Company has declared the 3rd interim dividend of Rs 4.30 per equity share
Team News Riveting
New Delhi, February 6
REC Ltd on Thursday posted a 23 per cent year-on-year (Y-o-Y) rise in consolidated net profit to Rs 4,076.35 crore in the third quarter ended December 31, 2024.
The Board of Directors of REC Limited, today approved the limited reviewed standalone and consolidated financial results for the period ended December 31, 2024.
The higher income powered the company’s outstanding performance. It had posted a net profit of Rs 3,308.42 crore in the October-December period of 2023-24 financial year, the company said in a regulatory filing. The total income rose to Rs 14,286.91 crore in the reporting quarter from Rs 12,071.54 crore in the year-ago period.
Total expenses stood at Rs 9,105.94 crore in the latest December quarter as against Rs 7,899.85 crore a year earlier.
It further approved formation of a joint venture between REC Power Development and Consultancy Limited (a wholly-owned subsidiary of REC) and Mahagenco Renewable Energy Limited in the shareholding ratio of 50:50 for the development of renewable energy and other power projects. The proposal remains subject to requisite clearances, concurrences, approvals of statutory and administrative authorities, wherever required.
Operational and Financial Highlights: Q3 FY25 vs Q3 FY24 (Standalone)
– Net Profit: Rs 4,029 crore Vs Rs 3,269 crore, up by 23%
– Net interest income: Rs 4,930 crore Vs Rs 4,153 crore, up by 19%
– Net credit-impaired assets reduced to 0.74% from 0.82%
– Revenue from operations: Rs 14,157 crore Vs Rs 11,982 crore, up by 18%
– Disbursements: Rs 54,692 crore Vs Rs 46,358 crore, up by 18%
– Total income: Rs 14,173 crore Vs Rs 12,000 crore, up by 18%
– Average cost of funds: 7.18% Vs 7.28%, reduction by 10 bps
– Spread: 2.95% Vs 2.85%, up by 10 bps
– Net interest margin: 3.66% Vs 3.61%, up by 5 bps
Operational and Financial Highlights: 9M FY25 vs 9M FY24 (Standalone)
– Net Profit: Rs 11,477 crore Vs Rs 10,003 crore, up by 15%
– Net interest income: Rs 14,191 crore Vs Rs 11,422 crore, up by 24%
– Revenue from operations: Rs 40,752 crore Vs Rs 34,533 crore, up by 18%
– Disbursements: Rs 1,45,647 crore Vs Rs 1,22,089 crore, up by 19%, of which disbursements to renewables constituted:
Rs 17,612 crore Vs Rs 9,858 crore, i.e. with YoY increase of 79%
– Total income: Rs 40,805 crore Vs Rs 34,571 crore, up by18%
– Spread: 2.94% Vs 2.82%, up by 12 bps
– Net interest margin: 3.64% Vs 3.52%, up by 12 bps
– Return on net worth: 21.07%
– Market capitalization: Rs 1,31,844 crore Vs Rs 1,08,712 crore, up by 21%
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 profit after tax of Rs 11,477 crore for the period ending December 31, 2024. As a result, the Earnings Per Share (EPS) for the period ended December 31, 2024 accelerated to Rs 58.11 (Annualized) per share as against Rs 50.65 per share as at December 31, 2023.
The loan book i.e. Asset Under Management (AUM) has maintained its growth trajectory and has increased on sustained basis to Rs 5.65 lakh crore as against Rs 4.97 lakh crore as at December 31, 2023.
Aided by growth in profits, the Net Worth has grown to Rs 76,502 crore as on December 31, 2024, as compared to Rs 64,787 crore as on December 31, 2023 registering an increase of 18% YoY.
Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 25.33% as at December 31, 2024.
Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has declared the 3rd interim dividend of Rs 4.30 per equity share (on face value of Rs 10/- each).
