REC declares highest ever quarterly profit; Q2 net up 25% to Rs 1,764 cr
New Delhi: Amid the sceptical development over government's proposal on REC, the Rural Electrification Corporation declared a steady 25 per cent growth of the net profit in Q2 FY19 on Wednesday.
"The Net Profit for the company has increased by 25 per cent from Rs. 1,408 crore in Q2 FY18 to Rs. 1,764 crore in Q2 FY19. This has been the highest ever quarterly profit declared by the company," it claimed.
The Earnings per Share (EPS) during this quarter has also increased to Rs 8.93 crores, in comparison to Rs. 7.13 crores during Q2 FY18.
The NBFC further claims that it has the capital adequacy of Rs 32,755 crores till the end of September this year- at a comfortable level of 16.14 per cent to support the future growth of REC. Even there is no credit impairment in the loans to the government sector by forming 87 per cent of the loan book. In three months it has sequentially improved the Gross NPA from 8.12 per cent to 7.92 per cent.
Adding more, "The domestic debt instruments of REC continue to enjoy "AAA" rating- the highest rating assigned by CRISIL, CARE, India Ratings and Research and ICRA-Credit Rating Agencies. The Company also enjoys international credit rating of "Baa3" and "BBB-" from International Credit Rating Agencies Moody's and FITCH respectively," the company emphasised.
On that day REC board members met to consider the financial results for the quarter. The analysts have closely tracked the financial performance of the company, which had reported a strong number in the previous quarter.
The Navratna NBFC provides financial assistance to state electricity boards, state governments, central or state power utilities, independent power producers, rural electric cooperatives and private sector utilities.
For the first quarter of the current fiscal, REC had reported a profit of Rs 1,468.70 crore and revenues of Rs 5,738.59 crore.