The REC’s total income increased to Rs 6,685.90 crore in the March quarter, compared with Rs 5,948.09 crore a year ago.
State-owned Rural Electrification Corporation (REC) posted around 50 percent jump in standalone net profit to Rs 1,256.13 crore in the March 2019 quarter, mainly on the back of higher income.
The company’s standalone net profit for the quarter ended March 31, 2018, was Rs 839.40 crore, a BSE filing said. Its total income increased to Rs 6,685.90 crore in the March quarter, compared with Rs 5,948.09 crore a year ago.
In the full fiscal 2018-19, the firm’s standalone net profit stood at Rs 5,763.72 crore as against Rs 4,419.89 crore in the year-ago period. Total income was Rs 25,341.16 crore, against Rs 22,467.35 crore in the previous year. REC Ltd’s consolidated net profit for 2018-19 was Rs 5,741.38 crore, up from Rs 4,450.52 crore a year ago.
The company’s main business is to finance the power sector.
In December 2018, the Cabinet Committee on Economic Affairs (CCEA) had provided it’s ‘In Principle’ approval for the strategic sale of the government’s existing 52.63 percent total paid-up equity shareholding in Rural Electrification Corporation (REC) to Power Finance Corporation (PFC).
The acquisition intended to achieve integration across the power chain, obtain better synergies, create economies of scale and have enhanced capability to support energy access and energy efficiency by improved capability to finance power sector, it added. It may also allow for cheaper fundraising with an increase in bargaining power for the combined entity.
In August 2018, REC signed a loan agreement with German bank KfW worth euro 200 million for funding renewable energy projects. This is REC’s fourth line of credit under Indo-German Development Cooperation which will be utilised to fund green energy projects in India. The company sanctioned Rs 7,034 crore for renewable energy projects last financial year (2017-18), an over three-fold jump as compared to sanctions of Rs 2,090 crore in the previous fiscal.