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Q1 2021-22: REC records 22.16% rise in net profit, declares interim dividend of Rs 2 per share

After recording a robust 22.16 percent rise in net profit in Q1 of FY 2021-22 year-on-year, REC Ltd has declared an interim dividend of Rs 2 per equity share
Q1 2021-22: REC records 22.16% rise in net profit, declares interim dividend of Rs 2 per share
Q1 2021-22: REC records 22.16% rise in net profit, declares interim dividend of Rs 2 per share
  • REC posted a net profit of Rs 2,246.6 crore in Q1 of FY 2021-22, up from Rs 1,839.01 crore recorded in the corresponding quarter of the previous fiscal
  • At a meeting held on Friday, REC’s Board of Directors also approved a final dividend of Rs 1.71 per equity share for FY 2020-21

New Delhi: After recording a robust 22.16 percent rise in net profit in Q1 of FY 2021-22 year-on-year, state-run REC Ltd has declared an interim dividend of Rs 2 per equity share for the current financial year. REC posted a net profit of Rs 2,246.6 crore in Q1 of FY 2021-22, up from Rs 1,839.01 crore recorded in the corresponding quarter of the previous fiscal. In terms of quarter-on-quarter too, the net profit has increased by nearly 9 percent. The profit after tax for the March quarter of the previous fiscal was Rs 2,069.63 crore.

REC’s total income for the quarter stood at Rs 9,592.11 crore, up from Rs 8,110.41 crore recorded in the corresponding quarter of the previous fiscal year. 

REC declares final dividend of Rs 1.71 per equity share for FY 2020-21

At a meeting held on Friday, REC’s Board of Directors also approved a final dividend of Rs 1.71 per equity share for FY 2020-21. REC’s loan book has grown by 15 percent from Rs 3.31 lakh crore as on June 30, 2020 to Rs 3.79 lakh crore on June 30, 2021. Along with an increase in the loan book, the company has been able to maintain the trend of asset resolutions. The Net Credit-impaired assets have reduced to 1.61 percent as on June 30, 2021, as against 2.88 percent as on June 30, 2020. The Provision Coverage Ratio against Credit impaired assets has also improved from 52.89 percent on June 30, 2020 to 66.48 percent as on June 30, 2021.

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The Capital Adequacy Ratio of REC stands at a comfortable 20.21 percent as on June 30, 2021, implying ample opportunity to support future growth, said REC.

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