State-run REC Ltd on Tuesday posted a 2.5 per cent rise in consolidated net profit at Rs 1,509 crore in June quarter compared to year-ago period, mainly on account of higher revenues.
The company's consolidated net profit was Rs 1,471.97 crore in the June quarter last year, a BSE filing said.
The company's total income rose to Rs 7,010.17 crore in June quarter from Rs 6,351.37 crore a year ago.
REC's main business is to provide finance to power sector.
"We sense a revival of the investor sentiment, as is visible from the healthy growth in our sanctions and disbursements. On the back of a strong financial profile, we have recently raised five-year Reg-S USD Bonds for USD 650 million in July 2019 with a robust investor demand, helping us to close our largest Reg S bonds issue with the tightest coupon ever of 3.375 per cent on our five-year bonds," REC Chairman and Managing Director Ajeet Kumar Agarwal said in the statement.
He said the company has been the torchbearer for the power sector for the last five decades and continues to be optimistic about the sector in the times to come.
REC's loan book grew by 20 per cent to Rs 2.91 lakh crore as on June 30, 2019 from Rs 2.42 lakh crore as on June 30, 2018.
The company's interest coverage ratio has been at 1.46 with earnings per share (EPS) of Rs 7.60 during June quarter this year.
Its net worth stood at Rs 35,913 crore as on June 30, 2019 with a book value per share of Rs 182.
While the operational parameters, that is sanctions and disbursements have reflected a healthy uptrend during the quarter, the capital adequacy ratio continues to stay healthy at 17.90 per cent as on June 30, 2019 to support the future growth of the company, the statement said.
The company sanctioned loans worth Rs 24,288 crore in June quarter, up from Rs 18,767 crore a year ago. Loan disbursement stood at Rs 15,625 crore in June quarter, up from Rs 8,316 crore a year ago.
Asset quality also improved sequentially as net NPA or bad loan levels decreased from 3.79 per cent as on March 31, 2019 to 3.72 per cent as on June 30, 2019.
Provision coverage ratio against credit-impaired assets under the expected credit loss (ECL) framework also improved to 48.22 per cent as on June 30, 2019, it said.
Further, loans to government and public sector, forming 88 per cent of the loan book, have not shown any indications of credit impairment, it added.
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