REC limited, a ‘Maharatna’ company has reported its unaudited financial results (Standalone) for the 2nd Quarter and Half Year ended 30th September 2023.
Key highlights are as under:
Operational and Financial Highlights –Q2 FY24 vs Q2 FY23 (Standalone)
- Sanctions: ₹ 1,04,366 crore vs. ₹ 84,889 crore, up 23%, Renewable sector constitutes for 24%
- Disbursements: ₹ 41,598 crore vs. ₹ 17,827 crore, up 133%
- Interest Income on Loan Assets: ₹ 11,213 crore vs. ₹ 9,534 crore, up 18%
- Net Profit: ₹ 3,773 crore vs. ₹ 2,728 crore, up 38%
- Total Comprehensive Income: ₹ 4,188 crore vs. ₹ 1,915 crore, up 119%
Operational and Financial Highlights –H1 FY24 vs H1 FY23 (Standalone)
- Sanctions: ₹ 1,95,163 crore vs. ₹ 1,44,784 crore, up 35%, Renewable sector constitutes for 26%
- Disbursements: ₹ 75,731 crore vs. ₹ 30,269 crore, up 150%
- Interest Income on Loan Assets: ₹ 21,678 crore vs. ₹ 18,796 crore, up 15%
- Net Profit: ₹ 6,734 crore vs. ₹ 5,176 crore, up 30%
- Total Comprehensive Income: ₹ 7,331 crore vs. ₹ 3,690 crore, up 99%
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 ₹ 3,773 crore. As a result, the annualised Earnings Per Share for the quarter ended 30th September 2023 accelerated to ₹ 51.14 per share as against ₹ 39.32 per share as at 30th September 2022. Aided by growth in profits, the Net Worth has grown to ₹ 63,117 crore as on 30th September 2023, an increase of 18% YoY.
The loan book has maintained its growth trajectory and has increased by 20% to ₹ 4.74 lakh crore as against ₹ 3.94 lakh crore as at 30th September 2022. Signifying improving asset quality, the Net Credit-impaired assets have reduced to 0.96% with Provision Coverage Ratio of 69.37% on NPA assets, as at 30th September 2023. Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 28.53% as on 30th September 2023.
Board of Directors of the Company has declared the second interim dividend of ₹3.50 per equity share (on face value of ₹ 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 ₹6.50 per equity share (on face value of ₹ 10/- each)
REC Limited has also diversified into infrastructure and Logistics sector in a major way, ever since it became a Maharatna company in September 2022. Recently, for implementation of various infrastructure projects, REC has signed MOU with Punjab National Bank for ₹55,000 crore, signed MOU with Bank of India for ₹30,000 crore and also signed MOU with SJVN for ₹50,000 Crore for setting up power generation projects based on conventional and renewable sources of energy.
REC Limited, a Maharatna company, has emerged as a frontrunner in catalyzing India’s energy transition in alignment with the nation’s COP26 commitments and recent G20 pledges.