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REC Dec qtr profit jumps 16 pc to Rs 1,275 cr

Press Trust of India  |  New Delhi 

State-run Friday posted 16 per cent jump in standalone net profit at Rs 1,275 crore for December quarter 2018, mainly on account of higher revenues.

The company's net profit in the year-ago period stood at Rs 1,097 crore, as per a BSE filing.

Total revenue of the company rose to Rs 7,257 crore in the latest quarter from Rs 5,637 crore in December quarter 2017.

The firm sanctioned loans worth Rs 28,587 crore in the quarter under review as compared to Rs 38,885 crore a year ago. Loan disbursed stood at Rs 19,727 crore as against Rs 12,892 crore in the year-ago period.

Net profit in April-December period rose 26 per cent to Rs 4,508 crore from Rs 3,580 crore in the same period last fiscal. Total income in the period was higher at Rs 19,131 crore from Rs 16,792 crore a year ago.

The company said its loan book has increased by 20 per cent, growing from Rs 2.24 lakh crore as at December-end 2017 to Rs 2.69 lakh crore as on December 31, 2018.

Earnings per share (EPS) during third quarter has also increased to Rs 6.45, in comparison to EPS of Rs 5.55 in the year-ago three months.

The net worth of the company stands at Rs 35,367 crore as at December-end 2018. The capital adequacy ratio also improved from 16.14 per cent to 16.84 per cent quarter-on-quarter.

The Interest Coverage Ratio has also been at a healthy 1.56 for the period ended December 31, 2018.

Net bad loan percentage improved from 4.28 per cent to 3.96 per cent quarter-on-quarter.

Further, it said there are no indications of credit impairment in the loans to the government sector, forming 88 per cent of the loan book.

"While the financial sector is witnessing challenging times, the company has sustained its strong operational performance during the period ended December 31 2018.

The company stays committed towards the growth of power sector and remains geared towards harnessing the opportunities across the power sector value chain," and MD P V Ramesh said in the statement.

is an company focusing on power sector.

It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 08 2019. 19:55 IST