REC (RECLTD) Q4 12/13 earnings summary

Executive summary

• FY13 delivered record operating income of ₹13,518.86 crore, up 30% YoY, and PAT of ₹3,817.62 crore, up 36% YoY; loan assets reached ₹1,27,356 crore, up 26%.

• Loan sanctions rose to ₹79,470.49 crore from ₹51,296.77 crore; disbursements increased to ₹40,183.06 crore from ₹30,593.30 crore.

Financial highlights

• Total income was ₹13,598.67 crore vs ₹10,509.07 crore; PBT ₹5,163.95 crore vs ₹3,792.86 crore; PAT ₹3,817.62 crore vs ₹2,817.03 crore.

• Revenue from operations increased to ₹13,518.86 crore from ₹10,423.75 crore; finance costs rose to ₹8,006.25 crore from ₹6,378.80 crore.

• Loan recoveries, including interest, reached ₹26,728.86 crore vs ₹18,440.09 crore; recovery rate was 99.04% against a 98.50% MoU target.

• Net worth rose 20% to ₹17,454.38 crore; EPS was ₹38.66 vs ₹28.53; total assets were ₹1,30,507.29 crore.

Outlook and guidance

• XII Plan power-sector capacity addition target is 88,425 MW; estimated sector debt requirement is ₹9–10 lakh crore, with efforts planned to capture an optimal funding share.

• Strategy prioritizes core lending, green-energy finance, power-equipment finance, energy efficiency and potential equity financing; a senior-officer group is exploring new products.

• NEF proposals of ₹10,953 crore were sanctioned to 11 utilities across 8 states in FY13; the national scheme targets ₹25,000 crore of loans sanctioned in FY13–14 and FY14–15.