REC records its highest ever quarterly profit at Rs. 2,263 Cr
New Delhi: The Board of Directors of REC Limited approved the unaudited standalone and consolidated financial results for Q3 & 9M FY21.
Operational and Financial Highlights – Q3 FY21 vs Q3 FY20 (Standalone)
Total Income – Rs. 9,047 crore vs. Rs. 7,653 crore, up 18%
Net Profit – Rs. 2,263 crore vs. Rs. 1,642 crore, up 38%
With healthy operational performance during the quarter, the company has clocked its all-time highest quarterly profit of Rs. 2,263 crore during Q3 FY21, as against Rs. 1,642 crore during Q3 FY20. This translates to Earnings Per Share (EPS) (non-annualized) of Rs. 11.46 for the quarter ended 31 December 2020 as against Rs. 8.32 per share during the same quarter last year.
The loan book has grown from Rs. 3.07 lakh crores as on 31 December 2019 to Rs. 3.57 lakh crores as on 31 December 2020. Aided by the profits, the Net Worth of the Company as at 31 December 2020 has reached Rs. 41,749 crore with book value at Rs. 211 per share. The Capital Adequacy Ratio of the Company has also improved sequentially to 19.27% as on 31 December 2020 which will aid the future growth for the Company.
With no incremental slippages and sustained trend of resolutions, the Net Credit-impaired assets have reduced to 1.95% as on 31 December 2020 with the Provisioning Coverage Ratio inching higher to 61.87%.
Talking about the results, Mr. Sanjay Malhotra, Chairman and Managing Director, said, “The Company has been resilient during the challenging times, consistently posting all-time high profits for three quarters consecutively. With rebound in the economic activity leading to rebound in the power consumption levels, we continue to remain optimistic over future outlook of the power sector. The reforms-based result-linked distribution sector scheme announced in the Union Budget with expected outlay of more than Rs. 3 lakh crores over 5 years is also expected to be positive for the entire power sector value chain.”