Rec Limited · NSE:RECLTD
Rec — Q1 FY2023-24 Earnings Presentation
31 slides from Rec's earnings presentation, August 2023
Slide 1: REC Limited Investor Presentation Q1 FY 2023-24
REC Limited A Maharatna Company Investor Presentation Performance Highlights Q1 FY 2023-24 54 Glorious years of contribution to the Sustainable Development of the Nation 1
Slide 2: Table of Contents
REC Overview Borrowing Profile Table of Operational Performance Contents Financial Highlights Asset Quality 2
Slide 3: REC Overview
—<— REC Overview
Slide 4: REC Journey
REC Journey Journey began to develop power Granted 54 Established 'Maharatna’ RECIPMT, a infrastructure in rural areas status, lending Glorious premier training mandate institute for the diversified to Years power sector Infra & Logistic 1969 1979 2022 Registered Appointed as as NBFC Nodal Agency wi
Slide 5: Key Strengths
Key Strengths Unique and close relationship with all major players – Public & Private - in Indian Power sector Registered as Occupies Strategic Position in the NBFC, PFI and Growth and IFC with RBI and development of the a Notified Power Sector across Institution to issue 54EC Bonds Nodal Agency Ind
Slide 6: Awards and Rankings
‘Best PSU' India's Top 20 in the Profitable Financial Services Companies by category by Moneycontrol Dun & Bradstreet Ranked 53rd in Fortune India 500 (2022) ‘Excellence in Corporate 'Operational Governance’ Performance Excellence' Golden Awarded by Peacock Indian Award Chamber of (2022) Commerce 6
Slide 7: Accorded Maharatna Status in FY 2022-23
The jewel that illuminates the nation shines even brighter REC "Accorded Maharatna Status A MAHARATNA COMPANY in FY 2022-23" Maharatna - Business advantages Allows strategic Accelerating Give greater investments by growth and operational & incorporating JVs, supporting financial Subsidiaries and Gov
Slide 8: Forayed into Infra Sector
Forayed into Infra Sector For Nation’s Accelerated Development Metro Road & Highways Diversifying the Loan Profile Ports Waterways IT Infra/Fiber Optics REC is now lending to Infrastructure and Logistics sector Airport Steel Infra Oil Refinery Health Sector 8
Slide 9: Government's Trusted Arm
Government’s Trusted Arm Consumer Service Ratings of Discoms (Operational) Annual Integrated Regulatory Rating of Parameters Discoms (Financial) NEF RDSS LPS- financial DDUGJY disruptive/ Cost of operation SAUBHAGYA 9
Slide 10: Shareholders Outlook
Shareholders Outlook Shareholding Pattern EPS EPS as at 30.06.2023 PFC, 52.63 (Quarter) (Annualised) FPI/ FII, 21.90 ₹ 11.24 ₹ 44.96 Book Value First Interim Per Share Dividend for Others, ₹ 231.22 FY24 0.72 Insurance ₹ 3.00 per share Cos., 4.21 Corporates Individual/ 1.48 MFs, 7.13 HUF, 11.93 10
Slide 11: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at June 30, 2023 Dividend Payout as a % of Equity Share Capital Rank Particulars Shareholding (%) Consistently high dividend paying company 1 Power Finance Corporation Ltd 52.63 150% 2 HDFC Trustee Company Limited 4.45 The WindAcre Partnership Master 3 3.3
Slide 12: Operational Performance
Operational Performance 12
Slide 13: Sanctions - Composition
Sanctions - Composition (₹ in Crores) Sector-wise breakup of Sanctions in 3M FY 24 Q1 Q4 12M E&M- Discipline-wise Others FY 24 % FY 23 % FY 23 % FY 23 % Generation Renewables 28% 4% 16% Generation 25,669 28 21,228 35 3,807 5 33,494 12 E & M - Others 3,114 4 14,434 24 3,000 4 25,969 10 STL including
Slide 14: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in 3M FY 24 (₹ in Crores) Q1 Q4 12M E&M- Renewables Discipline-wise Transmission FY 24 % FY 23 % FY 23 % FY 23 % Others 5% 2% 2% Distribution Generation 4,487 13 1,908 15 7,638 21 18,954 20 6% Generation 13% E & M – Others 849 3 - - 3,
Slide 15: Outstanding Loans – Composition
Outstanding Loans – Composition (₹ in Crores) As at th st st Discipline-wise 30 June 2023 31 March 2023 31 March 2022 State 91% Amount % Amount % Amount % State 4,11,540 91 3,93,225 90 3,50,456 91 Private 42,853 9 41,787 10 34,915 9 Logistic & Private Infrastructure 9% Total 4,54,393 100 4,35,012 10
