(THE NEWSMAN OF INDIA.COM)
New Delhi, 4th February 2020: The Board of Directors of REC Limited (formerly Rural Electrification Corporation Limited) approved the unaudited standalone and consolidated financial results for Q3 and 9M FY20 today.

Operational and Financial Highlights – Q3 FY20 vs Q3 FY19 (Standalone) Sanctions – Rs. 30,610 crore vs. Rs. 28,587 crore, up 7% Disbursements – Rs. 19,856 crore vs. Rs. 19,727 crore, up 1% Total Income – Rs. 7,653 crore vs. Rs. 5,512 crore, up 39%
Net Profit – Rs. 1,642 crore vs Rs. 1,275 crore, up 29%

Financial Highlights – Q3 FY20 vs Q3 FY19 (Consolidated) Total Income – Rs. 7,717 crore vs. Rs. 5,538 crore, up 39%
Net Profit – Rs. 1,667 crore vs Rs. 1,284 crore, up 30%

During the current quarter, the Company has registered a growth of 29% with a Net Profit of Rs. 1,642 crore during Q3 FY20, as against Rs. 1,275 crore during Q3 FY19. For the quarter ended 31st December 2019, the Company has registered Earnings Per Share (EPS) of Rs. 8.32 as against Rs. 6.45 per share during the same quarter last year.

Keeping in view the strong financial performance of the Company, the Board of Directors has also declared an interim dividend of Rs. 11/- per share, with the record date being 12th February 2020 to ascertain the eligibility of the shareholders to receive the interim dividend.

The loan book has reflected a growth of 14% while growing from Rs. 2.69 lakh crores as at 31st December 2018 to Rs. 3.07 lakh crores as at 31st December 2019. The Net Worth of the Company stands at Rs. 38,515 crores as on 31st December 2019, with a book value per share of Rs. 195. With a healthy order book, the Capital Adequacy Ratio of the Company has also been healthy to support the future growth at 18.36% as of 31st December 2019 as against 16.84% as of 31st December 2018.

The provisioning coverage ratio against the credit-impaired assets under the Expected Credit Loss (ECL) framework has improved from 47.66% on 31st March 2019 to 50.68% as of 31st December 2019. During the current quarter, an amount of Rs. 78 crores has been provided towards ECL. With no incremental slippages and another major stressed asset getting resolved during the quarter, the asset quality has further improved, with Net NPAs reducing from 3.47% as of 30th September 2019 to 3.16% as of 31st December 2019. Also, the loans to Govt. and public sector, forming 88% of the loan book, have continued to stay healthy without reflecting any signs of stress.

In another moment of glory for the Company, REC has been awarded the Plaque award for Excellence in Financial Reporting for the year 2018-19 under the ‘Public Sector Entities’ category by the Institute of Chartered Accountants of India (ICAI) in an award presentation ceremony held in Jaipur in January 2020. With this award, REC has become the first and presently, the only Public Sector Entity to receive such an award for its Ind-AS compliant financial statements.

Talking about the results, Ajeet Kumar Agarwal, Chairman and Managing Director, said, “Amidst the challenging times for the financial sector, the Company has been able to deliver yet another quarter of strong operational and financial performance. With one large borrower account getting settled during the quarter apart from two accounts getting upgraded on regularization of the dues, we continue to be optimistic about further resolutions of the stressed assets in the coming quarters.”

About the Company:
REC Limited (formerly Rural Electrification Corporation Limited) is a Navratna NBFC and Infrastructure Finance Company (IFC) focusing on Power Sector Financing and Development across India. 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.