PSUs

REC records all-round improvement in FY22

By IndianMandarins- 14 May 2022
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rec-records-all-round-improvement-in-fy22

New Delhi (14.05.2022): REC's total income for FY22 jumped 11% to ₹39,230 crores vs. ₹35,410 crores in FY21. Net profit was also up 20% to ₹10,046 crores vs. ₹8,362 crores,
In Q4FY22 vs Q4 FY21, standalone total income rose 5% to ₹9,602 crores vs. ₹9,150 crores and Net Profit by 11% to ₹2,288 crores vs. ₹2,070 crores.
Owing to the effective cost management and resultant quarterly profit, the Earnings Per Share for the year ended 31st March 2022 increased to ₹50.87 as against ₹42.34 per share as of 31st March 2021.
Aided by the growth in profits, the Net Worth of the company during FY22 climbed to ₹50,986 crores, registering an increase of 17% YoY.
In spite of sluggish credit offtake across the infrastructure sector as a result of the Covid-19,
pandemic, REC increased its Loan book by 2% to ₹3.85 lakh crore. With an objective of improving its stressed loan assets, REC has successfully resolved three projects worth ₹2,550 crores during Q4 FY22. Consequently, the Net Credit-impaired assets have reduced to 1.45% during FY22, with a comfortable Provision Coverage Ratio of 67.40%.
With a strong order book and Capital Adequacy Ratio of 23.61% as of 31st March 2022, REC had a solid foundation and an ample number of opportunities to support its future growth.
Continuing with the tradition of rewarding its shareholders, in addition to the interim dividends already paid totaling ₹10.50 per equity share, the Board of Directors of the Company has declared a final dividend of ₹4.80/- per equity share for the FY 21-22, subject to the approval of shareholders in the ensuing AGM. This translates to a 153% dividend payout on the face value of ₹10 per share.

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