REC Limited Posts Annual Profit of ₹100 Billion, its Highest-Ever
The company disbursed ₹28.24 billion to renewable energy companies in FY22
REC Limited, a public infrastructure finance company, reported a total income of ₹392.30 billion (~$5.05 billion) for the financial year (FY) 2022, an 11% increase compared to ₹354.10 billion (~$4.56 billion) in FY 2021.
The company’s net profit in FY22 recorded a 20% YoY growth to ₹100.46 billion (~$1.3 billion) from ₹83.62 billion (~$1.08 billion) in FY21.
REC’s net worth during the financial year jumped to ₹509.86 billion (~$6.56 billion), registering a 17% year-over-year (YoY) growth from ₹434.26 billion (~$5.59 billion), majorly driven by the profits.
The company’s loan book increased to ₹3.85 trillion (~$49.52 billion), a 2% YoY growth. It approved total loans of ₹544.21 billion (~$7 billion), out of which ₹147.34 billion (~$1.89 billion) was for renewable energy companies, a 19% YoY decrease compared to ₹182.12 billion (~$2.34 billion) in the previous financial year.
Transmission and distribution companies accounted for ₹221.35 billion (~$2.85 billion) of the approved amounts, and generation companies ₹160.81 billion (~$2.07 billion), while the approved short-term loans were at ₹14.71 billion (~$189.21 million).
The company disbursed a total of ₹641.50 billion (~$8.25 billion) during the financial year. Renewable energy companies received loan disbursements amounting to ₹28.24 billion (~$363.42 million), a 13% YoY decrease compared to ₹32.65 billion (~$420.18 million) last year.
Transmission and distribution companies had the largest share of the disbursements with ₹373.41 billion (~$4.81 billion), followed by generation companies with ₹199.07 billion (~$2.56 billion) and short-term loans with ₹40.78 billion (~$524.71 million).
The company’s top ten borrowers accounted for approximately 43% of the current loans during FY22. The top three borrowers were the Tamil Nadu Generation and Distribution Corporation with a total outstanding of ₹370.64 billion (~$4.77 billion), followed by Uttar Pradesh Corporation at ₹205.61 billion (~$2.65 billion) and Maharashtra State Electricity Distribution Company at ₹188.27 billion (~$2.42 billion).
Fourth Quarter (Q4) FY 2022
REC reported a total income of ₹96.02 billion (~$1.24 billion) in the fourth quarter (Q4) of FY 22, a 5% YoY increase from ₹91.50 billion (~$1.18 billion) in Q4 FY21.
Its net profit was up by 11% from ₹20.70 billion (~$266.1 million) in Q4 FY 21 to ₹22.88 billion (~$294.09 million) in Q4 FY22.
To improve its stressed loan assets, the company resolved three projects worth ₹25.50 billion (~$327.76 million) during Q4 FY22.
The company, during the quarter, approved a total of ₹108.24 billion (~$1.39 billion) of loans, out of which ₹41.88 billion (~$538.16 million) were for renewable energy companies, ₹28.69 billion (~$368.67 million) for transmission and distribution companies, ₹22.96 billion (~$295.06 million) for generation companies and ₹14.71 billion (~$189.21) in short term loans.
REC disbursed a total of ₹154.86 billion (~$1.99 billion) in loans during the quarter, out of which the loans towards transmission and distribution companies amounted to ₹88.87 billion (~$1.14 billion), followed by generation companies at ₹54.42 billion (~$699.34 million). Loans towards the renewable energy companies accounted for ₹9.14 billion (~$117.46 million). It disbursed ₹2.43 billion (~$31.23 million) in short-term loans.
In January this year, REC raised $1.175 billion (~₹91.43 billion) from a consortium of seven banks. It was the single largest syndicated loan raised in the international bank loan market by any Indian non-banking financial company.
During Q3 of FY22, REC disbursed ₹4.7 billion (~$60.40 million) in loans to the renewable energy sector. For the first nine months (9M) of FY22, the amount disbursed to renewable energy companies stood at ₹19.1 billion (~$245.45 million).