Home Market REC Q2 net profit jumps 25 pc to Rs 1,764 cr

REC Q2 net profit jumps 25 pc to Rs 1,764 cr


NEW DELHI: State-owned REC posted a 25 per cent jump in standalone net profit at Rs 1,764.33 crore for the September quarter, mainly due to higher revenues.

The company's standalone net profit stood at Rs 1,407.76 crore in the quarter ended September 30, 2017, it said in a statement.

This has been the highest ever quarterly profit declared by the company, it added.

Total income of the company grew by 30 per cent to Rs 7,299 crore in the second quarter from Rs 5,604 crore a year ago.

The company sanctioned loans of Rs 49,003 crore in the second quarter, which were 120 per cent higher than Rs 22,300 crore in the year ago period. It disbursed loans of Rs 24,226 crore, which were 76 per cent more than Rs 13,751 crore earlier.

The loan book of the company has seen a growth of 19 per cent, as it grew from Rs 2.16 lakh crore as at September 30, 2017 to Rs 2.57 lakh crore as at September 30, 2018.

The net worth of the company stands at Rs 32,755 crore as at September 30, 2018 and the capital adequacy is also placed at comfortable levels of 16.14 per cent to support the future growth of the company, it added.

The gross NPA ratio has fallen sequentially from 8.12 per cent as at June 30, 2018 to 7.92 per cent as at September 30, 2018.

Further, it said that there are no indications of credit impairment in the loans to the government sector, forming 87 per cent of the loan book.

The company's Chairman and Managing Director P V Ramesh said, "The company has registered a strong operational performance during the current period and has seen a robust growth in the sanctions, disbursements and key financial parameters."

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