REC (RECLTD) Q4 11/12 earnings summary

Executive summary

• FY12 operating income rose 25% YoY to Rs 10,337.59 crore and PAT rose 10% to Rs 2,817.03 crore; loan assets reached Rs 1,01,426 crore, up 24%.

• Disbursements, including RGGVY subsidy, increased to Rs 30,593.30 crore from Rs 28,517.11 crore; sanctions excluding subsidy declined to Rs 51,296.77 crore from Rs 66,419.98 crore.

Financial highlights

• Total income was Rs 10,509.07 crore; PBT Rs 3,792.86 crore and PAT Rs 2,817.03 crore, versus Rs 8,495.26 crore, Rs 3,476.28 crore and Rs 2,569.93 crore in FY11.

• EPS increased to Rs 28.53 from Rs 26.03; net worth rose 15% to Rs 14,744.92 crore from Rs 12,788.62 crore.

• Recoveries, including interest, reached Rs 18,440.09 crore versus Rs 16,951.31 crore; year-end overdue amounts were Rs 283.64 crore, of which Rs 69.89 crore was recovered by May 31, 2012.

Outlook and guidance

• XII Plan estimates call for 88,425 MW of capacity additions and Rs 16 lakh crore of power-sector investment; the financing target includes Rs 7.7 lakh crore of debt requirements.

• NEF is expected to support Rs 25,000 crore of distribution loans sanctioned in FY13-FY14, with Rs 8,466 crore of interest subsidies over 14 years; REC is the scheme’s nodal agency.

• Longer-term outlook cited 180 GW of capacity additions and investment above Rs 34 lakh crore across the XII and XIII Plans; rural electrification, renewables and distributed generation were identified as growth drivers.