Slide 1: Five Decades of Relentless Growth
REC Limited A Navratna Company Investor Presentation Performance Highlights Q3 & 9M FY 21 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 30.09.2020 As at 31.12.2020 PFC, 52.63 PFC, 52.63 FPI, 25.93 FPI, 26.37 MFs, 9.40 MFs, 9.45 Others, 1.53 Insurance Others, 1.49 Individual/ Cos., 2.97 Insurance Corporates, Individual/ Cos., 3.03 HUF, 6.80 Corporates, 0.74 HUF, 6.36 0.67 Foreign Portfolio Investors (FPIs)
Slide 6: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at December 31, 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 8.97 125% 3 The WindAcre Partnership Master Fun
Slide 7: Operational Performance
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Slide 8: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in Q3 & 9M FY 21 Promoting Green Generation Energy Renewable 29% 12% T&D 59% (₹ in Crores) 12M Q3 9M 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 18,082 59 16,607 60 52,559 55
Slide 9: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in Q3 & 9M FY 21 17% growth in total STL 1% Generation Renewable Disbursements 28% 4% 9M FY20 vs 9M FY21 Distribution Transmission 56% 11% (₹ in Crores) 12M Q3 9M Discipline-wise FY18 % FY19 % FY20 % FY 20 % FY 21 % FY 20 % FY 21 % Gen
Slide 10: Outstanding Loans – Composition
Outstanding Loans – Composition State 83% Generation 41% Renewable Distribution Transmission Energy Private 37% 17% 5% 11% Joint 6% (₹ in Crores) 0% As at st st st st Discipline-wise 31 March 2018 31 March 2019 31 March 2020 31 Dec 2020 Amount % Amount % Amount % Amount % State 186,445 78 226,681 81
Slide 11: Asset Diversification - PAN India Presence
J&K and Ladakh Haryana 1971 5,648 Figures in ₹ Crores Himachal Pradesh 1,274 Assam 594 Punjab Uttarakhand Arunachal Pradesh Asset Diversification - 6,711 3,106 UP Sikkim 6 5,236 PAN India Presence Rajasthan 41,200 Bihar 38,080 14,094 Lending across 27 States and 3 Union Territories Nagaland 99 Manip
Slide 12: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as at December 31, 2020) Amount % of Total S. No. Top Ten Borrowers Outstanding Loan Assets (₹ Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 25,845 7.24% 2 Maharashtra State Electricity Distribution Company Limited 22,739
Slide 13: Asset Quality
Asset Quality 13
Slide 14: Asset Quality as at December 31, 2020
Asset Quality as at December 31, 2020 9.00% 65.00% Increase in Provision Coverage Ratio Improving Asset Quality 61.87% 8.00% 60.94% 7.24% 7.18% 60.00% 6.86% 7.00% 6.59% 6.11% 6.00% 6.40% 55.00% 5.22% 52.89% 5.00% 50.68% 5.10% 50.00% 4.00% 3.79% 3.72% 3.47% 3.16% 3.32% 49.40% 49.64% 2.88% 47.66% 48.2
Slide 15: Loan Portfolio as at December 31, 2020
Loan Portfolio as at December 31, 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 122,278 - - - 122,278 316 0.26 316 - Renewab
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 st 31 Dec 2020 2018 2019 2020 Amount Amount Amount Amount % Corporate Bonds 128,871 135,184 158,148 171,832 56.0 Foreign Currency Borrowings 25,996 29,710 44,380 43,514 14.2 FCNR (B) Loans 3,811 5,048 6,973 7,196
Slide 18: Diversified Borrowing Profile
Diversified Borrowing Profile As at 31st December 2020 0% Corporate Bonds 17% Foreign Currency Borrowings 4% FCNR (B) Loans Capital Gain Bonds 7% 56% 2% Tax Free Bonds 14% Loans from Banks, FIs, NSSF etc. Infra Bonds ~ 72% of foreign currency exposure with 5 years’ residual maturity hedged 18
Slide 19: Funds Raised During The Period
Funds Raised During The Period (₹ Crores) 12M Q3 9M Category FY18 FY19 FY20 FY20 FY21 FY20 FY21 (A) Long Term Capital Gains Bonds 9,565 6,652 6,157 1,597 1,210 4,453 3,047 Institutional Bonds/ Subordinate Debt 26,145 24,010 42,713 8,859 12,359 26,472 34,213 Loans from Banks/FIs/ NSSF - 24,550 14,725
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 59,389 (₹ Crores) % age 100% 0.0 90% 19.4 23.6 24.7 80% 37.8 70% 16.3 13.7 20.2 60% 8.1 5.1 15.0 50% 40% 10.2 30% 56.2 57.6 55.2 20% 37.0 10% 0% 2018 2019 2020 9M FY 21 Taxable Bonds 54EC Bonds ECB Banks/ FIs/ NSSF 20
Slide 21: Financial Highlights
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Slide 22: Key Financial Highlights for Q3FY21
Key Financial Highlights for Q3FY21 All-time high quarterly profits at ₹ 2,263 crores ❑ Total Income grown to ₹ 9,047 crores ( 18%) ❑ Net Interest Income recorded at ₹ 3,379 crores ( 25%) ❑ Loan book reached to ₹ 3.57 lakh crores (16% ) ❑ Assets Quality improved with Net Credit impaired Asset
Slide 23: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ Crores Q3 9M Particulars FY20 FY 21 FY20 FY 21 Interest Income on Loan assets 7,465 8,825 21,731 25,557 Less: Finance Costs 4,768 5,446 14,055 16,051 Net Interest Income 2,697 3,379 7,676 9,506 Other Operating Income 79 97 220 358 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 31.12.2020 Assets (A) Financial Assets 343,497 375,988 Cash and bank balances 3,700 2,509 Derivative financial instruments 3,319 2,456 Loans (Ind-AS) 312,084 345,625 Investments 2,313 3,270 Other financial assets 22,081
Slide 25: Key Ratios
Key Ratios Q3 9M Particulars FY20 FY21 FY20 FY21 Yield on Loan Assets (%) 10.62 10.61 10.67 10.71 Cost of Funds (%) 7.33 7.19 7.47 7.29 Interest Spread (%) 3.29 3.42 3.20 3.42 Net Interest Margin (%) 3.83 4.05 3.76 3.98 Return on Net Worth (%) 17.44 22.08 16.30 21.84 Interest Coverage Ratio (Times)
Slide 26: Thank You
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