REC Limited lends 9.51 billion yen to renewable energy sector in first quarter of fiscal 2022, up 55% qoq
REC limited announced financial results for the first quarter (Q1) of fiscal year (FY) 2022.
REC is an infrastructure finance company involved in the financing of energy projects. The company also provides financial assistance to state power producers, state governments, public and private power distribution companies, independent power producers, rural power cooperatives and private power producers. .
According to data released by the company, REC’s total revenue was 95.92 billion yen (~ $ 1.29 billion) for the first quarter of fiscal 2021, up 18% from 81.09 billion yen (~ $ 1.09 billion) in the same period last year.
The company’s net worth at the end of the first quarter of fiscal 2022 was 456.9 billion yen (~ $ 6.16 billion), an increase of 22% from the same period l ‘last year.
The company reported net profit of 22.47 billion yen (~ $ 303.16 million) in the first quarter of fiscal 2022, an increase of 22.2% from the 18.39 billion yen ( ~ $ 248.11 million) in the first quarter of fiscal 2021.
The company recorded net interest income of 38.04 billion yen (~ $ 513.23 million) in the first quarter of fiscal 2022, an increase of 36% over the same period in the year last. Total operations revenue was 96.32 billion yen (~ $ 1.29 billion), up 18% from 81.35 billion yen (~ 1.09 billion dollars) in the first quarter of fiscal 2021.
The company’s loans outstanding stood at 3.7 trillion yen (approximately $ 51.14 billion) at the end of the first quarter of fiscal 2022.
The company spent a total of 150.95 billion yen (about $ 2.04 billion) in the first quarter of fiscal 2022, compared to 152.71 billion yen (about $ 2.06 billion) in the first quarter. quarter of fiscal year 2021. The company paid 9.51 billion yen to the renewable energy sector in the first quarter. Fiscal 2022, an increase of 55% from 6.14 billion yen (~ $ 82.84 million) in the first quarter of fiscal 2021.
According to the published document, Tamil Nadu Generation and Distribution Corporation Limited, Maharashtra State Electricity Distribution Company Limited and Uttar Pradesh Power Corporation Limited were the major borrowers at the end of the first quarter of fiscal 2022 with loan amounts of 285.06 billion yen (~ $ 3.85 billion yen), 231.45 billion yen (~ $ 3.12 billion) and 201.72 billion yen (~ $ 2.72 billion), respectively .
The company’s net profit jumped 71% in fiscal 2021 to 83.62 billion yen (~ $ 1.15 billion) from 48.86 billion yen (~ $ 673.33 million) in FY2020. REC had total revenue of 354.10 billion yen (~ $ 4.88 billion) in FY2021, up 19% from 298.29 billion yen (~ $ 4. $ 11 billion) in fiscal 2020.
In February of this year, REC raised $ 500 million through a bond issue under its $ 7 billion Global Medium Term Notes program. The notes will bear interest at 2.25% per annum and will mature on September 1, 2026. The proceeds from the sale of the notes will be used to lend to the power sector in accordance with external commercial borrowing regulations and guidelines. of the Reserve. Bank of India.
Previously, REC had received approval to raise its overall borrowing limit to 4.5 trillion yen (approximately $ 60 billion). Authorized foreign currency borrowing is equivalent to $ 12 billion. The company said the decision was taken by shareholders at its 51st annual general meeting held on September 25, 2020.
Rakesh is a journalist at Mercom India. Prior to joining Mercom, he held numerous positions as Business Correspondent, Associate Editor, Senior Content Editor and Sub Editor at bcfocus.com, CIOReview / Silicon India, Verbinden Communication and Bangalore Bias. Rakesh holds a BA in English from Indira Gandhi National Open University (IGNOU). More articles by Rakesh Ranjan.