NEW DELHI: Power sector financier REC Ltd recorded a nearly 23% increase in its consolidated net profit for the quarter ended June 2021 (Q1FY21) at Rs 2,268.66 crore.
According to the stock exchange filings, the profit was driven primarily by higher revenues during the quarter compared to the previous year. In Q1 of the previous year, REC’s consolidated net profit had stood at Rs 1,845.30 crore.
The company’s filings also showed that following the Union government’s relief package for power distribution companies (discom) announced last summer, it has already sanctioned and disbursed Rs 67,838 crore and Rs 41,177 crore, respectively.
Following the large scale impact of the pandemic on discom dues last year, the Union government had announced a Rs 1.35 lakh crore liquidity injection to discoms in the form of state government-guaranteed loans through sector financiers REC and PFC Ltd.
The programme has helped discoms sharply reduce overdue that had risen to over Rs 1.3 lakh crore in the second half of last year to around Rs 67,000 crore as of May 2021.
Meanwhile, REC’s total income during April-June rose to Rs 9,639.98 crore from Rs 8,136.37 crore a year ago. The company’s board of directors has also approved an interim dividend of Rs 2 per share for financial year 2021-22, and a final dividend of Rs 1.71 per share for 2020-21, subject to shareholders’ approval. It has approved a fundraising of up to Rs 85,000 crore, either in one or more tranches.
Despite pandemic
Under Centre’s relief package for discoms announced last summer following Covid outbreak, REC has sanctioned and disbursed Rs 67,838 crore and Rs 41,177 crore, respectively.