RECLTD

SEC-1/187(2)/2024/1571 Dated: January 23, 2024 लिस्टिंग लिभाग, कॉपोरेट सिंबिंध लिभाग नेशनि टॉक एक्सचेंज ऑफ इिंलिया लिलिटेि बीएसई लिलिटेि एक्सचेंज प्लाजा, बािंद्रा कु िाा कॉम्प्प्लेक्स, पहिी ििंलजि, फीरोज जीजीभोय टािसा बािंद्रा (पूिा), िुिंबई - ४०० ०५१ दिाि टरीट, फोटा, िुिंबई - ४०० ००१ स्िप कोि—RECLTD स्िप कोि—532955 Listing Department, Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex, 1st Floor, Phiroze Jeejeebhoy Towers Bandra (East), Mumbai – 400 051. Dalal Street, Fort, Mumbai – 400 001. Scrip Code—RECLTD Scrip Code—532955 Sub: Intimation of video recording of investors conference call held on January 23, 2024. Sir/Madam, In continuation of our earlier letter dated January 19, 2024, and pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the video recording of investors conference call of REC Limited held on January 23, 2024, is available on the website of the company at the following link: https://recindia.nic.in/uploads/files/co-cs-q3-fy24%20-result-video-con-call- dt230124.mp4 The copy of presentation given at said investors conference call is attached herewith. यह आपकी जानकारी के लिए है। This is for your kind information. धन्यवाद, भिदीय, (जे. एस. अलिताभ) कायाकारी लनदेशक और किं पनी सलचि REC Limited A Maharatna Company Investor Presentation Performance Highlights for Q3 & 9M FY 2023-24 Funding India’s Ambitions 1 REC Overview Borrowing Profile Table of Operational Contents Performance Financial Highlights Asset Quality 2 REC Journey  2022: Conferred  1969: Journey began  2003: Mandate  2019: As Nodal ‘Maharatna’, highest to develop power broadened to  2010: Conferred IFC Agency, achieved statusfor a PSU. infrastructure in financing all power status by RBI 100% Household Forayed into rural areas segments Electrification Infrastructure sector 1969 2003 2010 2019 2022 1998 2008 2017 2021 2023  2023: Largest Green  2017: First Indian PSU  2008: Conferred Bond issuance of USD to issue USD Green  2021: Appointed as  1998: Registered as Navratnastatus, 750 million by South & Bonds on London Stock Nodal Agency for NBFC with RBI Floated IPO South-East Asian issuer, Exchange RDSS subscribed 27 times first post India’s G20 Presidency 4 4 Key Strengths ‘Maharatna’ Company and a Experienced Management Team strategic player in the Indian with Sector Expertise Power, Infrastructure and LogisticsSector 8 2 NodalAgencyformajorGovt.of India’s power sector Diversified Asset Base with programmes–RDSS,Saubhagya, robust Access to Diversified DDUGJY,RooftopSolar(RTS)etc. 7 FundingSources 3 Highest Domestic Rating of “AAA”; International Ratings of “Baa3”&“BBB-”fromMoody’s& Healthy Asset Quality with Fitch respectively at par with adequate provisiiong coverage Sovereignrating` ratio 6 4 Occupies Strategic Position in theGrowthanddevelopmentof the Power Sector and a major Strong Fundamentals and player In Renewable Energy Profitable Business with Stable segment and creation of India’s Margins leading to Strong GreenEnergyCorridor Profitability 5 5 Awards and Accolades Awarded ‘Plaque’ under ‘Financial Services Sector (Other than Banking and Insurance)’ category at the ICAI Awards for Excellence in Financial Reporting for FY 2022-23 ‘Best PSU' ‘Ranked 53rd' ‘Golden Peacock Award' In the Financial In Fortune For Risk Services India 500 Management category by (FY 22) (FY 23) Dun & Bradstreet ‘Golden Peacock 'Operational Performance India's Top 20 Award' Excellence' For Profitable Awarded by Excellence in Companies by Indian Corporate Money Control Chamber of