REC Ltd

Rural Electrification Corporation Limited is engaged in other financial services and activities-other Credit granting. The Company provides finance to power sector. It finances and promotes rural electrification projects all over the country. It provides financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them.

Pros:
Stock is trading at 0.75 times its book value
Stock is providing a good dividend yield of 8.43%.
Company has been maintaining a healthy dividend payout of 36.36%
Cons:
Company has low interest coverage ratio.
Promoter's stake has decreased
The company has delivered a poor growth of 8.15% over past five years.
Company might be capitalizing the interest cost

Peer Comparison Sector: Finance // Industry: Finance - Term-Lending Institutions

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Quarterly Results Standalone Figures in Rs. Crores / View Consolidated

Sep 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Mar 2018 Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019
5,957 5,646 5,849 5,627 5,602 5,632 5,940 6,317 7,286 7,254 6,672 6,986
235 109 668 1,039 358 838 1,345 587 993 1,344 888 313
Operating Profit 5,722 5,537 5,181 4,588 5,245 4,793 4,595 5,731 6,293 5,910 5,783 6,674
OPM % 96% 98% 89% 82% 94% 85% 77% 91% 86% 81% 87% 96%
Other Income 152 311 133 1 1 6 8 2 13 4 14 3
Interest 3,426 3,373 3,425 3,187 3,250 3,291 3,618 3,620 3,779 4,082 4,161 4,573
Depreciation 1 1 1 1 1 1 2 2 2 2 2 2
Profit before tax 2,447 2,474 1,887 1,401 1,994 1,506 983 2,111 2,525 1,830 1,634 2,102
Tax % 28% 29% 30% 23% 29% 27% 15% 30% 30% 30% 23% 29%
Net Profit 1,751 1,754 1,319 1,076 1,408 1,097 839 1,469 1,764 1,275 1,256 1,501
EPS in Rs 8.87 8.88 6.68 5.45 7.13 6.56 4.25 7.44 8.93 6.45 6.36 7.60
Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes Notes

Profit & Loss Standalone Figures in Rs. Crores / View Consolidated

Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 TTM
3,536 4,882 6,659 8,378 10,503 13,595 17,115 20,384 23,752 23,753 22,461 25,318 28,198
160 123 160 165 334 347 547 1,110 1,422 1,454 3,240 1,591 3,538
Operating Profit 3,376 4,759 6,499 8,213 10,169 13,248 16,568 19,275 22,330 22,299 19,222 23,727 24,660
OPM % 95% 97% 98% 98% 97% 97% 97% 95% 94% 94% 86% 94% 87%
Other Income 2 50 49 117 6 3 6 4 4 17 5 22 34
Interest 2,064 2,887 3,896 4,851 6,379 8,084 10,038 11,845 14,283 13,450 13,337 15,642 16,594
Depreciation 1 1 2 3 3 4 4 7 5 5 6 7 8
Profit before tax 1,312 1,920 2,649 3,476 3,793 5,164 6,531 7,427 8,045 8,861 5,884 8,100 8,092
Tax % 34% 34% 24% 26% 26% 26% 28% 29% 30% 30% 25% 29%
Net Profit 860 1,272 2,001 2,570 2,817 3,818 4,684 5,260 5,628 6,246 4,420 5,764 5,796
EPS in Rs 4.76 7.03 9.62 12.40 13.65 18.66 22.91 25.56 27.29 31.63 22.38 29.18 29.34
Dividend Payout % 30% 30% 32% 29% 26% 21% 20% 20% 30% 31% 41% 38%
* Sales is net of excise duty and discounts
Compounded Sales Growth
10 Years:17.89%
5 Years:8.15%
3 Years:2.15%
TTM:20.03%
Compounded Profit Growth
10 Years:16.31%
5 Years:4.24%
3 Years:0.80%
TTM:20.44%
Stock Price CAGR
10 Years:2.54%
5 Years:-0.99%
3 Years:-1.32%
1 Year:25.30%
Return on Equity
10 Years:20.01%
5 Years:18.64%
3 Years:16.92%
Last Year:17.31%

Balance Sheet Standalone Figures in Rs. Crores / View Consolidated

Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
859 859 987 987 987 987 987 987 987 1,975 1,975 1,975
Reserves 4,509 5,331 10,093 11,801 13,576 16,467 19,682 23,870 27,630 31,351 30,328 32,328
Borrowings 34,283 44,936 55,948 70,040 90,056 107,791 126,240 151,024 169,106 167,517 204,439 244,321
3,299 4,842 2,519 3,689 3,932 5,267 5,956 7,307 8,642 8,423 5,013 19,713
Total Liabilities 42,949 55,968 69,548 86,517 108,551 130,512 152,865 183,188 206,367 209,266 241,755 298,337
70 57 67 65 70 71 72 74 119 121 128 162
CWIP 8 24 23 3 8 9 10 7 32 60 129 199
Investments 1,147 1,005 910 837 758 661 1,708 1,613 2,467 2,696 2,825 2,398
41,724 54,882 68,548 85,612 107,715 129,772 151,076 181,493 203,750 206,389 238,673 295,579
Total Assets 42,949 55,968 69,548 86,517 108,551 130,512 152,865 183,188 206,367 209,266 241,755 298,337

Cash Flows Standalone Figures in Rs. Crores / View Consolidated

Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
-6,203 -9,999 -12,695 -12,787 -15,825 -20,066 -17,283 -23,992 -13,205 6,794 -32,778 -36,013
32 137 95 78 140 148 139 245 -740 139 288 585
5,126 10,494 12,104 14,150 18,165 16,091 16,853 23,076 15,150 -4,173 28,236 35,559
Net Cash Flow -1,044 633 -496 1,442 2,480 -3,827 -291 -670 1,206 2,760 -4,254 131

Ratios Standalone Figures in Rs. Crores / View Consolidated

Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
ROCE % 9% 11% 11% 11% 11% 12% 12% 12% 12% 11% 9% 9%
Debtor Days 0 0 0 0 0 0 0 0 0 0 0 0
Inventory Turnover

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