REC net profit jumps 23 pc to Rs 2,268 cr in Jun quarter

REC Ltd has posted nearly 23 per cent jump in its consolidated net profit to Rs 2,268.66 crore for the June 2021 quarter, mainly due to higher revenues.

The companys consolidated net profit had stood at Rs 1,845.30 crore in the quarter ended on June 30, 2020, according to a BSE filing.

Its total income during April-June 2021 rose to Rs 9,639.98 crore, from Rs 8,136.37 crore in the year-ago period.

The firms board of directors in its meeting held on Thursday also approved an interim dividend at the rate of Rs 2 per share for 2021-22, and a final dividend Rs 1.71 per share for 2020-21, subject to approval in the ensuing annual general meeting (AGM).

It approved a fundraising of up to an amount of Rs 85,000 crore, in one or more tranches, subject to approval of shareholders in ensuing AGM.

Further, the company has fixed on September 17, 2021, as the record date for the purpose of determining the eligibility of members for the said final dividend, subject to approval of shareholders at the ensuing AGM. The dividend, if declared at the ensuing AGM, will be paid on Thursday, October 21, 2021.

The board also approved raising of funds through issue of unsecured/ secured non-convertible bonds/ debentures through private placement, up to an amount of Rs 85,000 crore, in one or more tranches, subject to approval of shareholders.

The funds will actually be raised, from time to time, during a period of one year from the date of passing of resolution by the shareholders in the ensuing annual general meeting, with the approval of Competent Authority as per powers delegated in this regard, by its board of directors.

The Government of India, as part of its COVID-19 relief package, had announced liquidity injection to the state power distribution companies (discoms) in the form of state government-guaranteed loans through REC and PFC, to clear the outstanding dues of power generation and transmission companies. As on July 30 this year, the company has already sanctioned and disbursed Rs 67,838 crore and Rs 41,177 crore, respectively, to the discoms as part of this liquidity package, it stated. The companys main business is to provide finance to the power sector.

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