The Board of Directors of REC Limited, today approved the limited reviewed standalone and consolidated financial results for the quarter ended 30th June 2024.
RECL
Operational and Financial Highlights: Q1 FY25 vs Q1 FY24 (Standalone)
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- Total sanctions: ₹ 1,12,791 crore vs. ₹ 90,797 crore, up 24%, of which sanctions to renewable sector: ₹ 39,655 crore vs. ₹ 24,985 crore, up 59%
- Disbursements: ₹ 43,652 crore vs. ₹ 34,133 crore, up 28%, of which disbursements to renewables constituted major component with YoY increase of 249%
- Revenue from operations: ₹ 13,023 crore vs. ₹ 10,976 crores, up 19%
- Total income: ₹ 13,037 crore vs. ₹ 10,981 crores, up 19%
- Net interest income: ₹ 4,713 crore vs. ₹ 3,612 crore, up 30%
- Net Profit: ₹ 3,442 crore vs. ₹ 2,961 crore, up 16%
- Yield: 9.99% vs. 9.82%, up 17 bps
- Average cost of funds: 7.05% vs. 7.23%, reduction by 18 bps
- Spread: 2.94% vs. 2.59%, up 35 bps
- Net interest margin: 3.64% vs. 3.28%, up 36 bps
- Return on net worth: 19.51%
- Market capitalization: ₹ 1,38,348 crore vs. ₹ 43,356, up 219%
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.
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 30th June 2024.
Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has declared the interim dividend of ₹ 3.50 per equity share (on face value of ₹ 10/- each).
ABOUT REC LIMITED -
REC is a 'Maharatna' company under the administrative control of the Ministry of Power, Government of India, and is registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) 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, 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 provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country.
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 (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 PM Surya Ghar Muft Bijli Yojna from Central Government.
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