REC records its highest ever quarterly profit at Rs 18.39 billion

The board of directors of REC Limited (formerly Rural Electrification Corporation Limited) have approved the unaudited standalone and consolidated financial results for Q1 FY21. During the current quarter, the company has clocked its all-time highest quarterly profit of Rs 18.39 billion during Q1 FY21, as against Rs 15.01 billion during Q1 FY20. The company has registered earnings per share (EPS) (annualised) 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 reflected a growth of 14 per cent while growing from Rs 2910 billion as on 30th June 2019 to Rs. 3,300 billion on 30th June 2020. The net worth of the company stands at Rs 373.84 billion 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 provisionalcoverage ratio against credit-impaired assets has improved from 49.64 per cent on 31st March 2020 to 52.89 per cent 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 per cent as on 30th June 2020, as against 3.32 per cent on 31st March 2020. Also, the loans to the government and public sector, which form nearly 89 per cent of the loan book, have continued to stay healthy without reflecting any signs of stress.  Talking about the results, 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.”

GET ACCESS TO OUR ARTICLES

Enter your email address