REC Announces its Financial Results for Q2 FY22 & H1 FY22

The Board of Directors of REC Limited approved the unaudited standalone and consolidated financial results for Q2 FY22 today. Financial Highlights: Q2 FY22 vs Q2 FY21 (Standalone)

• Total Income- Rs. 10,079 crores vs. Rs. 8,791 crores, up 15%

• Net Profit- Rs. 2,739 crores vs. Rs. 2,190 crores, up 25%

Owing to the record income, effective cost management and resultant quarterly profit, the annualized Earnings Per Share for the quarter ended 30th September 2021 increased to Rs. 55.47 as against Rs. 44.36 per share during the same quarter last year. Aided by growth in profits, the Net Worth has grown to Rs. 47,767 crore as of 30th September 2021, an increase of 19% YoY.

The loan book has maintained its growth trajectory and has increased by 11% to Rs. 3.87 lakh crore as of 30 September 2021. The increase in Loan Book coupled with asset resolutions and improved provision coverage ratio has enabled in reducing the Net Credit-impaired assets to 1.52% as of 30th September 2021. The Provision Coverage Ratio against Credit impaired assets stands at 67.63% as of September 30, 2021.

The Capital Adequacy Ratio of the Company stands at a comfortable 21.15% as of 30th September 2021, implying ample opportunity to support future growth. 

Continuing with the tradition to reward its shareholders, in addition to the first interim dividend Rs. 2.00 per equity shares, the Board of Directors of the Company has declared a second interim dividend of Rs. 2.50 per equity share and 12th November 2021 has been fixed as Record Date for Payment of Interim Dividend. 

About REC Limited:

REC Limited is a Navratna 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; different type of projects includes Generation, Transmission, Distribution Projects, and Renewable Energy projects.