REC (RECLTD) Q4 10/11 earnings summary

Executive summary

• FY2010-11 delivered record growth: operating income rose 26.06% YoY to ₹8,256.91 crore; PAT increased 28.40% to ₹2,569.93 crore.

• Loan sanctions excluding RGGVY subsidy reached ₹66,419.98 crore, up from ₹45,357.36 crore; disbursements including subsidy were ₹28,517.11 crore.

• Gross NPAs were ₹19.54 crore, or 0.02% of gross loan assets, at March 31, 2011.

Financial highlights

• Standalone gross income was ₹8,495.27 crore vs ₹6,707.60 crore; PBT was ₹3,476.63 crore vs ₹2,649.19 crore.

• Standalone PAT was ₹2,569.93 crore vs ₹2,001.42 crore; EPS rose to ₹26.03 from ₹23.06.

• Consolidated gross income reached ₹8,532.20 crore and PAT ₹2,584.89 crore, vs ₹6,747.63 crore and ₹2,022.25 crore, respectively.

• Total dividend was ₹7.50 per share, including ₹3.50 interim and ₹4.00 proposed final; payout was ₹740.59 crore, excluding dividend tax.

Outlook and guidance

• Power-sector demand and investment needs were expected to remain strong; planned generation additions of 177,800 MW across the 11th and 12th Plans imply investment above ₹21,31,600 crore.

• Strategy targets expansion into power-project linkages, consultancy and fee income, renewable and decentralized generation, equipment finance, power trading and loan underwriting or syndication.

• FY2011-12 CSR allocation was set at 0.5% of PAT; the FY2010-11 CSR budget was 0.25% of prior-year PAT, with ₹5.10 crore of projects sanctioned.