REC Limited, a public infrastructure finance company involved in financing power projects, disbursed ₹4.7 billion (~$62.93 million) in loans to the renewable energy sector in the third quarter (Q3) of the financial year (FY) 2022.

This amount was a 10% increase from ₹4.27 billion (~$57.17 million) paid out in the same period last year.

 REC provides financial assistance to state power producers, state governments, state-owned and private power distribution companies, independent power producers, rural electric co-operatives, and private power producers.

 In Q3 FY 2022, the company provided ₹118.39 billion (~$1.58 billion) in loans to the power sector, compared to ₹186.98 billion (~$2.5 billion) in the same period last year.

Source: REC Limited

REC’s loan book also grew by 9% to ₹3.89 trillion (~$52.08 billion) as of December 31, 2021, compared to ₹3.57 trillion (~$47.80 billion) as of December 31, 2020. The provision coverage ratio against credit-impaired assets stood at 65.72% as of December 31.

In the first nine months (9M) of FY 2022, the corporation disbursed ₹19.1 billion (~$225.7 million) to the renewable energy sector, a 35% YoY decline compared to ₹25.79 billion (~$345.26 million) during 9M FY 2021.

As per the company data, Tamil Nadu Generation and Distribution Corporation was the chief borrower with a loan of ₹369.13 billion (~$4.94 billion) at the end of Q3 2022. Uttar Pradesh Power Corporation and Maharashtra State Electricity Distribution Company had borrowings of ₹212.2 billion (~$2.84 billion) and ₹209.33 billion (~$2.8 billion), respectively.

The company also announced its highest ever quarterly net profit at ₹27.73 billion (~$370.86 million) in Q3 2022, a 23% YoY increase compared to ₹22.63 billion (~$302.65 million) in the same period last year.

REC recorded an 11% year-over-year (YoY) growth in its total income in the third quarter (Q3) of the financial year (FY) 2022. Its total income increased to ₹100.39 billion (~$1.34 billion) in Q3 FY 2022 from ₹90.47 billion (~$1.2 billion) in the same period last year.

The growth was due to the sound income, effective cost management, and subsequent quarterly profit.

The company’s net worth jumped 20% YoY to ₹502.58 billion (~$6.72 billion) as of December 31, 2021.

In Q2 FY 2022, REC registered a net profit of ₹27.39 million (~$365.2 million), a 25% increase compared to ₹21.90 billion (~$292.01 million) in Q2 FY 2021.

Last month, REC Limited raised $1.175 billion (~$82.45 million) from a consortium of seven banks to fund infrastructure power projects permitted under the Reserve Bank of India guidelines.