Capitaline

Results 04-Feb-22

Analysis

REC

NII rises 24% in Q3FY2022

REC has posted strong 23% jump in the net profit to Rs 2772.65 crore in the quarter ended December 2021 (Q3FY2022). The income from operation increased 11% to Rs 10006.89 crore in Q3FY2022. The interest expense moved up 2% to Rs 5548.72 crore, pushing up the NII by 24% to Rs 4458.17 crore in quarter ended December 2021. Other income jumped 555% to Rs 32.05 crore. The total income increased 25% to Rs 4490.22 crore in the quarter ended December 2021.

The operating expenses moved up 265% to Rs 214.43 crore, while provisions moved up 12% to Rs 819.02 crore in the quarter ended December 2021. The Profit before Tax rose 23% to Rs 3451.70 crore in the quarter ended December 2021. The effective tax rate increased 20 bps yoy to 19.7%. The Net Profit galloped 23% to Rs 2772.65 crore in the quarter ended December 2021.

Financial Performance 9MFY2022

For the nine months ended December 2021 (9MFY2022), REC reported 13% increase in Income from Operations at Rs 29552.39 crore, while interest expense increased 4% to Rs 16699.83 crore, leading to a 26% rise in NII to Rs 12852.56 crore.

Other income moved up 318% to Rs 76.49 crore. The Staff cost increased 11% to Rs 122.79 crore, while the other expenditure surged 56% to Rs 482.98 crore. The Depreciation stood at Rs 12.53 crore in 9MFY2022 compared with Rs 6.88 crore in 9MFY2021.

Provision for bad debts and standard assets jumped 58% to Rs 2718.97 crore in 9MFY2022. Profit before Tax stood at Rs 9591.78 crore, indicating an increase of 19% on a yoy basis.

An effective tax rate stood at 22.3% in 9MFY2022 compared with 30.0% in 9MFY2021. The net profit of the company increased 23% to Rs 7758.04 crore in 9MFY2022

Rural Electrification Corporation: Results
Particulars	2112 (3)	2012 (3)	Var %	2112 (9)	2012 (9)	Var %	2103 (12)	2003 (12)	Var %
Income from Operations	10006.89	9042.13	11	29552.39	26242.28	13	35387.89	29765.21	19
Interest & Finance Expenses	5548.72	5445.97	2	16699.83	16050.94	4	21489.08	18997.05	13
NII	4458.17	3596.16	24	12852.56	10191.34	26	13898.81	10768.16	29
Other Income	32.05	4.89	555	76.49	18.32	318	22.55	63.92	-65
Total Income	4490.22	3601.05	25	12929.05	10209.66	27	13921.36	10832.08	29
Staff Cost	40.91	42.64	-4	122.79	110.22	11	144.84	175.79	-18
Other Expenditure	173.52	16.16	974	482.98	310.22	56	591.24	2773.44	-79
Gross Profit	4275.79	3542.25	21	12323.28	9789.22	26	13185.28	7882.85	67
Depreciation	5.07	2.24	126	12.53	6.88	82	9.53	10.00	-5
Provisions and Write-off	819.02	729.96	12	2718.97	1721.98	58	2419.62	889.56	172
Profit before tax	3451.70	2810.05	23	9591.78	8060.36	19	10756.13	6983.29	54
Tax expense	679.05	547.12	24	1833.74	1768.21	4	2394.35	2097.13	14
PAT	2772.65	2262.93	23	7758.04	6292.15	23	8361.78	4886.16	71
EPS	56.2	45.8		52.4	42.5		42.34	24.74
* Annualized on current equity of Rs 1974.92 crore. Face Value: Rs 10, Figures in Rs crore
Source: Capitaline Corporate Database

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