REC's consolidated net profit soared 66.1% to Rs 2,197.14 crore on 15.2% increase in total income to Rs 8,824.34 crore in Q2 September 2020 over Q2 September 2019.
Consolidated profit before tax (PBT) surged 49.2% to Rs 2,784.33 crore in Q2 September 2020 as against Rs 1,866.70 crore in Q2 September 2019. Current tax expense for the quarter jumped 225.2% to Rs 788.15 crore as against Rs 242.33 crore in Q2 September 2019. The Q2 result was declared after trading hours yesterday, 6 November 2020.
The board has declared a payment of interim dividend Rs 6 per equity share. The record date is on 17 November 2020 and the dividend shall be paid on 3 December 2020 to the eligible shareholders.
The board has also approved policy for raising of funds through perpetual debt instruments in line with the extant RBI Guidelines and such other regulatory approvals as may be required.
REC said that it had allowed moratorium on payment of all amounts falling due between 1 March 2020 and 31 August 2020 to the eligible borrowers. Accordingly, the repayment of Rs 13,602 crore falling due till 31 August 2020 (including the amount pertaining to the first moratorium period) was deferred for the moratorium period.
Inspite of the moratorium allowed to the borrowers, REC has not experienced any significant impact on its liquidity position due to the access to diversified sources of borrowings. Additionally, the company has available limits of more than Rs 3,000 crore towards long-term loans and Rs 9,800 crore towards working capital short-term loans from various banks.
The Government of India, as a part of its COVID-19 relief package, had announced a liquidity injection to the State Discoms in the form of State Government guaranteed loans through REC and PFC (Power Finance Corporation) to clear the outstanding dues of power generation and transmission companies. As of 31 October 2020, the company has sanctioned and disbursed a sum of Rs 59,206 crore and Rs 16,813 crore respectively to the discoms as part of this liquidity package.
"Considering the resurgence in the business and commercial activity leading to increase in power demand and generation along with discom liquidity package by Government of India, REC's liquidity position and access to diverse sources of funds, there should possibly be no significant impact on the company's ability to maintain its operations, including the going concern assessment. However, the impact will continue to be dependent on future developments, which are uncertain, including any new information concerning the severity of the COVID-19 pandemic and any further action by the Government or the company to contain its spread or mitigate its impact," the company said.
Shares of REC slipped 0.37% to Rs 108.10 on Friday, 6 November 2020. The scrip hovered in the range of Rs 106.90 to Rs 109.20 yesterday.
REC, a Navratna Central Public Sector Enterprise, is engaged in the financing and promotion of transmission, distribution and generation projects in India.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
