Rec Limited · NSE:RECLTD
Rec — Q3 FY2023 Earnings Presentation
31 slides from Rec's earnings presentation, February 2023
Slide 1: REC Limited Investor Presentation: Performance Highlights Q3 and 9M FY23
REC Limited A Maharatna Company Investor Presentation Performance Highlights Q3 and 9M FY 23 More than Five Decades of RELENTLESS GROWTH 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 Our 50+ Established infrastructure in RECIPMT, a rural areas Conferred 'Maharatna’, Glorious premier training institute for the highest status for a CPSE Years power sector 1969 1979 2022 Registered as Appointed as NBFC with Nodal Agency RBI for RDSS 1998 2
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
Ranked 48th in Fortune India 500 ‘Best PSU' India's 25 Most in the Profitable Financial Services Companies category by by Dun & Business Bradstreet Today Premier Financial Institution ‘Financial Services' category by Titan Business Awards 6
Slide 7: Accorded Maharatna Status in September 2022
The jewel that illuminates the nation shines even brighter REC IS NOW "Accorded Maharatna Status A MAHARATNA COMPANY in September 2022". Maharatna - Business advantages. Allows strategic Accelerating Give greater investments by growth and operational & incorporating JVs, supporting financial Subsidi
Slide 8: Forayed into Infra Sector
Forayed into Infra Sector For Nation’s Accelerated Development Metro Road & Highways REC is now lending to Infrastructure and Logistics Ports Waterways IT Infra/Fiber Optics sector Diversifying the Loan Profile 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
Slide 10: Shareholders Outlook
Shareholders Outlook Shareholding Pattern EPS Book Value as at 31.12.2022 FPI, 23.40 (Annualised) Per Share PFC, 52.63 ₹ 40.79 ₹ 208.26 Bonus Dividend issued in Yield FY23 in 1:3 12.43%* Insurance Corporates Cos., 3.85 , 1.27 Individual MFs, 7.94 / HUF, 9.73 Others, 1.18 *Dividend Yield is based on
Slide 11: Shareholders Outlook
Shareholders Outlook Top 10 Shareholders as at December 31, 2022 Dividend Payout as a % of Equity Share Capital Rank Particulars Shareholding (%) Consistently high dividend paying company 1 Power Finance Corporation Ltd 52.63 175% 2 HDFC Trustee Company Ltd 5.33 153.00% The WindAcre Partnership Mast
Slide 12: Operational Performance
Operational Performance 12
Slide 13: Sanctions - Composition
Sanctions - Composition (₹ in Crores) Sector-wise breakup of Sanctions in 9M FY 23 12M Q3 9M Renewable Discipline-wise 11% FY 22 % FY 22 % FY 23 % FY 22 % FY 23 % Generation 16% Generation (including Power 16,081 30 5,539 61 2,601 5 13,785 32 30,722 16 Infra Projects) T&D 40% STL Renewables 14,734 2
Slide 14: Disbursements – Composition
Disbursements – Composition Sector-wise breakup of Disbursements in 9M FY 23 (₹ in Crores) 12M Q3 9M Discipline-wise FY 22 % FY 22 % FY 23 % FY 22 % FY 23 % Generation 28% Generation Renewable (including Power 20,750 32 6,779 57 9,307 31 15,467 32 16,740 28 15% Irrigation) Renewable 3,405 5 560 5 1,
Slide 15: Outstanding Loans – Composition
Outstanding Loans – Composition (₹ in Crores) State As at 90% st st Discipline-wise 31 March 2022 31 December 2022 Amount % Amount % Private State 3,50,456 91 3,71,869 90 10% Private 34,915 9 39,279 10 Total 3,85,371 100 4,11,148 100 STL Conventional 1% Generation Generation 1,56,724 41 1,61,641 39
Slide 16: Asset Diversification - PAN India
Asset Figures in ₹ Crores Diversification - J&K 6,751 Haryana 6,016 Himachal Pradesh PAN India 1,564 Assam 617 Punjab Presence Uttarakhand Arunachal Pradesh 5,969 2,947 2 Sikkim UP 3,964 47,654 Lending across 27 States and 2 Union Territories Rajasthan Bihar 44,405 14,124 State/ Joint Sector Borrowe
