Rec Limited · NSE:RECLTD
Rec — H1 FY2020 Earnings Presentation
28 slides from Rec's earnings presentation, Nov 5, 2019
Slide 1: REC Limited Investor Presentation Q2 & H1 FY20
REC Limited (Formerly Rural Electrification Corporation Limited) A Navratna Company Investor Presentation Performance Highlights Q2 & H1 FY 20 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 Management Team With Nodal Agency for Sector providing 24x7 Expertise quality power to all 600,000 K
Slide 5: Board of Directors
Board of Directors Experienced Team with sector experience Chairman and Managing Director on the Board of REC w.e.f. March 6, 2019 and also Director (Finance), REC Mr. Ajeet Kumar since August 1, 2012 Agarwal Experience in the field of Financial Management and Operations encompassing organizational
Slide 6: Board of Directors
Board of Directors Experienced Team with sector experience Mr. Aravamudan Served SBI in various capacities for >39 yrs, elevated to position of MD & Group Executive. Krishna Kumar Was also on the Boards of SBICAP Securities, SBI Life Insurance, SBI General Insurance and SBI Credit Cards Independent
Slide 7: Board of Directors
Board of Directors Experienced Team with sector experience Professor T.T. Ram Specializes in financial sector. Previously, Divisional Manager with Tata Economic Mohan Consultancy Services. Carried out policy studies for Govt and international agencies and Independent Director consulting assignments
Slide 8: Shareholding Pattern
Shareholding Pattern As at 30.06.2019 As at 30.09.2019 PFC, 52.63 PFC, 52.63 FPI, 27.05 FPI, 28.93 MFs, 9.19 MFs, 7.15 Others, 1.28 Others, 1.52 Insurance Individual/ Cos., 3.02 Individual/ Insurance Corporates, Corporates, Cos., 2.97 HUF, 5.78 HUF, 5.81 1.05 0.99 FPIs have consistently held more th
Slide 9: Shareholders Outlook
Shareholders Outlook Top 10 Share holders as at Sept 30, 2019 Dividend Payout as a % of Equity Share Capital Rank Particulars Shareholding (%) Consistently high dividend paying company 1 Power Finance Corporation ltd 52.63 125% HDFC Trustee Company Ltd. A/C HDFC 2 2.31 110.00% Balanced Advantage Fun
Slide 10: Operational Performance
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Slide 11: Sanctions - Composition
Sanctions - Composition Sector-wise breakup of Sanctions in Q2 & H1 FY20 Generation Project Loans 53% Sanctioned in STL H1 FY20 : Rs. 64,098 cr 2% T&D 37% Renewable 8% 12M Q2 H1 Discipline-wise FY17 % FY 18 % FY 19 % FY 19 % FY 20 % FY 19 % FY 20 % Generation 28,209 34 53,224 49 43,282 37 18,642 38
Slide 12: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in Q2 & H1 FY20 STL 7% growth in 5% Renewable Project Loans Generation 11% 23% H1 FY20 vs H1 FY19 Distribution 41% Transmission 20% 12M Q2 H1 Discipline-wise FY 17 % FY18 % FY19 % FY 19 % FY 20 % FY 19 % FY 20 % Generation 21,697 37 18
Slide 13: Outstanding Loans – Composition
Outstanding Loans – Composition State STL Generation 81% 1% 42% Customer-wise Category-wise breakup breakup of Renewable of Loans as at Distribution Transmission Private Loans as at 34% Energy 30th Sept 2019 Joint 18% 12% 30th Sept 2019 5% 7% As at st st st th Discipline-wise 31 March 2017 31 March
Slide 14: Outstanding Loans - Asset Diversification
J&K and Ladakh Haryana 246 6,011 Figures in Rs. Crores Himachal 948 Assam 588 Punjab Uttarakhand Arunachal 7,401 2,392 Outstanding Loans - UP 30,042 Sikkim 4,829 10 Asset Diversification Rajasthan 32,980 Bihar 12,436 PAN India Presence with loan concentration across Nagaland 27 states and 3 Union Te
Slide 15: Outstanding Loans – Loan Concentration
