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).
Satish Shetty is a Copy Editor with Mercom India. Prior to Mercom, Satish was a multimedia news producer at Reuters, where he gained experience in digital news media. Satish has his Bachelor of Arts (B.A.) degree in Broadcast Journalism from Limkokwing University of Creative Technology, Malaysia.
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