REC records its highest ever quarterly profit at rs. 1,839 crores
REC DECLARES ITS QUARTERLY FINANCIAL RESULTS FOR Q1 FY21
The Board of Directors of REC Limited (formerly Rural Electrification Corporation Limited) approved the unaudited standalone and consolidated financial results for Q1 FY21 today.
Operational and Financial Highlights – Q1 FY21 vs Q1 FY20 (Standalone)
Sanctions - Rs. 41,959 crore vs. Rs. 24,288 crore, up 73%
Total Income – Rs. 8,422 crore vs. Rs. 6,799 crore, up 24%
Net Profit – Rs. 1,839 crore vs. Rs. 1,501 crore, up 22%
During the current quarter, the company has clocked its all-time highest quarterly profit of Rs. 1,839 crore during Q1 FY21, as against Rs. 1,501 crore during Q1 FY20. The company has registered Earnings Per Share (EPS) (annualized) of Rs. 37.24 for the quarter ended 30th June 2020 as against Rs. 30.40 per share during the same quarter last year.
The loan book has reflected a growth of 14% while growing from Rs. 2.91 lakh crore as on 30th June 2019 to Rs. 3.30 lakh crore on 30th June 2020. The Net Worth of the Company stands at Rs. 37,384 crore as on 30th June 2020, with a book value per share of Rs. 189. Aided by the healthy profits, the Capital Adequacy Ratio of the Company has also improved sequentially to 16.91% as on 30th June 2020.
The provision Coverage Ratio against Credit-impaired assets has improved from 49.64% on 31st March 2020 to 52.89% as on June 30, 2020. With no incremental slippages and upgradation of one major transmission account, the Net Credit-impaired assets have reduced to 2.88% as on 30th June 2020, as against 3.32% on 31st March 2020. Also, the loans to the government and public sector, which form nearly 89% of the loan book, have continued to stay healthy without reflecting any signs of stress.
Talking about the results, Mr. Sanjeev Kumar Gupta, Chairman and Managing Director of REC Limited said, “It’s a matter of immense pride for us that the company continues its operational and business excellence even amidst the challenging times. We have been witnessing steady progress in the resolution of stressed assets and continue to stay optimistic going forward as well.”