REC clocks net profit of `2,728 cr in Q2 FY23
Gurugram: The Board of Directors of REC Limited – A Maharatna CPSE under the Ministry of Power, declared financial results for Q2 FY23.
Company's total income rose to Rs 9,949 crore in Q2 FY23 against Rs 9,469 crore in Q1 FY23, an increase of 5 per cent.
The firm's net profit jumped to Rs 2,728 crore in Q2 FY23, an increase of 11 per cent against Rs 2,447 crore in Q1 FY23.
Owing to the stable income, effective cost management and resultant quarterly profit, the Earnings Per Share for the quarter ended September 30, 2022 stands at Rs 41.44 per share as against Rs 37.16 per share as on June 30, 2022. Aided by its strong performance, the Net Worth of the Company has swelled to Rs 53,457 crore as on September 30, 2022, an increase of 2 per cent Q-o-Q.
The Loan Book has risen by 2 per cent to Rs 3.94 lakh crore as at September 30, 2022. The increase in Loan Book coupled with sound asset resolutions has enabled a reduction in the Net Credit-impaired assets to 1.24 per cent with Provision Coverage Ratio of 69.28 per cent as on September 30, 2022. The Capital Adequacy Ratio stands at a comfortable 25.15 per cent as on 30th September 2022, implying ample opportunities to support business growth. Continuing the tradition of rewarding its shareholders, the Board of Directors of the Company has declared first interim dividend of Rs 5/- per equity share and 9th November 2022 has been fixed as the Record Date for payment of Interim Dividend.
Given the consistent operational and business excellence that REC achieves, the Company was recently conferred the status of 'Maharatna' – the highest recognition for a Central Public Sector Enterprise (CPSE). The grant of 'Maharatna' status to REC imparts enhanced powers to the company's Board while taking financial decisions.
Of late, the organization has expanded its business offerings to also fund infrastructure development projects such as metros. In line with the same, REC has signed a loan agreement of Rs 14,434 crores with Mumbai Metropolitan Region Development Authority (MMRDA) for nine metro projects being developed in the Mumbai Metropolitan
Region (MMR).