Slide 17: Outstanding Loans – Major Borrowers
Outstanding Loans – Major Borrowers Major Borrowers (as at December 31, 2022) Amount Outstanding S. No. Top Ten Borrowers % of Total Loan Assets (₹ in Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 39,233 9.54% 2 Uttar Pradesh Power Corporation Limited 19,005 4.62% 3 Telangana
Slide 18: Asset Quality
—<— Asset Quality
Slide 19: Asset Quality as at December 31, 2022
Asset Quality as at December 31, 2022 Stable Asset Quality 70% Provision Coverage Ratio 6% 69.28% 69.11% 5.07% 69% 5% 4.41% 68.08% 4.03% 4% 4.45% 68% 3.63% 67.40% 3% 67% 2% 1.74% 66% 65.72% 1.41% 1.24% 1.12% 1.45% 1% 65% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Gross Cre
Slide 20: Loan Portfolio as at December 31, 2022
Loan Portfolio as at December 31, 2022 (₹ 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 1,39,960 - - 1,39,960 937 0.67% 937 - Renewab
Slide 21: Credit Impaired Assets – Resolution Status
Credit Impaired Assets – Resolution Status Rs.11,646 crores in NCLT Under NCLT 12 projects Resolution status 77% provision of Credit Impaired Assets Rs.3,277 crores resolution pursued outside NCLT Outside NCLT 9 projects 40% provision Resolution/ Upgrade during Q3FY23: • 'Ind Bharat Energy Utkal Lim
Slide 22: Borrowing Profile
—<— Borrowing Profile —
Slide 23: Domestic Credit Ratings and International Issuer Ratings
Domestic Credit Ratings for Long Term Borrowings “AAA” “AAA” “AAA” “AAA” International Issuer Ratings “BBB- ” “Baa3” 23
Slide 24: Outstanding Borrowings
Outstanding Borrowings (₹ in Crores) st st 31 March 31 December Particulars Corporate Bonds Foreign Currency 2022 2022 42% Borrowings Corporate Bonds 152,692 147,465 21% Foreign Currency Borrowings 65,957 75,779 FCNR (B) Loans 9,855 14,488 Capital Gain Bonds 25,438 33,883 FCNR (B) Loans Borrowing Ca
Slide 25: Funds Raised During The Period
Funds Raised During The Period (₹ in Crores) 12M Q3 9M Category FY22 FY22 FY23 FY22 FY23 (A) Long Term Capital Gains Bonds 7,316 1,700 2,822 4,803 8,445 Institutional Bonds/ Subordinate Debt 9,080 5,080 11,055 9,080 13,793 Loans from Banks/FIs/ NSSF 25,850 10,550 6,660 19,300 16,050 Foreign Currency
Slide 26: Financial Highlights
4 y Financial Sd Highlights
Slide 27: Key Financial Highlights for 9M FY23
Key Financial Highlights for 9M FY23 Highest ever Quarterly Net Profit at ₹ 2,878 crores Total Income stands at ₹ 29,129 crores. Net Profit stands at ₹ 8,054 crores ( 4% YoY). Loan book reached to ₹ 4.11 lakh crores (6% YoY) Assets Quality improved with Net Credit impaired Assets at 1.12% (vs. 1.7
Slide 28: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss ₹ in Crores Q3 9M Particulars FY 22 FY 23 FY 22 FY 23 Interest Income on Loan assets 9,574 9,660 28,576 28,456 Less: Finance Costs ** 5,552 6,139 16,712 17,252 Net Interest Income 4,022 3,521 11,864 11,204 Other Operating Income 187 197 686 563 Net notional gain
Slide 29: Statement of Assets and Liabilities
Statement of Assets and Liabilities ₹ in Crores Particulars As at 31.03.2022 As at 30.09.2022 As at 31.12.2022 Assets (A) Financial Assets 4,06,417 4,19,846 4,35,235 Cash and bank balances 2,422 4,511 1,168 Derivative financial instruments 5,510 7,437 8,481 Loans (Ind-AS) 3,71,931 3,80,964 3,97,887
Slide 30: Key Ratios
Key Ratios Q3 9M Particulars FY 22 FY 23 FY 22 FY 23 Yield on Loan Assets (%) 10.13 9.92 10.25 9.90 Cost of Funds (%) 6.77 7.17 6.93 7.14 Interest Spread (%) 3.36 2.75 3.32 2.76 Net Interest Margin (%) 4.14 3.55 4.12 3.55 Return on Net Worth (%) 22.63 21.26 22.08 20.29 Interest Coverage Ratio (Times
Slide 31: Endless energy. Infinite possibilities.
ars at REC aeifid wat, saat aera Endless energy. Infinite possibilities. 31