REC Limited has announced the financial results for the first quarter (Q1) of the financial year (FY) 2022.

REC is an infrastructure finance company involved in financing power projects. The company also provides financial assistance to state power generators, state governments, state-owned and private power distribution companies, independent power producers, rural electric co-operatives, and private power generators.

As per the data released by the company, REC’s total income stood at ₹95.92 billion (~$1.29 billion) for Q1 FY 2021, increasing by 18% compared to ₹81.09 billion (~$1.09 billion) during the same period last year.

The net worth of the company at the end of the Q1 FY 2022 stood at ₹456.9 billion (~$6.16 billion), an increase of 22% as compared to the same period last year.

The company registered a net profit of ₹22.47 billion (~$303.16 million) for Q1 FY 2022, an increase of 22.2% compared to ₹18.39 billion (~$248.11 million) in Q1 FY 2021.

The company recorded a net interest income of ₹38.04 billion (~$513.23 million) in Q1 FY 2022, an increase of 36% compared to the same period last year. The total revenue from operations stood at ₹96.32 billion (~$1.29 billion), increasing by 18% compared to ₹81.35 billion (~$1.09 billion) during Q1 FY 2021.

The outstanding loans to the company stood at ₹3.79 trillion (~$51.14 billion) at the end of Q1 FY 2022.

The company disbursed a total amount of ₹150.95 billion (~$2.04 billion) in Q1 FY 2022, compared to ₹152.71 billion (~$2.06 billion) in Q1 FY 2021. The company disbursed an amount of ₹9.51 billion to the renewable sector in Q1 FY 2022, a 55% rise compared to ₹6.14 billion (~$82.84 million) in Q1 FY 2021.

As per the released document, the Tamil Nadu Generation and Distribution Corporation Limited, the Maharashtra State Electricity Distribution Company Limited, and Uttar Pradesh Power Corporation Limited were the chief borrowers at the end of Q1 FY 2022 with loan amounts of ₹285.06 billion (~$3.85 billion), ₹231.45 billion (~$3.12 billion), and ₹201.72 billion (~$2.72 billion), respectively.

The company’s net profit had surged by 71% in FY 2021 to ₹83.62 billion (~$1.15 billion) against ₹48.86 billion (~$673.33 million) in FY 2020. REC had earned a total income of ₹354.10 billion (~$4.88 billion) in FY 2021, up 19% against ₹298.29 billion (~$4.11 billion) in FY 2020.

In February this year, REC raised $500 million through a bond issue under its $7 billion Global Medium Term Notes program. The notes will bear interest at the rate of 2.25% per annum and mature on September 1, 2026. The proceeds from the sale of notes will be used for lending to the power sector in line with the external commercial borrowing regulations and directions of the Reserve Bank of India.

Earlier, REC had received the approval to raise its overall borrowing limit to ₹4.5 trillion (~$60 billion). The foreign currency borrowing allowed is equivalent to $12 billion. The company had said that the decision was taken by the shareholders during its 51st annual general meeting held on September 25, 2020.