REC (RECLTD) Q4 09/10 earnings summary

Executive summary

• FY10 delivered record growth in lending, operating income and profit; gross loan assets reached ₹66,000 crore at year-end.

• Reported PAT rose 57% YoY to ₹2,001.42 crore, including the effect of a major deferred-tax accounting change.

Financial highlights

• Operating income rose 38% YoY to ₹6,549.76 crore; PBT increased 38% to ₹2,649.19 crore.

• Standalone PAT was ₹2,001.42 crore versus ₹1,272.08 crore; EPS was ₹23.06 versus ₹14.81.

• Loan sanctions were ₹45,357.36 crore, excluding RGGVY subsidy; disbursements including subsidy reached ₹27,127.14 crore, up 22% YoY.

• Recoveries rose to ₹12,496.12 crore from ₹9,796.97 crore; net worth reached ₹11,080.33 crore.

• Total income was ₹6,707.60 crore; interest and other charges were ₹3,896.07 crore.

Outlook and guidance

• Power-sector funding demand is expected to remain strong: 12th Plan generation capacity additions are estimated at 100,000 MW, with total power infrastructure funding above ₹11,000 billion.

• The stated strategy is to capture an optimal share of expected power-sector funding and sustain growth; sector outlook was described as bright and vibrant.

• The XI Plan capacity-addition target is 78,700 MW; combined XI and XII Plan investment in power infrastructure is projected above ₹21,316 billion.