REC records highest ever quarterly profit at Rs 2,190 cr

The Board of Directors of REC Limited approved the audited standalone and consolidated financial results for Q2 & H1 FY21 today.

Operational and Financial Highlights – Q2 FY21 vs Q2 FY20 (Standalone)

Sanctions - Rs. 67,961 crore vs.Rs. 41,300 crore, up 65%

Disbursements - Rs. 28,826 crore vs.Rs. 17,981 crore, up 60%

Total Income – Rs. 8,791crore vs. Rs. 7,601 crore, up 16%

Net Profit – Rs. 2,190 crore vs. Rs. 1,307 crore, up 68%

On the back of healthy operational performance during the quarter, the company has clocked its all-time highest quarterly profit of Rs. 2,190 crore during Q2 FY21, as against Rs. 1,307 crore during Q2 FY20. The company has registered Earnings Per Share (EPS) (annualized) of Rs. 44.36for the quarter ended 30thSeptember 2020 as against Rs. 26.47 per share during the same quarter last year.

The loan book has reflected a growth of 16% while growing from Rs. 3.01lakh crore as on 30thSeptember 2019 to Rs. 3.49 lakh crore on 30thSeptember 2020. The strong financial performance has pushed the book value above Rs. 200, as the Net Worth of the Company as at 30th September 2020 is Rs. 40,259 crore. The Capital Adequacy Ratio of the Company has also improved sequentially to18.35% as on30thSeptember 2020 which will help in sustaining the growth momentum for the Company.

With no incremental slippages and sustained trend of resolutions, the Net Credit-impaired assets have reduced to 2.04% as on 30th September 2020, as against 2.88% as on 30th June 2020. The Provisioning Coverage Ratio of the Company has also improved to 60.94% as on 30th September 2020, as against 52.89% during Q1 FY21. Continuing the tradition of rewarding its shareholders, the Board of Directors of the Company also declared an interim dividend of Rs. 6 per share of Rs. 10 each. The record date for such interim dividend has been fixed at November 17, 2020.

Talking about the results, Sanjeev Kumar Gupta, Chairman and Managing Director, said, “A strong growth in the sanctions has further cushioned our healthy order book. In spite of the challenging times, the Company has been able to sustain healthy financial performance, while also continuing with the progress in the stressed assets’ resolution.”