 "REC posts 21% rise in Q1 profit aided by interest income on loan assets")
BENGALURU (Reuters) - India's state-owned infrastructure finance company REC Ltd on Wednesday reported a 20.9% rise in first-quarter profit, helped by an increase in interest income on loan assets.
The non-banking financial company's consolidated net profit rose to 29.68 billion rupees ($361.98 million) in the three months ended June 30, 2023, from 24.54 billion rupees a year earlier.
The New Delhi-based company, which provides finance to state electricity boards, state utilities and all segments of the private power infrastructure, said total revenue from operations rose 16.7% to 110.88 billion rupees.
Interest income on loan assets, which accounts for 94.4% of revenue from operations, rose nearly 13% to 104.65 billion rupees.
Total revenue from operations rose 16.7% to 110.88 billion rupees.
Further, the company proposed raising funds through private placement of unsecured/secured non-convertible bonds/debentures of upto 1.05 trillion rupees in one or more tranches, subject to approval of shareholders.
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In late July, Indian renewable energy company ACME Group said it raised 40 billion rupees in fresh funding from REC to start its green hydrogen and ammonia project in Oman.
Shares of REC closed 0.81% higher ahead of its results.
($1 = 81.9938 Indian rupees)
(Reporting by Navamya Ganesh Acharya and Biplob Kumar Das in Bengaluru; Editing by Sohini Goswami)
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