REC net profit jumps 57 per cent to Rs2,001 crore

Rural Electrification Corporation (REC), a Navratna public sector undertaking, has reported a 57.33 per cent rise in its net profit for the financial year 2009-10, at Rs2001.42 crore, from the previous year's figure of Rs1272.08 crore. Gross profit of REC stood at Rs2,649.19 crore against Rs1,920.11 crore in the previous financial year.

REC's total income increased by Rs37.68 crore to Rs6,549.76 crore from Rs4,757.17 crore in the year earlier, audited financial results of the company for the financial year ended 31st March 2010 showed.

In January 2010, the company paid an interim dividend of Rs3.00 for each share of Rs10 for the year 2009-10. The board of directors of REC has now recommended final dividend of Rs3.50 per share for the year 2009-10. The total dividend thus adds up to Rs6.50 per share.

During the financial year 2009-10, non-performing assets (NPAs) of the company declined to Rs2.00 crore from Rs20.89 crore in the previous year.

Average yield on loan assets of REC at the end of 31 March 2010 was 11.23 per cent against 10.45 per cent at the end of March 2009. During the period, REC also accounted for 1 per cent agency charges for RGGVY implementation of Rs58.52 crore (net of service tax), the official release said.