REC (RECLTD) Q4 13/14 earnings summary

Executive summary

• FY14 delivered higher operating income and profit, with loan assets reaching ₹1,48,641 crore; loan sanctions and disbursements were lower YoY.

• Rural electrification, distribution-system improvements and power generation financing remained core activities, alongside expansion of renewable-energy lending.

Financial highlights

• Operating income rose 26% YoY to ₹17,017.98 crore; total income was ₹17,120.80 crore vs ₹13,598.67 crore.

• PBT increased to ₹6,531.12 crore from ₹5,163.95 crore; PAT rose 23% to ₹4,683.70 crore from ₹3,817.62 crore.

• EPS was ₹47.43 vs ₹38.66; net worth grew 18% to ₹20,669.46 crore, and loan assets increased 17% to ₹1,48,641 crore.

• Loan sanctions, excluding RGGVY and DDG, were ₹70,739.48 crore vs ₹79,470.49 crore; disbursements, including subsidies, were ₹37,969.99 crore vs ₹40,183.06 crore.

Outlook and guidance

• FY15 Indian GDP growth was projected at 5.5%; a stable government and renewed investment were expected to support infrastructure activity.

• Power-sector plans cited 88,537 MW of XII Plan capacity additions and ₹14 lakh crore of funding needs; estimated generation investment across XII–XIII Plans exceeded ₹34 lakh crore.

• Strategy prioritizes core financing, green-energy lending in solar, biomass and wind, and exploration of equipment finance, energy efficiency and equity financing.