Team News Riveting
Mumbai, November1
The REC Limited’s net profit jumped to Rs 3773 crore during the second quarter (Q2) of the financial year 2023-24 (FY24).
During the corresponding period in the last financial year, the net profit stood at Rs 2728 crore. The net profit posted in the Q2 in FY24 is 38 per cent higher year-on-year (YoY). The company spokesperson said it was the highest ever quarterly profit reported by the REC Limited.
The Board of Directors of REC Limited Wednesday approved the unaudited standalone and consolidated financial results for the quarter and period ended 30th September 2023 at a meeting held today. The results include:
Operational and Financial Highlights –Q2 FY24 vs Q2 FY23 (Standalone)
Sanctions: Rs 1,04,366 crore vs. Rs 84,889 crore, up 23 per cent, Renewable sector constitutes for 24 per cent
Disbursements: Rs 41,598 crore vs. Rs 17,827 crore, up 133 per cent
Interest Income on Loan Assets: Rs 11,213 crore vs. Rs 9,534 crore, up 18 per cent
Net Profit: Rs 3,773 crore vs. Rs 2,728 crore, up 38 per cent
Total Comprehensive Income: Rs 4,188 crore vs. Rs 1,915 crore, up 119 per cent
Operational and Financial Highlights –H1 FY24 vs H1 FY23 (Standalone)
Sanctions: Rs 1,95,163 crore vs. Rs 1,44,784 crore, up 35 per cent, Renewable sector constitutes for 26 per cent
Disbursements: Rs 75,731 crore vs. Rs 30,269 crore, up 150 per cent
Interest Income on Loan Assets: Rs 21,678 crore vs. Rs 18,796 crore, up 15 per cent
Net Profit: Rs 6,734 crore vs. Rs 5,176 crore, up 30 per cent
Total Comprehensive Income: Rs 7,331 crore vs. Rs 3,690 crore, up 99 per cent
The REC Limited, in a statement said, owing to the improving asset quality, increase in lending rates and effective management of Finance Cost, REC is able to record its highest ever quarterly profit of Rs 3,773 crore. As a result, the annualised Earnings Per Share for the quarter ended 30th September 2023 accelerated to Rs 51.14 per share as against Rs 39.32 per share as at 30th September 2022. Aided by growth in profits, the Net Worth has grown to Rs 63,117 crore as on 30th September 2023, an increase of 18 per cent YoY.
The loan book has maintained its growth trajectory and has increased by 20 per cent to Rs 4.74 lakh crore as against Rs 3.94 lakh crore as at 30th September 2022. Signifying improving asset quality, the Net Credit-impaired assets have reduced to 0.96 per cent with Provision Coverage Ratio of 69.37 per cent on NPA assets, as at 30th September 2023.
Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 28.53 per cent as on 30th September 2023.
Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has declared the second interim dividend of Rs 3.50 per equity share (on face value of Rs 10/- each) and 13th November 2023 has been fixed as Record Date for payment of Second Interim Dividend. The Total Interim Dividend for the FY 23-24 is Rs 6.50 per equity share (on face value of Rs 10/- each)
REC Limited, a Maharatna CPSE established in 1969, under the Ministry of Power, provides long-term loans and other finance products for the Power-Infrastructure sector comprising of Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Green Hydrogen etc. REC has also diversified into the core infrastructure sector comprising Roads, Metro, Airports, IT, Ports, etc. The Loan Book of REC stands at Rs 4.54 Lakh Crore, ending the first quarter of the current financial year.
