REC - Rural Electrification Corporation Ltd.

05/13/2022 | Press release | Archived content

REC declares its Financial Results for Q4 and 12M FY22

REC declares its Financial Results for Q4 and 12M FY22
Dated: May 13 2022

The Board of Directors of REC Limited approved the audited standalone and consolidated financial results for Q4 & 12M FY22.

Operational and Financial Highlights - FY22 vs FY21 (Standalone)

Total Income: ₹39,230 crores vs. ₹35,410 crores, up 11%

Net Profit: ₹10,046 crores vs. ₹8,362 crores, up 20%

Operational and Financial Highlights - Q4 FY22 vs Q4 FY21 (Standalone)

Total Income: ₹9,602 crores vs. ₹9,150 crores, up 5%

Net Profit: ₹2,288 crores vs. ₹2,070 crores, up 11%

Owing to the corporation's sound income, effective cost management and resultant quarterly profit, the Earnings Per Share for the year ended 31st March 2022 increased to ₹50.87 as against ₹42.34 per share as of 31st March 2021. Aided by the growth in profits, the Net Worth of the company during FY22 climbed to ₹50,986 crores, registering an increase of 17% YoY.

In spite of sluggish credit offtake across the infrastructure sector as a result of the Covid-19 pandemic, REC has increased its Loan book by 2% to ₹3.85 lakh crore. With an objective of improving its stressed loan assets, REC has successfully resolved three projects worth ₹2,550 crores during Q4 FY22. Consequently, the Net Credit-impaired assets have reduced to 1.45% during FY22, with a comfortable Provision Coverage Ratio of 67.40%.

With a strong order book and Capital Adequacy Ratio of 23.61% as of 31st March 2022, REC has a solid foundation and an ample number of opportunities to support its future growth.

Continuing with the tradition of rewarding its shareholders, in addition to the interim dividends already paid totalling ₹10.50/- per equity share, the Board of Directors of the Company have declared a final dividend of ₹4.80/- per equity share for the FY 21-22, subject to the approval of shareholders in the ensuing AGM. This translates to a 153% dividend payout on the face value of ₹10/- per share.