REC clocks Net Profit of ₹2,728 crores during Q2FY23 – EQ Mag Pro
The Board of Directors of REC Limited – A Maharatna CPSE under the Ministry of Power, approved the unaudited standalone and consolidated financial results for Q2FY23.
Operational and Financial Highlights – Q2FY23 vs Q1FY23 (Standalone)
Total Income: ₹9,949 crores vs. ₹9,469 crores, up 5%
Net Profit: ₹2,728 crores vs. ₹2,447 crores, up 11%
Owing to the stable income, effective cost management and resultant quarterly profit, the Earnings Per Share for the quarter ended 30th September 2022 stands at ₹41.44 per share as against ₹37.16 per share as on 30th June 2022. Aided by its strong performance, the Net Worth of the Company has swelled to ₹53,457 crores as on 30th September 2022, an increase of 2% Q-o-Q.
The Loan Book has risen by 2% to ₹3.94 lakh crore as at 30th September 2022. The increase in Loan Book coupled with sound asset resolutions has enabled a reduction in the Net Credit-impaired assets to 1.24% with Provision Coverage Ratio of 69.28% as on September 30, 2022. The Capital Adequacy Ratio stands at a comfortable 25.15% as on 30th September 2022, implying ample opportunities to support business growth. Continuing the tradition of rewarding its shareholders, the Board of Directors of the Company has declared first interim dividend of ₹5/- per equity share and 9th November 2022 has been fixed as the Record Date for payment of Interim Dividend.
Given the consistent operational and business excellence that REC achieves, the Company was recently conferred the status of ‘Maharatna’ – the highest recognition for a Central Public Sector Enterprise (CPSE). The grant of ‘Maharatna’ status to REC imparts enhanced powers to the company’s Board while taking financial decisions.
Of late, the organization has expanded its business offerings to also fund infrastructure development projects such as metros. In line with the same, REC has signed a loan agreement of ₹14,434 crores with Mumbai Metropolitan Region Development Authority (MMRDA) for nine metro projects being developed in the Mumbai Metropolitan Region (MMR).