Governance Commerce (FY 22) 6 Accorded Maharatna Status in FY 2022-23 REC is amongst the Coveted Few Indian PSUs Maharatna- Business advantages  Highest rank for top-performing PSUs in India Maharatna  Total of 13 PSUs accorded this status  2ndhighest rank of top-performing PSUs in India Navratna  Total of 16 PSUs accorded this status Gives greater Allows strategic Accelerating operational & investments by growth and  3rdhighest rank of PSUs in India Miniratna I financial incorporating JVs, supporting  Total of 57 PSUs accorded this status autonomy Subsidiaries and Govt’s vision M&A activities in for power  4thrank of PSUs in India India and abroad. sector. Miniratna II  Total of 11 PSUs accorded this status 7 Forayed into Infra Sector: For Nation’s Accelerated Development REC has diversified its loan portfolio with a mandate of up to 33% loans in the Infrastructure and Logistics sector Health Sector Metro Steel Infra Ports Waterways IT Infra / FiberOptics Airport Road & Highways Oil Refinery 8 Government’s Trusted Arm Consumer Service Ratings of Discoms (Operational) Annual Rooftop Solar Integrated (RTS) Rating of programme Discoms (Financial) NEF RDSS LPS- financial DDUGJY disruptive/ Cost of operation SAUBHAGYA 9 Shareholders Outlook Shareholding Pattern EPS Book Value as at 31.12.2023 (Annualized) Per Share Rs. 50.65 Rs. 246.04 PFC 52.63% Consistent increase in share price from Rs. 115.45 as on Mar 31, 2023 to Rs. 412.85 as on Dec. 29, 2023, increase of 258% FPI/ FII 20.60% 500 412.85 450 400 350 281.30 300 250 Others 166.75 1.33% Insurance 200 115.45 Cos. 150 Corporates MFs Individual/ 4.66% 100 1.29% 8.32% HUF/ NRIs 11.17% FPIs have reposed faith in REC and have consistently held more than 20% since IPO in 2008 10 Shareholders Outlook Top 10 Shareholders as at December 31, 2023 Dividend Payout as a % of Equity Share Capital Consistently high dividend paying company Rank Particulars Shareholding (%) 150% 1 Power Finance Corporation Ltd 52.63 2 HDFC Balanced Advantage Fund 2.81 125% 3 HDFC Life Insurance Company Limited 0.88 114.75% 126.00% 4 Nippon India Quant fund 0.84 100% 95.33% Life Insurance Corporation of India -P& GS 82.50% 5 0.78 fund 82.50% 75% TATA AIG General Insurance Company 6 0.77 Limited 7 DSP Flexi Cap Fund 0.71 50% Vanguard Emerging Markets Stock Index Fund, 2019 2020 2021 2022 2023 8 A series of Vanguard International Equity 0.64 Index Funds 1st and2nd interim dividend paid for FY 24 of Rs. 3 and Rs. 9 Vanguard Total International Stock Index Fund 0.64 3.50 per share respectively, totaling to Rs. 6.50 per share of Rs. 10 each(65%). Max Life Insurance Company Limited - 10 0.57 Dynamic Opportunities Fund  Dividend adjusted for Bonus in the ratio of 1:3 in Aug 2022 TOTAL 61.27  Actual dividend 110.00%, 110.00%, 127.10% and 153.00% pre bonus for the year 2019, 2020, 2021 & 2022 11 Sanctions - Composition (Rs. in Crores) Sector-wise breakup of Sanctions in Q3 FY 24 12M Q3 9 M FY 24 Discipline-wise FY 23 % FY 23 % FY 24 % FY 23 % FY 24 % Generation 31,253 12 2,506 5 26,797 20 27,783 14 63,402 19 Generation Renewables incl Large Hydro 21,279 8 9,498 20 75,125 57 21,203 11 1,25,054 39 20% STL/MTL Transmission 8,464 3 2,768 6 5,261 4 7,598 4 19,090 6 3% Distribution 1,13,587 42 20,854 44 20,040 15 1,03,657 54 68,825 21 I&L -Core Renewables incl 1% Hydro a) Distribution Capex 15,943 6 7,354 15 10,540 7 13,995 7 33,805 10 57% b) LPS & LIS * 57,190 21 - - 1,000 1 54,809 29 14,620 5 c) RBPF ** 40,454 15 13,500 29 5,000 4 34,853 18 11,000 3 Distribution 