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					</table><p><a href="https://www.recindia.nic.in/" target="_blank" rel="noopener">REC Limited</a>&#8216;s consolidated net profit saw a marginal increase of 4% to ₹51.76 billion (~$628.57 million) in the first half (1H) of FY 2023, compared to ₹49.6 billion (~$602.34 million) in 1H FY 2022.</p>
<p>The company posted a total income of ₹194.17 billion (~$2.36 billion), a decrease of 1% compared to ₹196.14 billion (~$2.38 billion) during the same period last year.</p>
<p>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.</p>
<p>The company&#8217;s loan book increased by 2% to ₹3.94 trillion (~$47.85 billion) as of September 30, 2022. The increase in loan book, coupled with sound asset resolutions, reduced net credit-impaired assets to 1.24% with a provision coverage ratio of 69.28% as of September 30, 2022.</p>
<p>Transmission and distribution companies accounted for ₹888.66 billion (~$10.79 billion) of the approved amounts in 1H 2023, an increase of 445% against ₹163.01 billion (~$1.97 billion) in the same period last year. Generation companies accounted ₹379.92 billion (~$4.61 billion), an increase of 361% compared to ₹82.46 billion (~$1.01 billion) during the same period last year. The approved loans for renewables stood at ₹105.63 billion (~$1.28 billion), an increase of 6.4% against ₹99.25 billion (~$1.21 billion) in 1H 2022.</p>
<p>REC disbursed ₹302.69 billion (~$3.67 billion) in 1H 2023 compared to ₹368.24 billion (~$4.47 billion) during the same period last year. Renewable energy companies received loan disbursements amounting to ₹83.34 billion (~$1.01 billion), a 426% YoY increase compared to ₹15.85 billion (~$192.48 million).</p>
<p>Distribution companies had the largest share of the disbursements with ₹119.18 billion (~$1.45 billion), a decrease of 35% compared to ₹184.15 billion (~$2.24 billion) in 1H FY 2022. In contrast, generation companies accounted for ₹63.93 billion (~$776.36 million), decreasing by 26% from  ₹86.87 billion (~$1.05 billion) during the corresponding period last year.</p>
<p style="text-align: center;"><strong><a href="https://mercomindia.com/wp-content/uploads/2022/10/REC-2.png"><img decoding="async" loading="lazy" class="alignnone wp-image-43701 size-full" src="https://mercomindia.com/wp-content/uploads/2022/10/REC-2.png" alt="REC-2" width="747" height="328" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/REC-2.png 747w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/REC-2-300x132.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/REC-2-650x285.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/REC-2-624x274.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/REC-2-600x263.png 600w" sizes="(max-width: 747px) 100vw, 747px" /></a></strong></p>
<p><strong>Second Quarter (Q2) FY 2023</strong></p>
<p>The company&#8217;s consolidated net profit increased by 11% in the second quarter (Q2) of FY 2023 to ₹27.32 billion (~$331.77 million) against ₹24.54 billion (~$298.01 million) during last year. The numbers marked an increase of 1.5% compared to ₹26.92 billion (~$326.91 million) during Q2 2022.</p>
<p>REC earned a total income of ₹99.64 billion (~$1.21 billion) during the quarter, up 5% against ₹95.06 billion (~$1.15 billion) in Q1 FY 2023. The numbers were down by 1% compared to ₹100.56 billion (~$1.22 billion) during the corresponding period last year.</p>
<p>Aided by a strong performance, the company&#8217;s net worth swelled to ₹534.57 billion (~$6.49 billion) at the end of September 2022, an increase of 2% quarter-over-quarter (QoQ).</p>
<p>Transmission and distribution companies accounted for ₹798.68 billion (~$9.69 billion) of the approved amounts, an increase of 1,059% compared to ₹68.99 billion (~$837.81 million) in Q2 2022. Generation companies accounted ₹23.3 billion (~$282.95 million), a decrease of 27% compared to ₹31.85 billion (~$386.78 million) during the same period last year. The approved loans for renewables stood at ₹6.78 billion (~$82.34 million), a YoY decrease of 91% against ₹71.14 billion (~$863.92 million).</p>
<p>The company disbursed a total of ₹178.27 billion (~$2.16 billion) during Q2 2023. Renewable energy companies received loan disbursements of ₹22.77 billion (~$276.52 million), a 328% YoY increase against ₹5.31 billion (~$64.48 million).</p>
<p>Distribution companies had the largest share of the disbursements with ₹184.85 billion (~$2.24 billion), a YoY growth of 25% compared to ₹147.42 billion (~$1.79 billion). Generation companies accounted for ₹44.86 billion (~$544.77 million), a 5% decrease from ₹47.3 billion (~$574.41 million) during the corresponding period last year.</p>
<p>Of late, the organization expanded its business offerings to fund infrastructure development projects such as metros. REC signed a loan agreement of ₹144.34 billion (~$1.75 billion) with the Mumbai Metropolitan Region Development Authority for nine metro projects being developed in the Mumbai metropolitan region.</p>
<p>The company <a href="https://mercomindia.com/rec-limited-posts-annual-profit-%e2%82%b9100-billion-highest-ever/" target="_blank" rel="noopener">reported</a> a total income of ₹392.30 billion (~$5.05 billion) for FY 2022, an 11% YoY increase over ₹354.10 billion (~$4.56 billion).</p>
<p>In January this year, REC <a href="https://mercomindia.com/rec-1-175-billion-low-cost-financing-power-projects/" target="_blank" rel="noopener">raised</a> $1.175 billion (~₹82.45 billion) from a consortium of seven banks as the mandated lead arrangers and bookrunners. It was the single largest syndicated loan raised in the international bank loan market by any Indian non-banking financial company.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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REC Limited’s Loan Disbursements to Renewable Energy Companies Rises by 426% in 1H FY 2023

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