, 9.39 Others, 1.70 Insurance Others, 1.77 Individual/ Insurance Cos., 2.98 Individual/ Corporates, HUF, 6.29 Cos., 2.97 Corporates, HUF, 6.48 0.58 0.61 Foreign Portfolio Investors (FPIs)
Slide 6: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at June 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 8.43 150% 3 The WindAcre Partnership Master Fund LP
Slide 7: Operational Performance
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Slide 8: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in Q1 FY 22 Promoting Green Generation Renewable Energy 29% 16% T&D 55% (₹ in Crores) 12M Q1 Discipline-wise FY 19 % FY 20 % FY 21 % FY 21 % FY 22 % Generation 43,282 37 57,362 52 44,301 29 17,930 43 5,061 29 Renewable Energy 11,875 10 7,026 6
Slide 9: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in Q1 FY 22 Total Disbursements Generation Renewable during Q1 FY22 STL 6% 21% 25% Rs. 15,095 crores Distribution 25% Transmission 23% (₹ in Crores) 12M Q1 Discipline-wise FY19 % FY20 % FY21 % FY 21 % FY 22 % Generation 20,462 29 29,30
Slide 10: Outstanding Loans – Composition
Outstanding Loans – Composition State STL 84% Generation 1% 41% Renewable Transmission Energy Distribution 16% 4% Private 38% 10% Joint 6% (₹ in Crores) 0% As at st st st th Discipline-wise 31 March 2019 31 March 2020 31 March 2021 30 June 2021 Amount % Amount % Amount % Amount % State 2,26,681 81 2
Slide 11: Asset Diversification - PAN India Presence
J&K Haryana Figures in ₹ Crores 1,957 5,376 Himachal Pradesh 1,324 Assam 575 Punjab Uttarakhand Arunachal Pradesh Asset Diversification - 6,385 3,092 UP Sikkim 3 5,221 PAN India Presence Rajasthan 50,324 Bihar 36,870 14,878 Lending across 27 States and 2 Union Territories Nagaland 82 Manipur 135 Guj
Slide 12: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as at June 30, 2021) Amount % of Total S. No. Top Ten Borrowers Outstanding Loan Assets (₹ in Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 28,506 7.51% 2 Maharashtra State Electricity Distribution Company Limited 23,145 6
Slide 13: Asset Quality
Asset Quality 13
Slide 14: Asset Quality as at June 30, 2021
Asset Quality as at June 30, 2021 Improving Asset Quality Increase in Provision Coverage Ratio 9% 70% 8% 66.48% 64.59% 7% 6.59% 65% 6.11% 6% 5.10% 60.94% 5.22% 4.80% 61.87% 5% 60% 4.84% 4% 3.32% 2.88% 55% 3% 1.95% 52.89% 2% 2.04% 1.61% 50% 1.71% 1% 49.64% Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 45
Slide 15: Loan Portfolio as at June 30, 2021
Loan Portfolio as at June 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 129,247 - - - 129,247 387 0.30 387 - Renewabl
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 June 2021 Amount Amount Amount Amount % Corporate Bonds 135,184 158,148 179,989 178,814 55 Foreign Currency Borrowings 29,710 44,380 47,487 48,434 15 FCNR (B) Loans 5,048 6,973 5,329 10,55
Slide 18: Diversified Borrowing Profile
Diversified Borrowing Profile As at 30th June 2021 Corporate Bonds 17% Foreign Currency Borrowings 4% FCNR (B) Loans 6% 55% Capital Gain Bonds 3% Tax Free Bonds 15% Loans from Banks, FIs, NSSF etc. Infra Bonds ~ 70% of foreign currency exposure with 5 years’ residual maturity hedged 18
Slide 19: Funds Raised During The Period
Funds Raised During The Period (₹ in Crores) 12M Q1 Category FY19 FY20 FY21 FY21 FY22 (A) Long Term Capital Gains Bonds 6,652 6,157 5,312 860 1,288 Institutional Bonds/ Subordinate Debt 24,010 42,713 48,660 12,890 4,000 Loans from Banks/FIs/ NSSF 24,550 14,725 21,053 3,265 4,500 Foreign Currency Bor
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 10,219 (₹ Crores) % age 100% 90% 19.4 23.5 80% 37.8 44.0 70% 16.3 16.5 60% 8.1 5.9 15.0 4.2 50% 12.6 40% 10.2 30% 56.2 54.1 20% 37.0 39.1 10% 0% 2019 2020 2021 Q1 FY22 Taxable Bonds 54EC Bonds ECB Banks/ FIs/ NSSF 20
Slide 21: Financial Highlights
Financial Highlights 21
Slide 22: Key Financial Highlights for Q1 FY22
Key Financial Highlights for Q1 FY22 Total Income grown to ₹ 9,592 crores ( 18% YoY). Net Interest Income recorded at ₹ 3,804 crores ( 36% YoY). Loan book reached to ₹ 3.79 lakh crores (15% YoY) Assets Quality improved with Net Credit impaired Assets at 1.61% (vs. 2.88% YoY) Provision C
Slide 23: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ in Crores Q1 Particulars FY 21 FY 22 Interest Income on Loan assets 7,987 9,392 Less: Finance Costs 5,193 5,588 Net Interest Income 2,794 3,804 Other Operating Income 122 195 Net notional gain/ (loss) on fair value changes 312 (81) Other Income 1 5 Total Incom
Slide 24: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ in Crores Particulars As at 30.06.2020 As at 31.03.2021 As at 30.06.2021 Assets (A) Financial Assets 362,906 396,951 402,707 Cash and bank balances 11,957 3,070 6,201 Derivative financial instruments 3,816 2,311 2,983 Loans (Ind-AS) 322,376 365,261 366,701 Inves
Slide 25: Key Ratios
Key Ratios Q1 Particulars FY 21 FY 22 Yield on Loan Assets (%) 10.53 10.60 Cost of Funds (%) 7.19 6.89 Interest Spread (%) 3.34 3.71 Net Interest Margin (%) 3.68 4.22 Return on Net Worth (%) 20.30 20.17 Interest Coverage Ratio (Times) 1.48 1.49 Debt Equity Ratio (Times) 7.68 7.05 Earnings per Share
Slide 26: Thank You
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