Companies

REC Q2 net down 26% to ₹ 1,306.76 crore

Our Bureau New Delhi | Updated on November 05, 2019

REC Limited has reported a ₹ 1,306.76 crore net profit for the second quarter of financial year 2019-2020. This 25.95 per cent lower than the ₹ 1,764.81 crore net profit reported in the corresponding period of the previous financial year.

Total income rose to ₹ 7,425.27 crore during the quarter under review from ₹ 6,253.42 crore in the comparable period of the financial year 2018-2019. The lower profit is on account of higher expenses.

Total expenses rose to ₹ 5,585.49 crore in the quarter ending September 30, 2019 from ₹ 3,727.49 crore in the same quarter ending last fiscal.

Commenting on the results, Chairman and Managing Director at REC Limited, Ajeet Kumar Agarwal said, “The sentiment in the power sector has been improving. We saw a resolution sail through in respect of one of the stressed assets during the current quarter and we are hopeful of resolution of some more stressed assets in the coming quarters.”

The interest income on loan assets has increased by 22 per cent from ₹ 5,999 crore in the second quarter of financial year 2018-2019 to ₹ 7,347 crore in the second quarter. The loan book has continued to grow on sequential basis and has crossed ₹ 3 lakh crore during the second quarter, a company statement said.

With no incremental slippages, the asset quality has been improving steadily and the net NPA levels improved from 3.72 per cent as at June 30, 2019 to 3.47 per cent as at September 30, 2019. Further, the loans to government and public sector, forming 88 per cent of the loan book, have not shown any indications of credit impairment, the statement added.

Published on November 05, 2019

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