REC Q4-12M FY22 Results: Records highest annual profit at 10,046 Cr – EQ Mag Pro
REC has successfully resolved three projects worth *2,550 crores during Q4 FY22. Consequently, the Net Credit-impaired assets have reduced to 1.45% during FY22, with a comfortable Provision Coverage Ratio of 67.40%.
Gurugram: The Board of Directors of REC Limited approved the audited standalone and consolidated financial results for Q4 & 12M FY22.
Operational and Financial Highlights – FY22 vs FY21 (Standalone)
Total Income: 39,230 crores vs. 35,410 crores, up 11%
Net Profit: 10,046 crores vs. 18,362 crores, up 20%
Operational and Financial Highlights-Q4 FY22 vs Q4 FY21 (Standalone)
Total Income: *9,602 crores vs. *9,150 crores, up 5%
Net Profit: 2,288 crores vs. 2,070 crores, up 11%
Owing to the corporation’s sound income, effective cost management, and resultant quarterly profit, the Earnings Per Share for the year ended 31st March 2022 increased to 50.87 against 42.34 per share as of 31st March 2021. Aided by the growth in profits, the Net Worth of the company during FY22 climbed to €50,986 crores, registering an increase of 17% YoY.
Despite sluggish credit offtake across the infrastructure sector as a result of the Covid-19 pandemic, REC has increased its loan book by 2% to 3.85 lakh crore. To improve its stressed loan assets, REC has successfully resolved three projects worth *2,550 crores during Q4 FY22. Consequently, the Net Credit-impaired assets have reduced to 1.45% during FY22, with a comfortable Provision Coverage Ratio of 67.40%.
With a strong order book and Capital Adequacy Ratio of 23.61% as of 31st March 2022, REC has a solid foundation and ample opportunities to support its future growth.
Continuing with the tradition of rewarding its shareholders, in addition to the interim dividends already paid totaling 10.50/- per equity share, the Board of Directors of the Company has declared a final dividend of *4.80/- per equity share for the FY 21-22, subject to the approval of shareholders in the ensuing AGM. This translates to a 153% dividend payout on the face value of *10/ per share.
About REC Limited: REC Limited is an NBFC focusing on Power Sector Financing and Development across India. Established in 1969, REC Limited has completed over fifty years in the area of its operations. 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; for various types of projects including Generation, Transmission, Distribution, and Renewable Energy. REC’s funding illuminates every fourth bulb in India.
Source: psuconnect
