REC net profit up 8% in Q1; plans to raise up to ₹75,000 cr

Our Bureau | | Updated on: Aug 04, 2022

CHENNAI, 14/03/2017 : For Tamil Nadu Desk : An electricity pylon tower carries high voltage power lines, the picture taken at Redhills in Chennai. Photo: B. Jothi Ramalingam | Photo Credit: JOTHI RAMALINGAM B

Consolidated total income was almost flat on an annual basis at ₹9,506 crore

State-run REC reported an 8 per cent Y-o-Y growth in its consolidated net profit at ₹2,454.16 crore in April-June quarter of the current financial year. On a sequential basis, net profit was higher by 6.6 per cent.

The NBFC’s consolidated total income was almost flat on an annual basis at ₹9,506.06 crore in Q1 FY23 from ₹9,555.45 crore. On a quarter-on-quarter basis, the company’s total income fell 1.5 per cent.

The Board of Directors approved a proposal to raise funds through issue of unsecured/ secured non-convertible bonds/ debentures through private placement, up to an amount of ₹75,000 crore, in one or more tranches, subject to approval of shareholders in this regard in the ensuing Annual General Meeting (AGM), the company said in a stock exchange filing.

“With revival of the economy and impetus of the government, REC has been able to sanction new projects worth ₹59,895 crore in Q1 FY23. With a healthy disbursement of ₹12,442 crore during Q1FY23, REC’s loan book has increased to ₹3.88 lakh crore as of June 30, 2022,” REC said in a statement.

With sound asset resolution and strong project monitoring, the net credit-impaired assets have reduced to 1.41 per cent as on June 30, 2022, with the provision coverage ratio of 68.08 per cent, it added.

With a strong order book and capital adequacy of 24.78 per cent as at June 30, 2022, the company has sufficient cushion and ample opportunities to support the future growth, it said.

Published on August 04, 2022
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