Q2FY21: REC clocks highest-ever quarterly profit of Rs 2,190 crore

• REC has clocked its all-time highest quarterly profit in the second quarter of the current financial year

• The Navratna Power PSU  announced a net profit of Rs 2,190 crore during against Rs 1,307 crore during CPLY

New Delhi: On the back of healthy operational performance during the quarter, REC Limited, a Navratna PSU under the Ministry of Power, has clocked its all-time highest quarterly profit in the second quarter of the current financial year (Q2 FY2020-21). During the period the company announced a net profit of Rs 2,190 crore during against Rs 1,307 crore during the same period of the previous financial year (Q2 FY2019-20). The company has registered Earnings Per Share (EPS) (annualized) of Rs 44.36 for the quarter ended on September 30 as against Rs 26.47 per share during the same quarter last year.

"The loan book has reflected a growth of 16 percent while growing from Rs 3.01 lakh crore as on September 30, 2019, to Rs 3.49 lakh crore on September 30, 2020. The strong financial performance has pushed the book value above Rs 200, as the net worth of the company as at September 30, 2020, is Rs 40,259 crore. The Capital Adequacy Ratio of the company has also improved sequentially to 18.35 percent as on September 30, 2020, which will help in sustaining the growth momentum for the company," REC said in an official statement on Saturday.

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Further, with no incremental slippages and a sustained trend of resolutions, the Net Credit-impaired assets have reduced to 2.04 percent as on September 30, 2020, as against 2.88 percent as on June 30, 2020. The provisioning coverage ratio of the company has also improved to 60.94 percent as against 52.89 percent during Q1 FY2020-21. Continuing the tradition of rewarding its shareholders, the Board of Directors of the company also declared an interim dividend of Rs 6 per share of Rs 10 each. The record date for interim dividend has been fixed on November 17.

Talking about the results, REC Limited's Chairman & Managing Director (CMD) Sanjeev Kumar Gupta said, "A strong growth in the sanctions has further cushioned our healthy order book. In spite of the challenging times, the company has been able to sustain healthy financial performance, while also continuing with the progress in the stressed assets' resolution." 

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