Business highlights:

Outstanding loan portfolio continues rise at a strong pace of 17% to Rs 377418 crore at end March 2021. Disbursements surged 36% yoy to Rs 30192 crore in Q4FY2021, as disbursements in the T&D (including RGGVY) jumped 121% to Rs 19734 crore, while generation segment disbursements declined 21% at Rs 9472 crore. The short-term loans disbursements also fell 9% to Rs 300 crore in Q4FY2021.

Sanctions moved up 15% to Rs 17295 crore in Q4FY2021, driven by an increase in generation loans sanction by 1% to Rs 4834 crore, while the sanctions to T&D segment also jumped 11% to Rs 10136 crore in Q4FY2021.

With the decline in cost of funds, NIM rose 3 bps yoy to 3.79% in quarter ended March 2021. Yield on loans declined 49 bps yoy to 10.06%, while cost of funds fell 37 bps yoy to 6.91% in Q4FY2021.

Fund raising moved up 28% to Rs 30506 crore in the quarter ended March 2021, of which Rs 14447 crore raised through institutional bonds. Capital gains bonds served Rs 2287 crore, while about Rs 6722 crore were raised through foreign currency borrowings in Q4FY2021.

Outstanding borrowings increased by 15% from Rs 322511 crore at end March 2021. Institutional bonds increased 14% to Rs 179989 crore, capital gains, Tax Free & Infra bonds were down 12% to Rs 30781 crore and foreign currency borrowing moved up 7% to Rs 47487 crore at end March 2021.

Total Assets increased by 16% from Rs 400233 crore at end March 2021 up from Rs 346488 crore at end March 2020.

Asset Quality

Gross NPA stood at Rs 18,254 crore at end March 2021, while Net NPAs were Rs 6463 crore at end March 2021. GNPA and NNPA ratio's stood at 4.84% and 1.71% at end March 2021 compared with 5.10% and 1.95% a quarter ago and 6.59% and 3.32% at end March 2020.

Book value of the company stood at Rs 217.1 per share at end March 2021, while adjusted Book value (net of net NPA) stood at Rs 184.3 per share at end March 2021.

Quarterly Performance

Income from Operations increased 18% to Rs 9145.61 crore for the quarter ended March 2021. The interest expense moved up 10% to Rs 5438.14 crore, pushing up the NII by 33% to Rs 3707.47 crore in quarter ended March 2021. Other income dipped 92% to Rs 4.23 crore. The total income increased 31% to Rs 3711.70 crore in the quarter ended March 2021.

The operating expenses dipped 80% to Rs 315.64 crore, while provisions jumped 30% to Rs 697.64 crore in the quarter ended March 2021. The Profit before Tax rose 286% to Rs 2695.77 crore in the quarter ended March 2021. The effective tax rate dipped 1437 bps yoy to 23.2%. The Net Profit zoomed 375% to Rs 2069.63 crore in the quarter ended March 2021.

Financial Performance FY2021

For the year ended March 2020 (FY2021), REC reported 19% increase in Income from Operations at Rs 35387.89 crore, while interest expense increased 13% to Rs 21489.08 crore, leading to a 29% rise in NII to Rs 13898.81 crore. Other income declined 65% to Rs 22.55 crore. The Staff cost dipped 18% to Rs 144.84 crore, while the other expenditure plunged 79% to Rs 591.24 crore. The depreciation stood at Rs 9.53 crore in FY2021 compared with Rs 10.00 crore in FY2020. Provision for bad debts and standard assets jumped 172% to Rs 2419.62 crore in FY2021. Profit before Tax stood at Rs 10756.13 crore, indicating an increase of 54% on a yoy basis. An effective tax rate stood at 22.3% in FY2021 compared with 30.0% in FY2020. The net profit of the company increased 71% to Rs 8361.78 crore in FY2021