Outstanding Loans –Loan Concentration Major Borrowers (as on Sept 30, 2019) S.No. Top Ten Borrowers Amount % of Total Loan Outstanding Assets (Rs Cr.) 1 Maharashtra State Electricity Distribution Company Limited 20,102 6.68% 2 Tamil Nadu Generation and Distribution Corporation 15,865 5.28% 3 Maharas
Slide 16: Asset Quality
Asset Quality 16
Slide 17: Asset Quality & Provision Coverage
Asset Quality & Provision Coverage As at Sept 30, 2019 Figures : Rs. Crores Utility Total Loan Credit Impaired Assets (NPAs) Standard Assets Total Outstanding (Stage – III) (Stage – I & II) Provision* Outstanding Provision Provision coverage Outstanding Provision Provision coverage ratio (%) ratio (
Slide 18: Borrowing Profile
Borrowing Profile Domestic Ratings “AAA” “AAA” “AAA” “AAA” International Ratings “BBB - ” “Baa3” 18
Slide 19: Outstanding Borrowings
Outstanding Borrowings Rs. Crores Particulars As at st st st th 31 March 2017 31 March 2018 31 March 2019 30 Sept 2019 Institutional, Subordinate 113,449 128,871 135,184 1,45,672 & Zero Coupon Bonds Foreign Currency Borrowings 21,081 25,996 29,710 36,603 FCNR (B) Loans - 3,811 5,048 6,008 Capital Ga
Slide 20: Outstanding Borrowings
Outstanding Borrowings Total Borrowings (Rs. Cr.) 1,67,517 1,98,791 239,286 257,412 % age 100% 7.6 6.4 5.3 4.9 1.6 3.3 2.3 90% 1.9 2.1 2.3 12.6 13.1 12.4 14.2 80% 0.4 0.2 70% 11.6 10.3 10.6 11.9 60% 10.0 9.0 50% 40% 67.8 64.9 30% 56.6 56.7 20% 10% 0% 2017 2018 2019 H1 FY20 Taxable Bonds 54EC Bonds B
Slide 21: Funds Raised During The Period
Funds Raised During The Period Rs. Crores Category 12M Q2 H1 FY17 FY18 FY19 FY19 FY20 FY19 FY20 (A) Long Term Capital Gains Bonds 7,663 9,565 6,652 1,677 1,592 2,899 2,856 Institutional Bonds/ Subordinate Debt 18,600 26,145 24,010 5,000 9,581 5,000 17,613 Term Loans from Banks/FIs/ NSSF - - 24,550 2
Slide 22: Funds Raised During The Period (Long Term)
Funds Raised During The Period (Long Term) Total Funds raised 28,495 47,406 64,946 31,440 (Rs. Cr.) % age 100% 7.8 11.9 90% 24.7 80% 37.8 26.9 23.1 70% 20.2 60% 9.1 15.0 50% 40% 10.2 65.3 30% 56.0 55.2 20% 37.0 10% 0% 2017 2018 2019 H1 FY20 Taxable Bonds 54EC Bonds ECB Banks/ FIs/ NSSF 22
Slide 23: Financial Highlights
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Slide 24: Key Financial Highlights
Key Financial Highlights ❑ Total Income for H1 FY20 and Q2 FY20 stands at Rs. 14,414 crores (up 20% Y-o-Y) and Rs. 7,425 crores (up 19% Y-o-Y) respectively. ❑ PAT for H1 FY20 and Q2 FY20 stands at Rs. 2,808 crores and Rs. 1,307 crores respectively. ❑ Loan book as at 30th Sept 2019 stands at Rs. 3,00
Slide 25: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Rs. Crores 12M Q2 H1 Particulars FY 18 FY 19 FY19 FY 20 FY19 FY 20 Interest Income on Loan assets 21797 24,728 5,998 7,347 11,667 14,266 Less: Finance Costs 13362 15,676 3,783 4,725 7,413 9,298 Net Interest Income 8,435 9,052 2,215 2,622 4,254 4,968 Other Operat
Slide 26: Statement of Assets and Liabilities
Statement of Assets and Liabilities Rs. Crores Particulars As at 31.03.2019 As at 30.09.2019 Assets (A) Financial Assets 2,94,590 3,16,700 Cash and Bank 343 3,397 Other Bank Balances 1,253 416 Derivative financial instruments 1,803 2,214 Loans 2,70,451 2,89,986 Investments 2,398 2,398 Other financia
Slide 27: Key Ratios
Key Ratios Q2 H1 Particulars FY 20 FY 19 FY 20 Yield on Interest bearing Loan Assets (%) 10.78 10.27 10.65 Cost of Funds (%) 7.48 7.16 7.48 Interest Spread (%) 3.30 3.11 3.17 Net Interest Margin (%) 3.86 3.80 3.73 Interest Coverage Ratio (Times) 1.39 1.63 1.42 Debt Equity Ratio (Times) 6.99 6.58 6.9
Slide 28: Thank You
Thank You 28