Friday, June 24, 2022

REC records its highest annual profit at Rs 10,046 crores

The Board of Directors of REC Limited approved the audited standalone and consolidated financial results for the 4th quarter and financial year of FY'2021-22

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New Delhi: The Board of Directors of REC Limited approved the audited standalone and consolidated financial results for the 4th quarter and financial year of FY’2021-22.

Operational and Financial Highlights – FY22 vs FY21 (Standalone)

During the period the total income of the company has gone up by 11 percent to Rs 39,230 crores from Rs 35,410 crores in CLPY. The net profit of the company has also increased by 20 percent to Rs 10,046 crores against Rs 8,362 crores in CLPY.

Operational and Financial Highlights – Q4 FY22 vs Q4 FY21 (Standalone)

During the fourth quarter (Q4 FY22) the total income of REC Limited has increased by 5 percent to Rs 9,602 crores from Rs 9,150 crore in the corresponding period of the last year (CLPY). While the net profit of the company has increased by 11 percent to Rs 2,288 crores from Rs 2,070 crore in CLPY.

Owing to the corporation’s sound income, effective cost management and resultant quarterly profit, the Earnings Per Share for the year ended March 31 increased to Rs 50.87 as against Rs 42.34 per share as at March 13, 2021. Aided by the growth in profits, the Net Worth of the company during FY’22 climbed to Rs 50,986 crores, registering an increase of 17 percent YoY.

In spite of sluggish credit offtake across the infrastructure sector as a result of the Covid-19 pandemic, REC has increased its loan book by 2 percent to Rs 3.85 lakh crore. With an objective of improving its stressed loan assets, REC has successfully resolved three projects worth Rs 2,550 crores during Q4 FY22. Consequently, the net credit-impaired assets have reduced to 1.45 percent during FY22, with a comfortable provision coverage ratio of 67.40 percent.

With strong order book and Capital Adequacy Ratio of 23.61 percent as at March 31, 2022, REC has a solid foundation and an ample number of opportunities to support its future growth.

Continuing with the tradition of rewarding its shareholders, in addition to the interim dividends already paid totalling to Rs 10.50/- per equity shares, the Board of Directors of the Company have declared a final dividend of Rs 4.80/- per equity share for the FY 21-22, subject to approval of shareholders in the ensuing AGM. This translates to a 153% dividend payout on face value of ₹10/- per share.

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