REC Q4 profit rises 14% to Rs1,319 crore
REC posted a net profit of Rs1,160.03 crore in the fourth quarter of the year ago period
Mumbai: Rural Electrification Corporation (REC) on Tuesday reported a net profit of Rs 1,319.23 crore on a standalone basis in the fourth quarter ended 31 March, up 14% from Rs 1160.03 crore in the same period last year.
Total standalone revenues for the quarter under consideration was marginally lower at Rs 5,978.32 as compared to Rs 6,084.47 in the January-March quarter in 2016.
For the financial year 2016-17, the company reported a consolidated net profit of Rs 6313.37 crore, up 11% from Rs 5,691.42 crore last fiscal.
The total consolidated revenues stood at Rs 24,686 crore for the financial year, up 2.3% from Rs 24,129.93 crore last fiscal.
“The power sector is going through a transformation due to the number of government initiatives to achieve its target of affordable, 24/7 power for all by 2021-22,” REC chairman and MD, PV Ramesh said here. “Demand is growing consistently at an average of 7-10%. The installed capacity is expected to grow to 540 gigawatts from 327 gigawatts currently, which requires a financing of about Rs 10.3 lakh crore in five years.”
During the year, REC had sanctioned Rs 83,871 crore of loans and Rs 50,000 crore was in transmission and distribution (T&D) in tune with the government’s condition that the biggest bottleneck is in T&D, he said. This represents a growth of 48% from previous year’s sanctions at Rs 65,000.
The disbursements stood at Rs 58,000 crore, up 26% from the previous year’s Rs 46,000 crore. Of this, Rs 30,000 was in T&D.
“We will maintain the momentum in the current year, and take it further,” Ramesh said.
As on 31 March, the loan book of the company has increased to Rs 2.02 lakh crore and the outstanding borrowings is Rs 1.68 lakh crore, he said.
The gross NPAs stand at 2.41% against 2.11% last year. In the current fiscal, the company is looking to raise Rs 55,000 crore, which will be more than double of what it raised last year.
“Due to the successful implementation of UDAY scheme we have received Rs 42,700 crore from the discoms. Therefore, last year we raised about Rs 22,000 crore and this year, we will raise Rs 55,000 crore,” Ramesh said. “We are looking to raise USD 1 bn through foreign currency debt this financial year. In June-end we plan to raise raise USD 300 million through green dollar bonds,” he added.
He indicated the PSU will look at raising up to Rs 30,000 crore through rupee-denominated bonds.