MUMBAI: The Maharatna central enterprise REC, which on Monday reported a robust 34% jump in net profit at Rs 4,016 crore for the March quarter, said it will be raising Rs 1.6 lakh crore debt to fuel its growth plans this fiscal as it expects disbursals to jump nearly 18% over last year.
The subsidiary of Power Finance Corporation primarily focuses on financing the power sector and for the full-year reported the highest ever profit of Rs 14,019 crore, which is 27% more than the previous year’s Rs 11,055 crore, on an income of Rs 47,214 crore which rose 20 percent on-year. The company also declared a final dividend of Rs 5 per share, taking the overall payout to Rs 16/share, which is the highest ever for the company.
For the quarter, revenue from operations rose 25% to Rs 12,613 crore from Rs 10,113 crore, the total income rose at a similar pace to Rs 12,643 crore from Rs 10,124 crore. Higher profit was also aided by a 38 bps improvement in the yield to 10.03% and a marginal 3 bps decline in the cost of funds.