REC net profit up 37% at Rs 1,468.7 cr for April-June quarter

Last Updated: Sat, Sep 15, 2018 14:51 hrs
High-tension power lines are pictured outside a Tata Power sub station in the suburbs of Mumbai

State-run Rural Electrification Corporation (REC) has posted the results for its April-June quarter. According to filing data, REC said its net profits were up by 37% jump at Rs 1,468.70 crore. This in comparison to the year ago owing to higher revenues and lower impairments.

In a statement, the company said its standalone net profit in the quarter ending on June 30, 2017, was Rs 1,075.96 crore.

The total income of the company was Rs 6,319 crore in the first quarter, up from Rs 5,628 crore year ago.

The Earnings per Share (EPS) during the first quarter of FY2019 has also increased to Rs 7.44, in comparison to EPS of Rs 5.45 during the year-ago quarter, it said.

In spite of the challenging business environment, the loan book of the company has shown am increase of 16% to Rs 2.42 lakh crore as at June 30 2018, as against Rs 2.08 lakh crore as at June 30 2017, it added.

The Net NPA levels have also fallen to 4.27% in April-June 2018 as compared to 5.68% as per IGAAP in the last quarter of 2017-18. Further, there are no indications of credit impairment in the loans to government sector, forming 86% of the loan book, it added.

Commenting on results, Dr. P V Ramesh, Chairman and Managing Director REC said in statement, the company has delivered a steady performance during the current quarter, even while the domestic and global factors have been challenging.

"Our focus continues to be on the renewable segment which is emerging as a major driver for sustainable growth. We also continue to remain optimistic about the resolution of the stressed assets."