REC Q1 profit rises marginally

Our Bureau New Delhi | Updated on August 06, 2019

REC Ltd has reported ₹1,501-crore net profit during the first quarter of the current fiscal.

This bottomline performance was marginally higher over the net profit of ₹1,468 crore reported in the corresponding quarter of the preceding financial year.

Total income for the quarter under review was at ₹6,989.19 crore (₹6,319.01 crore). A company statement said, “The interest income has increased by 22 per cent from ₹5,733 crore in the first quarter of 2018-19 to ₹6,972 crore in the quarter under review on the back of increased loan book.”

The loan book has grown by 20 per cent from ₹2.42 lakh crore as on June 30, 2018 to ₹2.91 lakh crore on June 30, 2019.

The interest coverage ratio of the company was at 1.46, a company statement said.

The asset quality has also improved sequentially, as the net NPA levels decreased from 3.79 per cent as of March 31, 2019 to 3.72 per cent as of June 30, 2019.

The loans to government and public sector, forming 88 per cent of the loan book, has not shown any indications of credit impairment, the company said.

The company’s shares closed 3.63 per cent higher at ₹138.45 a scrip on the BSE on Tuesday.

Published on August 06, 2019

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