The power sector NBFC had clocked a net profit of Rs 2,197.14 crore in the quarter ended September 30, 2020, it said in a BSE filing.
Total income rose to Rs 10,056.53 crore in the quarter as against Rs 8,822.10 crore in the year-ago period.
The board declared a second interim dividend of Rs 2.50 per equity share of Rs 10 each for 2021-22.
The record date for the interim dividend is Friday, November 12, 2021, and it will be paid/dispatched on Thursday, November 25, 2021, it added.
In a statement, the company said owing to the record income, effective cost management and resultant quarterly profit, the annualised earnings per share for the quarter ended September 30, increased to Rs 55.47 as against Rs 44.36 per share during the same quarter last year.
Aided by growth in profits, the net worth has grown to Rs 47,767 crore as of September 30, an increase of 19 per cent year-on-year, it said.
The loan book has maintained its growth trajectory and has increased by 11 per cent to Rs 3.87 lakh crore as of the September 2021 quarter.
The increase in loan book coupled with asset resolutions and improved provision coverage ratio has enabled in reducing the net credit-impaired assets to 1.52 per cent in the quarter under review, it explained.
The provision coverage ratio against credit-impaired assets stands at 67.63 per cent.
The capital adequacy ratio stands at a comfortable 21.15 per cent as of September 30, 2021, implying ample opportunity to support future growth, the company noted.
Continuing with the tradition to reward its shareholders, in addition to the first interim dividend of Rs 2.00 per equity share, the Board of Directors has declared a second interim dividend of Rs 2.50 per equity share and November 12, 2021, has been fixed as the record date for payment of interim dividend, it added.
REC Ltd is a Navratna NBFC focusing on power sector financing and development across India.
Established in 1969, REC Ltd has completed over fifty years in the area of its operations. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities.
Its business activities involve financing projects in the complete power sector value chain; different type of projects includes generation, transmission, distribution projects, and renewable energy projects.
