REC Ltd

- REC Limited has a healthy borrowing position with a current outstanding borrowing of INR4,58,794 crores, a 15% increase year-over-year. - Foreign currency borrowings have increased from 16% to about 29% of total borrowings, leveraging cheaper cost of funds with all-in cost below 6.7% including hedging. - No internal cap on foreign currency borrowing, with approvals sought from RBI as needed; around USD 700 million foreign currency borrowing currently available. - They have successfully raised USD 6 billion last year through RBI approvals applied thrice. - The company expects to maintain a capital adequacy ratio of 26.77%, indicating strong capital buffers. - While not explicitly mentioned, growth plans targeting doubling AUM by 2028-29 imply potential ongoing fundraises to support growth. - No specific mention of new equity fundraising plans in the available transcript. In summary, REC relies on both domestic and increasing foreign currency debt borrowings with no stated immediate equity raise plans.

- The distribution network in India is quite old (40-50 years) and will require standardization or replacement over the next 10 to 20 years, leading to significant capex in the distribution sector. - Renewable energy portfolio, currently 8% of the total loan book, is expected to increase to about 30% in the next 5 to 6 years. - Conventional generation, transmission, and distribution combined will make up about 50% to 60% of the portfolio. - Renewable energy projects under large hydro take 6-8 years to commission; other renewable projects like solar and wind typically commission in 2 to 3 years. - The loan book growth will focus on energy transition, including financing 74 GW thermal capacity projects mainly by state-owned entities and joint ventures. - Infrastructure and logistics portfolio targeted to go from 12% to about 20% by 2030. - Green energy corridor investments and storage solutions aligned with government’s energy transition goals.

- REC Limited aims to maintain a loan book growth trajectory of 15% to 20%, targeting more than 17% growth over the next four years. - Asset under management is expected to double to about INR 10 lakh crores by 2028-29, earlier than the initially anticipated 2030. - Renewable energy portfolio currently represents 8% of total loans but is expected to increase to about 30% in the next 5 to 6 years. - Conventional generation, transmission, and distribution together will continue to account for 50%-60% of the loan book. - Disbursements are targeted at INR 1.9 to 2 lakh crores for the current financial year, with about 40% from transmission and distribution, nearly 20% from renewable energy, and the remainder from conventional generation and infrastructure logistics. - The growth in renewable energy disbursements is expected to be substantial with a focus on projects backed by PPAs and growing competition in the sector.

- REC Limited aims to maintain a growth trajectory between 15% to 20% in asset under management over the next few years, likely more than 17%. - With a 17% asset growth, the company expects to double its asset base to about INR 10 lakh crores by 2028-29, ahead of earlier estimates. - Q1 FY'25 net profit after tax grew by 16% YoY to INR 3,442 crores. - Net interest income increased by 30% YoY in Q1 FY'25. - Net interest margin improved to 3.64% in Q1 FY'25 and management expects to sustain >3.6% over the next 4-5 years. - Return on net worth stands strong at 19.51%. - Growth driven by expanding renewable energy portfolio (target 30% share in 5-6 years) and infrastructure logistics. - Profitability will be supported by competitive funding costs, lower provisioning, and an overall improving asset quality profile.

- The transcript does not explicitly mention the current or expected order book or pending orders for REC Limited. - However, it highlights strong sanctions and disbursement growth: Q1 sanctions at INR 1,12,791 crores (24% increase YoY) and disbursements at INR 43,652 crores (28% increase YoY). - The company has a robust loan book growing 17% YoY, with assets under management (AUM) at INR 5,29,739 crores. - Renewable energy sanctions grew 59% to INR 39,655 crores in Q1, with disbursements up 249% to INR 5,351 crores. - Infrastructure logistics sanctions rose 122% to INR 19,815 crores and disbursements by 78% to INR 7,982 crores. - Overall, REC projects a loan book growth of 15-20% annually and aims to double AUM by 2028-29. - The strong sanction and disbursement trends indicate a healthy pipeline and strong pending order execution momentum.