15% d) Special Loan - - - - 3,500 3 - - 9,400 3 Transmission I&L -Core *** 60,801 23 3,461 7 826 1 3,461 2 36,956 11 4% I&L -E&M **** 26,402 10 7,500 16 - - 23,469 12 3,114 1 Highest ever quarterly Sanctions STL/MTL 6,675 2 1,125 2 4,000 3 5,325 3 9,500 3 during Q3 FY24 Rs. 1,32,049 crores Total Sanctions 2,68,461 100 47,712 100 1,32,049 100 192,496 100 3,25,941 100 *LPS–Latepaymentsurcharge *LIS–Liquidityinfusionscheme **RBPF-RevolvingBillsPaymentFacility ***I&L–Infrastructure&Logistics ****ElectricalandMechanical 13 Disbursements - Composition (Rs. in Crores) Sector-wise breakup of Disbursements in Q2 FY 24 12M Q3 9 M FY 24 Discipline-wise FY 23 % FY 23 % FY 24 % FY 23 % FY 24 % Renewables incl Hydro Transmission Generation 9% Generation 18,754 19 5,072 17 10,675 23 11,114 19 20,875 17 3% 23% Renewables incl Large 11,226 12 1,002 3 4,014 9 8,430 14 9,858 8 Hydro Transmission 3,050 3 582 2 1,681 3 2,339 4 4,649 4 STL/MTL Distribution 50,847 52 17,747 60 19,355 42 29,664 49 65,302 53 13% a) Distribution Capex 8,509 9 1,519 5 1,900 4 5,485 9 6,880 6 I&L -E&M b) LPS & LIS * 16,177 17 6,612 22 4,842 10 9,964 17 22,226 18 5% c) RBPF ** 26,161 26 9,616 33 12,613 28 14,215 23 36,196 29 Distribution 42% d) Special Loan - - - - - - - - - - I&L -Core *** - - - - 2,155 5 - - 6,845 6 I&L -Core 5% I&L -E&M **** 9,308 10 4,774 16 2,440 5 5,831 10 6,311 5 Highest ever quarterly STL/MTL 3,661 4 461 2 6,039 13 2,529 4 8,249 7 Disbursements during Q3 FY24 Total Sanctions 96,846 100 29,638 100 46,358 100 59,907 100 1,22,089 100 Rs. 46,358 crores *LPS–Latepaymentsurcharge *LIS–Liquidityinfusionscheme **RBPF-RevolvingBillsPaymentFacility ***I&L–Infrastructure&Logistics ****ElectricalandMechanical 14 Outstanding Loans – Composition (Rs. in Crores) As at Discipline-wise 31 st December 2023 31 st March 2023 31 st March 2022 State Amount % Amount % Amount % 90% State 4,50,031 90 3,93,225 90 3,50,456 91 Private 47,435 10 41,787 10 34,915 9 Total 4,97,466 100 4,35,012 100 3,85,371 100 Private Generation 1,44,280 29 1,32,517 30 1,26,449 33 10% Renewables incl Large Hydro 33,253 7 27,095 6 19,187 5 STL / MTL, 2% Transmission 48,129 10 48,327 11 51,259 13 I&L -E&M, I&L -Core 8% Distribution 2,13,661 43 1,85,806 43 1,54,851 40 1% a) Distribution Capex 87,131 17 90,287 21 97,506 25 Generation29% b) LPS & LIS * 37,950 8 16,147 4 - - c) RBPF ** 35,484 7 24,194 6 - - Distribution d) Special Loan 53,096 11 55,178 12 57,345 15 43% Renewables incl Large I&L -Core *** 6,845 1 - - - - Hydro I&L -E&M **** 43,728 8 38,248 9 28,659 7 7% Transmission10% STL/MTL 7,570 2 3,019 1 4966 2 *LPS–Latepaymentsurcharge,*LIS–Liquidityinfusionscheme,**RBPF-RevolvingBillsPaymentFacility, ***I&L–Infrastructure&Logistics,****E&M–Electrical&Mechanical Loan book has grown at a healthy rate of 18% YoY 15 Figures in Rs. Crores PAN India J&K Haryana 10,207 5,819 presence - Loan Himachal Pradesh 1,644 Assam Assets 557 Punjab Uttarakhand ArunachalPradesh 6,629 3,030 Sikkim 1 UP 3,379 Lending across 28 States 48,784 Rajasthan Bihar 55,673 13,080 State/ Joint Sector Borrowers Nagaland 54 Manipur Rs. 4,50,031 Crores 353 Gujarat Meghalaya 413 745 MadhyaPradesh WestBengal Mizoram Private Sector Borrowers 10,493 15 3,591 Tripura Maharashtra Jharkhand 38 53,607 7,362 Rs. 47,435 Crores Orissa 2,963 Telangana Chhattisgarh 74,645 4,855 Total Loan Outstanding Karnataka AndhraPradesh 23,145 Kerala 47,043 6,565 Rs. 4,97,466 Crores TamilNadu 16 65,341 Outstanding Loans – Major Borrowers Major State Borrowers (as at December 31, 