REC posts its highest Q1 profit of INR 3,442 crore

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REC Ltd, a non-banking finance company under India’s Ministry of Power, has announced financial results for the first quarter ending June 30 of FY 2024-25. The company reported total income of INR 13,037 crore, up 19% compared to INR 10,981 crore in Q1 FY 2023-24. Revenue from operations stood at INR 13,023 crore, up 19% year-on-year. Net profit is 16% up YoY to INR 3,442 crore.

“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 INR 3,442 crore. As a result, the earnings per share (EPS) for the period ended June 30, 2024 accelerated by 16% to INR 13.07 per share as against INR 11.24 per share as on June 30, 2023,” stated REC.

REC’s loan book has increased by 17% on sustained basis to INR 5.30 lakh crore as against INR 4.54 lakh crores as at 30th June 2023. It sanctioned INR 1,12,791 crore in loans, up 24% YoY. Of the total amount, sanctions to renewable sector stood at INR 39,655 crore, up 59% YoY.

Loan disbursements rose 28% YoY to INR 43,652 crore. Of this, disbursements to renewables constituted major component with YoY increase of 249%.

Continuing with the tradition to reward its shareholders, the company’s Board of Directors has declared the interim dividend of INR 3.50 per equity share (on face value of INR 10 each).

 

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