On the COVID-19 impact, the company said the management is of the view that there are no reasons to believe the pandemic will have any significant impact on the ability of the firm to continue as a going concern.
State-owned REC Ltd on Friday posted a 22.28 percent increase in its consolidated net profit to Rs 1,845.30 crore in the quarter to June 2020, on account of higher revenues. Its consolidated net profit was Rs 1,509 crore in the same quarter a year ago, the company said in a BSE filing.
Total income rose to Rs 8,448.08 crore in the period under review from Rs 6,819.59 crore in the June quarter last year.
On the COVID-19 impact, the company said the management is of the view that there are no reasons to believe the pandemic will have any significant impact on the ability of the firm to continue as a going concern.
The government, as part of COVID-19 relief package, had announced liquidity injection into state discoms in the form of state government guaranteed loans through REC and PFC (Power Finance Corporation) to clear the outstanding dues of power generation and transmission companies.
The company has already sanctioned amounts of more than Rs 30,000 crores till July 31, 2020 as part of this liquidity package to discoms, it said.
Considering the relaxations allowed by the RBI, relief package for power sector by the government, the REC's liquidity position and access to diverse sources of funds, the company presently does not have any reasons to believe that the current crisis will have any significant impact on its ability to maintain operations, including its assessment of going concern, it said.
However, the company said "the impact will continue to be dependent on future developments, which are uncertain, including among other things, any new information concerning the severity of the COVID-19 pandemic and any further action by the government or the company to contain its spread or mitigate its impact".