2023) Amount % of Total S. No. Top Ten Borrowers Outstanding Loan Assets (Rs. in Crores) 1 Tamil Nadu Generation and Distribution Corporation Limited 51,035 10.26 2 Maharashtra State Electricity Distribution Company Limited 24,483 4.92 3 Uttar Pradesh Power Corporation Limited 18,908 3.80 4 KaleshwaramIrrigation Project Corporation Ltd 17,972 3.61 5 Telangana State Power Generation Corporation Limited 17,656 3.55 6 Andhra Pradesh Southern Power Distribution Company Limited 16,841 3.39 7 Telangana State Southern Power Distribution Company Limited 14,525 2.92 8 Maharashtra State Power Generation Company Limited 14,333 2.88 9 JodhpurVidhyutVitranNigam Limited 13,763 2.77 10 Jaipur Vidyut VitranNigam Limited 13,611 2.74 `` Total 2,03,127 40.83  Well-diversified asset portfolio with Top 10 borrowers accounting for ~41% of current loans.  None of the top 10 borrowers account for more than ~ 10% of the total Loan Book No slippage in Top 10 accounts 17 Asset Quality as at December 31, 2023 Improving Asset Quality Provision Coverage Ratio 72% 4.50% 4.03% 71% 70.64% 70.46% 70.41% 3.63% 70% 3.42% 69.28% 69.11% 69.37% 3.50% 3.28% 3.14% 69% 2.78% 68% 67% 2.50% 66% 65% 1.50% 1.24% 1.12% 64% 1.01% 0.97% 0.96% 0.82% 63% 62% 0.50% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 61% Gross Credit-impaired Assets% 60% Net Credit-impaired Assets% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23  No New NPAs during last 8 quarters 19 Loan Portfolio as at December 31, 2023 (Rs. in Crores) Credit ImpairedAssets (Stage –III) Standard Assets (Stage –I & II) Loan Particulars0 Provision coverage Provision coverage Total ECL # O/s O/s ECL O/s ECL ratio (%) ratio (%) @ State Sector - Generation 1,22639 - - - 1,22,639 554 0.45 554 - Renewables incl Large Hydro 10,701 - - - 10,701 49 0.46 49 - Transmission 45,077 - - - 45,077 21 0.05 21 - Distribution 2,13,661 - - - 2,13,661 2,231 1.04 2,231 a) Distribution Capex 87,131 - - - 87,131 689 0.79 689 b) LPS & LIS * 37,950 - - - 37,950 337 0.89 337 c) RBPF ** 35,484 - - - 35,484 420 1.18 420 d) Special Loan 53,096 - - - 53,096 785 1.48 785 - I&F –Core *** 6,845 - - - 6,845 4 0.06 4 - I&F -E&M **** 43,578 - - - 43,578 162 0.37 162 - STL/MTL 7,531 - - - 7,531 25 0.33 25 Total State Sector 4,50,032 - - - 4,50,032 3,046 0.68 3,046 Private Sector - Generation 21,641 13,518 9,466 70.03 8,123 51 0.63 9,517 - Renewables incl Large Hydro 22,552 294 258 87.76 22,258 270 1.21 528 - Transmission 3,052 - - - 3,052 13 0.43 13 - I&F -E&M **** 150 - - - 150 - - - - STL 39 - - - 39 - - - Total Private Sector 47,434 13,812 9,724 70.41 33,622 334 0.99 10,058 Grand Total 4,97,466 13,812 9,724 70.41 4,83,654 3,380 0.70 13,104 *LPS–Latepaymentsurcharge,*LIS–Liquidityinfusionscheme,**RBPF-RevolvingBillsPaymentFacility,***I&L–Infrastructure&Logistics,****E&M–Electrical&Mechanical @ The Company based on the experience has revised methodology of ECL computation to floor of 0.40% and 1.00% for Stage 1 & 2 assets respectively on aggregate basis in place of the floor of 0.40% for all Stage 1 and 2 assets at borrower level # In addition to the above, Reserves available in the form of Statutory Reserve u/s 45-IC of RBI Act and Reserve for Bad & Doubtful debts u/s 36(1)(viia) of the Income Tax Act, 1961 amounting to ₹10,531 crores. 