Team News Riveting
New Delhi, January 23
The Board of Directors of REC Limited today approved the unaudited standalone and consolidated financial results for the quarter & period ended 31st December 2023.
Operational and Financial Highlights: Q3 FY24 vs Q3 FY23 (Standalone)
- Loan Sanctions: Rs 1,32,049 crores vs. Rs 47,712 crores, up 177 per cent, Renewable sector constitutes 57 per cent
- Disbursements: Rs 46,358 crores vs. Rs 29,639 crores, up 56 per cent
- Interest Income on Loan Assets: Rs 11,812 crores vs. Rs 9,660 crores, up 22 per cent
- Net Profit: Rs 3,269 crores vs. Rs 2,878 crores, up 14 per cent
Operational and Financial Highlights: 9M FY24 vs 9M FY23 (Standalone)
- Loan Sanctions: Rs 3,25,941 crores vs. Rs 1,92,496 crores, up 69 per cent, Renewable sector constitutes 39 per cent
- Disbursements: Rs 1,22,089 crores vs. Rs 59,907 crores, up 104 per cent
- Interest Income on Loan Assets: Rs 33,490 crores vs. Rs 28,456 crores, up 18 per cent
- Net Profit: Rs 10,003 crores vs. Rs 8,054 crores, up 24 per cent
Owing to the improving asset quality, increase in lending rates and effective management of Financing Cost, REC is able to record its highest ever 9M profit of Rs 10,003 crores. As a result, the annualised Earnings Per Share (EPS) for the period ended 31st December 2023 accelerated to Rs 50.65 per share as against Rs 40.79 per share as at 31st December 2022.
Aided by growth in profits, the Net Worth has grown to Rs 64,787 crores as on 31st December 2023, an increase of 18 per cent YoY.
The loan book has maintained its growth trajectory and has increased by 21 per cent to Rs 4.97 lakh crore as against Rs 4.11 lakh crores as at 31st December 2022. Signifying improving asset quality, the Net Credit-impaired assets have reduced to 0.82 per cent from 1.12 per cent as at 31st December 2022 with Provision Coverage Ratio of 70.41 per cent on NPA assets, as at 31st December 2023.
Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 28.21 per cent as on 31st December 2023.
About REC Limited:
REC is a ‘Maharatna’ Central Public Sector Enterprise under the Ministry of Power, and is registered with RBI as Non-Banking Finance Company (NBFC), and Infrastructure Financing Company (IFC). REC is financing the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pumped Storage projects, Green Hydrogen and Green Ammonia projects. More recently, REC 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 and Refinery. REC Ltd. provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country. REC Ltd. 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 (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last mile distribution system, 100% village electrification and household electrification in the country. REC has also been made the nodal agency for certain States and Union Territories for the Revamped Distribution Sector Scheme (RDSS). REC has also been given the responsibility of Pradhan Mantri Suryodaya Yojana from Central Government. The loan book of REC stands at Rs 4.74 Lakh Crore and Net Worth at Rs. 63,117 crores on 30 September, 2023.
