REC (RECLTD) Q4 08/09 earnings summary

Executive summary

• FY 2008-09 delivered record earnings: PAT rose 48% YoY to ₹1,272.08 crore; disbursements increased 37% to ₹22,277.86 crore, including RGGVY subsidy.

• Recoveries reached ₹9,796.97 crore, while gross NPAs fell to 0.14% of gross loan assets from 0.82% a year earlier.

Financial highlights

• Operating income increased 41% to ₹4,757.17 crore; gross income was ₹4,931.28 crore versus ₹3,537.66 crore in FY 2007-08.

• PBT increased 46% to ₹1,920.11 crore; PAT increased 48% to ₹1,272.08 crore from ₹860.15 crore.

• Standalone EPS was ₹14.81 versus ₹10.94; net worth rose to ₹6,190.08 crore from ₹5,367.71 crore.

• Loan sanctions, excluding RGGVY subsidy, were ₹40,745.84 crore versus ₹46,770 crore; recoveries rose to ₹9,796.97 crore from ₹9,042 crore.

Outlook and guidance

• FY 2009-10 market borrowings of ₹30,000 crore were expected; the proposed overall borrowing ceiling was ₹75,000 crore, up from ₹60,000 crore.

• Power-sector financing opportunities were expected to remain strong, supported by Eleventh Plan capacity additions and a project pipeline exceeding 1.55 lakh MW for the Twelfth Plan and beyond.

• Management aimed to sustain growth and profitability while supporting power infrastructure development and the “Power for all by 2012” goal.