The Board of Directors of REC Limited (formerly Rural Electrification Corporation Limited) approved the unaudited standalone and consolidated financial results for Q1 FY20 .
Operational and Financial Highlights – Q1 FY20 vs Q1 FY19 (Standalone)
- Sanctions – Rs. 24,288 crore vs. Rs. 18,767 crore, up 29%
- Disbursements – Rs. 15,625 crore vs. Rs. 8,316 crore, up 88%
- Total Income – Rs. 6,989 crore vs. Rs. 6,319 crore, up 11%
- Net Profit – Rs. 1,501 crore vs Rs. 1,468 crore, up 2%
Financial Highlights – Q1 FY20 vs Q1 FY19 (Consolidated)
- Total Income – Rs. 7,010 crore vs. Rs. 6,351 crore, up 10%
- Net Profit – Rs. 1,509 crore vs Rs. 1,472 crore, up 3%
During the current quarter ended 30th June 2019, the Company has registered a Net Profit of Rs. 1,501 crore, as against Rs. 1,468 crore during the quarter ended 30th June 2018. The interest income has increased by 22% from Rs. 5,733 crore in Q1 FY19 to Rs. 6,972 crore in Q1 FY20 on the back of increased loan book of the Company, which has grown by 20% from Rs. 2.42 lakh crore as at 30th June 2018 to Rs. 2.91 lakh crore as at 30th June 2019. The interest coverage ratio of the Company has been at 1.46 with an Earnings per Share (EPS) of Rs. 7.60 during Q1 FY20.
The Net Worth of the Company stands at Rs. 35,913 crores as on 30th June 2019, with a book value per share of Rs. 182. While the operational parameters, i.e. Sanctions and Disbursements have reflected a healthy uptrend during the quarter, the Capital Adequacy Ratio continues to stay healthy at 17.90% as at 30th June 2019 to support the future growth of the Company.
The asset quality has also improved sequentially, as the Net NPA levels decreased from 3.79% as at 31st March 2019 to 3.72% as at 30th June 2019. The Provision Coverage Ratio against the credit-impaired assets under the Expected Credit Loss (ECL) framework has also improved to 48.22% as at 30th June 2019. Further, the loans to Govt. and public sector, forming 88% of the loan book, has not shown any indications of credit impairment.
Talking about the results, Ajeet Kumar Agarwal, Chairman and Managing Director, said, “We sense a revival of the investor sentiment, as is visible from the healthy growth in our sanctions and disbursements. On the back of a strong financial profile, we have recently raised five-year Reg-S USD Bonds for USD 650 Million in July 2019 with a robust investor demand, helping us to close our largest Reg S bonds issue with the tightest coupon ever of 3.375% on our five-year bonds. The Company has been the torchbearer for the power sector for the last five decades and we continue to be optimistic about the sector in the times to come.”
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.