20 Credit Impaired Assets – Resolution Status Rs.12,297 crores in NCLT Under NCLT 13 projects Resolution status 74% provision of Credit Impaired Assets Rs.1,514 crores resolution pursued outside NCLT Outside NCLT 3 projects 50% provision 21 Credit Ratings for Long Term Borrowings Long-term International Ratings JapanCreditRatingAgency,Ltd. Baa3 (Stable)–Key Highlights BBB-(Stable)–Key Highlights BBB+ (Stable)–Key Highlights RECplaysaveryimportantroleintheimplementationofthe  REC Limited (REC) remains strategically important to GovernmentofIndia’s (GOI)powersectorplans.Theratings the Indian power sector and plays a key role in  REC remains an important government- stronglyreflectthecountry’screditworthinessandareinline implementingthecentralgovernmentpolicyinitiatives. related entity (GRE) due to its strategic with the Republic of India’s Long-term Issuer Ratings (FC: role in supporting India's power sector. BBB+/Stable and LC: BBB+/Stable). It is based on REC’s  REC finances all segments of domestic power Hence,Fitchbelievesthegovernmenthas strong capital and personal relationship with GOI, its infrastructure projects, covering transmission, strongincentivetoprovideextraordinary important position as an institution that financially supports distribution and generation facilities throughout the supporttoREC,ifneeded. thedevelopmentofpowerinfrastructureacrossIndia,andits country,withafocusonruralelectrificationprojects. strong integration with GOI, supported by its position as a NodalagencyforpowerpolicyinitiativesinIndia. Long-term Domestic Ratings “AAA” “AAA” “AAA” “AAA” Perpetual Debt Instruments also rated “AAA” by CARE Ratings and CRISIL 23 Outstanding Borrowings (Rs. in Crores) st st 31 December 31 March Particulars Term Loans 2023 2023 from Banks, FIs, NSSF Corporate Bonds 1,75,782 1,56,868 20% Foreign Currency Borrowings 91,627 * 78,440 Corporate Tax Free Bonds FCNR (B) Loans 24,423 15,424 Bonds and 41% Infra Bonds Borrowing Capital Gain Bonds 41,132 37,587 2% Profile Tax Free Bonds 9,418 10,307 Capital Gain Bonds Commercial Papers 2,985 0 9% Commercial papers Loans from Banks, FIs, NSSF, etc. 87,185 75,986 Foreign Currency Borrowings 1% FCNR(B) Loans 21% 6% Infra Bonds 4 4 Grand Total 4,32,556 3,74,616  Accesstomultiplesourcesoffundingwithamixofinternationalanddomestic ~ 98% of total foreign currency exposure has been hedged till maturity sourcestomeetthebusinessgrowth  OneofthefourCompaniesallowedtoraiselow-costCapitalGainsTax * The above is after redemption of USD 700 million bonds (~ 5,800 crores) on ExemptionBonds completion of their tenor of 5 years 24 Funds Raised During the Period (Rs. in Crores) Q3 9M 12M Category FY24 FY23 FY24 FY23 FY23 (A) Long Term Capital Gains Bonds 2,580 2,822 8,037 8,445 12,154 Institutional Bonds/ Subordinate Debt 14,640 11,055 33,072 13,793 25,545 Loans from Banks/FIs/ NSSF 8,200 6,660 19,500 16,050 22,911 Foreign Currency Borrowings 179 3,341 25,092 6,909 10,036 Total (A) 25,599 23,878 85,701 45,197 70,646 (B) Short Term FCNR (B) Loan 9,243 7,218 22,426 13,235 15,088 Commercial Papers 4,635 - 7,735 - - Loans from Banks 100 - 3,600 1,150 1,150 (Tenor more than 6 months) Total (B) 13,978 7,218 33,761 14,385 16,238 Total (A + B) 39,577 31,096 1,19,462 59,582 86,884 25 Key Financial Highlights for 9M FY24 34,571 Total Income stands at Rs. crores ( 19% YoY) 10,003 Net Profit stands at Rs. crores ( 24% YoY) 9,880 Total Comprehensive Income Rs. crores ( 53% YoY) 4.97 Loan book reached to Rs. lakh crores (21% YoY) 0.82% Assets Quality improved with Net Credit impaired Assets at (vs. 1.12% YoY) ₹ 64,787 Net-worth stands at crores (18% YoY) 28.21% Capital Adequacy Ratio at (Tier – I : 25.35% & Tier – II : 2.86%) 27 Standalone Statement of Profit & Loss