The Loan Book of the Company has increased by 20%, growing from Rs. 2.24 lakh crore as at 31st December 2017 to Rs. 2.69 lakh crore as at 31st December 2018. This helped the Total Income of the Company increase to Rs. 7,257 crore during the current quarter, as against Rs. 5,637 crore during the quarter ended 31st December 2017. The Company has posted a quarterly profit of Rs. 1,275 crore during Q3 FY19, as compared to Rs. 1,097 crore in Q3 FY18, showing a growth of 16%. The Earnings per Share (EPS) during Q3 FY19 has also increased to Rs. 6.45, in comparison to EPS of Rs. 5.55 during Q3 FY18.
The Board of Directors of REC Limited (Formerly Rural Electrification Corporation Limited) approved the unaudited standalone financial results for Q3 and 9M FY19 today.
Highlights – Q3 FY19 vs Q3 FY18
– Sanctions – Rs. 28,587 crore vs. Rs. 38,885 crore
– Disbursements – Rs. 19,727 crore vs. Rs. 12,892 crore, up 53%
– Total Income – Rs. 7,257 crore vs. Rs. 5,637 crore, up 29%
– Profit before Tax – Rs. 1,830 crore vs Rs. 1,506 crore, up 22%
– Net Profit – Rs. 1,275 crore vs Rs. 1,097 crore, up 16%
Highlights – 9M FY19 vs 9M FY18
– Sanctions – Rs. 96,357 crore vs. Rs. 95,053 crore, up 1%
– Disbursements – Rs. 52,269 crore vs. Rs. 39,427 crore, up 33%
– Total Income – Rs. 19,131 crore vs. Rs. 16,792 crore, up 14%
– Profit before Tax – Rs. 6,466 crore vs Rs. 4,901 crore, up 32%
– Net Profit – Rs. 4,508 crore vs Rs. 3,580 crore, up 26%
The Net Worth of the Company stands at Rs. 35,367 crore as at 31st December 2018. The Capital Adequacy Ratio has also improved sequentially from 16.14% as at 30th September 2018 to 16.84% as at 31st December 2018. The Interest Coverage Ratio, signifying the Company’s ability to service the borrowings through operational profits, has also been at a healthy 1.56 for the period ended 31st December 2018.
Maintaining a healthy asset quality of the loan assets has always been a key focus area for the Company. As a result, Net NPA % has improved sequentially from 4.28% as at 30th September 2018 to 3.96% as at 31st December 2018. The Provision Coverage Ratio against the credit-impaired assets under the Expected Credit Loss (ECL) framework has also increased from 45.92% as at 30th Sept. 2018 to 47.68% as at 31st December 2018. Further, there are no indications of credit impairment in the loans to the Govt. sector, forming 88% of the loan book.
Talking about the results, Dr. P.V. Ramesh, Chairman and Managing Director, said, “While the financial sector is witnessing challenging times, the Company has sustained its strong operational performance during the period ended 31st December 2018. The Company stays committed towards the growth of power sector and remains geared towards harnessing the opportunities across the power sector value chain. A healthy capital adequacy ratio of 16.84% also provides us the necessary cushion to support the business growth. With the revival of the investment cycle in the sector, we continue to stay optimistic on the power sector outlook.”
About the Company:
REC Limited (formerly Rural Electrification Corporation Limited) is a Navratna NBFC and Infrastructure Finance Company (IFC) focusing on Power Sector Financing and Development across India. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities. Its business activities involve financing projects in the complete power sector value chain; different type of projects includes Generation, Transmission, Distribution Projects and Renewable Energy projects.
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