Slide 16: Asset Diversification - PAN India
Asset Figures in ₹ Crores Diversification - J&K 10,448 Haryana 6,903 Himachal Pradesh PAN India 1,596 Assam 571 Punjab Presence Uttarakhand Arunachal Pradesh 6,676 3,023 1 Sikkim UP 3,644 48,906 Lending across 27 States and 1 Union Territories Rajasthan Bihar 49,422 14,559 State/ Joint Sector Borrow
Slide 17: Outstanding Loans – Major Borrowers
Outstanding Loans – Major Borrowers Major Borrowers (as at June 30, 2023) Amount Outstanding % of Total S. No. Top Ten Borrowers (₹ in Crores) Loan Assets 1 Tamil Nadu Generation and Distribution Corporation Limited 43,768 9.63 2 Uttar Pradesh Power Corporation Limited 20,060 4.41 3 Maharashtra Stat
Slide 18: Asset Quality
—<— Asset Quality
Slide 19: Asset Quality as at June 30, 2023
Asset Quality as at June 30, 2023 Improving Asset Quality Provision Coverage Ratio 75% 5.50% 74% 73% 4.41% 72% 4.50% 70.64% 4.03% 71% 70.46% 3.63% 70% 69.28% 69.11% 3.42% 69% 3.50% 3.28% 68.08% 68% 67% 66% 2.50% 65% 64% 1.41% 63% 1.50% 1.24% 1.12% 1.01% 0.97% 62% 61% 0.50% 60% Jun-22 Sep-22 Dec-22 M
Slide 20: Loan Portfolio as at June 30, 2023
Loan Portfolio as at June 30, 2023 (₹ in Crores) Credit Impaired Assets Standard Assets (Stage – III) (Stage – I & II) Particulars Loan O/s Total ECL* Provision Provision coverage O/s ECL O/s ECL coverage ratio (%) ratio (%) State Sector - Generation 1,12,531 - - - 1,12,531 846 0.75 846 - E & M – Ot
Slide 21: Credit Impaired Assets – Resolution Status
Credit Impaired Assets – Resolution Status Rs.13,008 crores in NCLT Under NCLT 14 projects Resolution status 74% provision of Credit Impaired Assets Rs.1,884 crores resolution pursued outside NCLT Outside NCLT 5 projects 46% provision 21
Slide 22: Borrowing Profile
—<— Borrowing Profile —
Slide 23: Domestic and International Credit Ratings
Domestic Credit Ratings for Long Term Borrowings “AAA” “AAA” “AAA” “AAA” International Issuer Ratings “BBB- (Stable)” “Baa3 (Stable)” 23
Slide 24: Outstanding Borrowings
Outstanding Borrowings (₹ in Crores) Particulars 30th June 2023 31st March 2023 Corporate Bonds Foreign Currency 40% Borrowings 21% Corporate Bonds 1,60,325 1,56,868 Foreign Currency Borrowings 83,464 78,440 FCNR (B) Loans 19,082 15,424 Capital Gain Bonds 38,908 37,587 FCNR (B) Loans Borrowing Capit
Slide 25: Funds Raised During The Period
Funds Raised During The Period (₹ in Crores) Q1 12M Category FY24 FY23 FY22 FY23 (A) Long Term Capital Gains Bonds 2,543 2,670 7,316 12,154 Institutional Bonds/ Subordinate Debt 14,842 - 9,080 25,545 Loans from Banks/FIs/ NSSF 8,300 2,150 25,850 22,911 Foreign Currency Borrowings 9,922 778 19,683 10
Slide 26: Financial Highlights
4 y Financial Sd Highlights
Slide 27: Key Financial Highlights for 3M FY24
Key Financial Highlights for 3M FY24 Total Income stands at ₹ 10,964 crores. ( 16% YoY). Net Profit stands at ₹ 2,961 crores ( 21% YoY). Loan book reached to ₹ 4.54 lakh crores (17% YoY) Assets Quality improved with Net Credit impaired Assets at 0.97% (vs. 1.41% YoY) Net-worth stands at ₹ 60,886
Slide 28: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ in Crores Q1 12M Particulars FY 23 FY 24 FY 23 Interest Income on Loan assets 10,465 9,262 38,360 Less: Finance Costs ** 7,053 5,382 23,754 Net Interest Income 3,412 3,880 14,606 Other Operating Income 244 167 802 Net notional gain/ (loss) on fair value change
Slide 29: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ in Crores Particulars As at 30.06.2023 As at 30.06.2022 As at 31.03.2023 Assets (A) Financial Assets 4,85,680 409,302 4,60,591 Cash and bank balances 7,221 1,325 1,987 Derivative financial instruments 8,598 6,577 8,982 Loans (Ind-AS) 4,41,942 3,74,578 4,22,084 I
Slide 30: Key Ratios
Key Ratios Q1 12M Particulars FY 24 FY 23 FY 23 Yield on Loan Assets (%) 9.82 10.07 9.73 Cost of Funds (%) 7.23 6.73 7.28 Interest Spread (%) 2.59 3.34 2.45 Net Interest Margin (%) 3.28 4.09 3.38 Return on Net Worth (%) 19.98 18.90 20.35 Interest Coverage Ratio (Times) 1.53 1.55 1.58 Debt Equity Rat
Slide 31: ars at
ars at REC aeifid wat, saat aera Endless energy. Infinite possibilities. 31