Rs. in Crores Q3 9M 12 M Particulars FY 24 FY 23 FY 24 FY 23 FY 23 Interest Income on Loan assets 11,812 9,660 33,490 28,456 38,360 Less: Finance Costs* 7,659 6,139 22,069 17,252 23,738 Net Interest Income 4,153 3,521 11,421 11,204 14,622 Other Operating Income 185 197 704 563 802 Net notional gain/ (loss)on fair value changes (16) (162) 339 76 45 Other Income 18 17 38 34 45 Total Income (Net of Finance Cost) 4,340 3,573 12,502 11,877 15,514 Less: Translation/transaction exchange loss/(gain) (24) 208 107 1,144 1,114 Less: Other costs ** 194 100 409 370 546 Less: Impairment on financial instruments 56 (294) (647) 435 115 Profit Before Tax 4,114 3,559 12,633 9,928 13,739 Less: Tax Expense 845 681 2,630 1,874 2,684 Profit After Tax 3,269 2,878 10,003 8,054 11,055 Add: Other Comprehensive Income/(Loss) (720) (129) (123) (1,615) (971) Total Comprehensive Income/(Loss) 2,549 2,749 9,880 6,439 10,084 *Finance Costs includes fees and commission expense **Other Costs include Employee Benefit Expenses, CSR Expenses, Depreciation & amortization expense and Other Expenses 28 Statement of Assets and Liabilities Rs.inCrores Particulars As at 31.12.2023 As at 31.12.2022 As at 31.03.2023 Assets (A) Financial Assets 5,29,899 4,35,235 4,60,591 Cash and bank balances 2,140 1,168 1,987 Derivative financial instruments 11,341 8,481 8,982 Loans (Ind-AS) 4,87,252 3,97,887 4,22,084 Investments 4,398 2,985 3,138 Other financial assets 24,768 24,714 24,400 (B) Non-Financial Assets 4,217 4,895 4,286 Current tax assets (net) 351 597 296 Deferred tax assets (net) 3,100 3,593 3,277 Fixed Assets 639 627 643 Other non-financial assets 127 78 70 Total Assets (A+B) 5,34,116 4,40,130 4,64,877 Liabilities (C)Financial Liabilities 4,68,982 3,85,094 4,06,988 Derivative financial instruments 1,512 922 977 Borrowings (Ind-AS) 4,40,074 3,58,976 3,80,836 Other financial liabilities 27,396 25,196 25,175 (D) Non-Financial Liabilities 347 197 209 (E)Net Worth 64,787 54,839 57,680 Equity Share Capital 2,633 2,633 2,633 Instruments entirely equity in nature 558 558 558 Other equity 61,596 51,648 54,489 Total Equity & Liabilities (C+D+E) 5,34,116 4,40,130 4,64,877 29 Key Ratios Q3 9M 12M Particulars FY 24 FY 23 FY 24 FY 23 FY 23 Yield on Loan Assets (%) 10.13 9.92 9.98 9.90 9.73 Cost of Funds (%) 7.28 7.17 7.16 7.14 7.28 Interest Spread (%) 2.85 2.75 2.82 2.76 2.45 Net Interest Margin (%) 3.61 3.55 3.52 3.55 3.38 Return on Net Worth (%) 20.45 21.26 21.78 20.29 20.35 Interest Coverage Ratio (Times) 1.54 1.58 1.57 1.58 1.58 Debt Equity Ratio (Times) 6.65 6.44 6.65 6.44 6.49 Theyieldonloanshasimprovedin9MFY24vs9MFY23to9.98%from9.90%andcostofborrowingshasremainedalmoststableat7.16%inspiteof geopolitical issues and interest rates having increased substantially during the corresponding period. All other parameters have either improved or have remainedalmoststable,resultinginbetter9MFY24ratios Yield=RatioofinterestincomeoninterestbearingLoanAssettodailyaverageofinterestearningloanassets Costoffunds=Ratiooffinancecosts+loss(gain)onForextranslation/transaction+loss(gain)onFairValuechanges+Fees&CommissionExpensestodailyaverageofborrowings InterestSpread=YieldminusCostofFunds NetInterestMargin=Ratioofnetinterestincome+gain/(loss)onTranslation/transaction+gain(loss)onFairValuechangestodailyaverageofinterestearningloanassets InterestCoverageRatio=RatioofPBITtoFinanceCost+Fee&CommissionExpense DebtEquity=RatioofTotalBorrowings(netofcash&cashequivalents)toNetWorth ReturnonAverageNetworth=RatioofPATtoaverageNetWorth 30