REC Ltd Q3 PAT up 22.83 at Rs2,773cr on sharply higher interest spreads in the quarter

7 Feb 2022 , 08:21 AM

REC Ltd reported 10.48% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs10,037cr. On a sequential basis, the revenues were marginally lower for the quarter by -0.11%.

During the quarter, there was a 10% growth in interest income in the quarter. The net gains from fair value changes of holdings more than doubled in the quarter to Rs246cr.

The impairment of financial instruments were higher on a yoy basis but lower on sequential basis. REC has a net worth of Rs50,257cr as of the close of the quarter.

The consolidated Profit after tax (PAT) for the Dec-21 quarter was up 22.83% at Rs2,773cr as the interest spread widened with a 10% growth in interest income and marginally rise in interest costs.

The operating margin for the quarter stood at 34.17%, largely on the back of an improved interest spread in the quarter. The gross credit impaired ratio of REC stands at 5.07% while net credit impairment is at 1.74%.

Net margins increased from 24.85% in the Dec-20 quarter to 27.63% in the Dec-21 quarter. Net margins were higher sequentially too.

Financial highlights for Dec-21 compared yoy and sequentially

	REC Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 10,037.05	₹ 9,084.57	10.48%	₹ 10,048.02	-0.11%
Net Profit (Rs cr)	₹ 2,773.44	₹ 2,257.96	22.83%	₹ 2,692.27	3.01%
Diluted EPS (Rs)	₹ 14.04	₹ 11.44		₹ 13.63
Net Margins	27.63%	24.85%		26.79%