REC declares Highest Ever QR1 Profits at Rs. 3442 Cr and offers Interim Div Rs. 3.50 per share
Aided by growth in profits, the company’s Net Worth has grown to ₹ 72,351 crores as on 30th June 2024, registering an increase of 19% YoY.
New Delhi: The Power sector Maharatna enterprise REC Ltd. declared its financial results for Qr.1 of year 2024-25 and posted a highest ever profit of Rs. 3,442 crores and awarded shareholders with interim dividend of Rs 3.50 per share. Board of Directors of the company today approved the limited reviewed standalone and consolidated financial results for the quarter ending June 30 according to a company Press release. 
Announciing the operational and financial results for Q1FY25 , the company’s performance has seen 24% rise in sanctions and investments with standalone figures at Rs. 112,791 crores against Rs. 90,797 cr. The sanctions in renewable energy sector soared from Rs. 24,985 crores to Rs. 39,655 crores.
Owing to growth in all the verticals, resetting of interest rates on loan assets and effective management of Finance Cost, REC is able to maintain its spreads and NIMs resulting in robust quarterly profit after tax of ₹ 3,442 crore. As a result, the Earnings Per Share (EPS) for the period ended 30th June 2024 accelerated by 16% to ₹ 13.07 per share as against ₹ 11.24 per share as at 30th June 2023.
Aided by growth in profits, the Net Worth has grown to ₹ 72,351 crores as on 30th June 2024, registering an increase of 19% YoY.
The other results are:
- Disbursements: ₹ 43,652 crore vs. ₹ 34,133 crore, up 28%, of which disbursements to renewables constituted major component with YoY increase of 249%
2. Revenue from operations: ₹ 13,023 crore vs. ₹ 10,976 crores, up 19%
3. Total income: ₹ 13,037 crore vs. ₹ 10,981 crores, up 19%
4. Net interest income: ₹ 4,713 crore vs. ₹ 3,612 crore, up 30%
5. Net Profit: ₹ 3,442 crore vs. ₹ 2,961 crore, up 16%
6. Yield: 9.99% vs. 9.82%, up 17 bps
7. Average cost of funds: 7.05% vs. 7.23%, reduction by 18 bps
8. Spread: 2.94% vs. 2.59%, up 35 bps
9. Net interest margin: 3.64% vs. 3.28%, up 36 bps
10. Return on net worth: 19.51%
11. Market capitalization: ₹ 1,38,348 crore vs. ₹ 43,356, up 219%
The loan book has maintained its growth trajectory and has increased by 17% on sustained basis to ₹ 5.30 lakh crore as against ₹ 4.54 lakh crores as at 30th June 2023. The net credit-impaired assets as at 30th June 2024 have reduced to 0.82% from 0.97% as at 30th June 2023 with Provision Coverage Ratio of 68.48% on NPA assets, as at 30th June 2024. Aided by growth in profits, the Net Worth has grown to ₹ 72,351 crores as on 30th June 2024, registering an increase of 19% YoY.
Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 26.77% as at June 30, 2024.
Continuing with the tradition to reward the shareholders, CMD Vivek Kumar Devangan declared an interim dividend of ₹ 3.50 per equity share (face value of ₹ 10/- each), on the recommendation of Board of Directors of the PSU Maharatna. company.
REC a ‘Maharatna’ company under Ministry of Power, Government of India, and as Non-Banking Finance Company, Public Financial Institution and Infrastructure Financing Company. REC is financing the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pump Storage projects, Green Hydrogen, Green Ammonia projects etc. More recently REC Limited has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc.
REC Limited continues to play a key strategic role in the flagship schemes of the Government for the power sector and has been nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana according to a company press note.
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