New Delhi: REC Limited, a ‘Maharatna’ Central Public Sector Enterprise under the ministry of power, has recorded a 14% increase in its standalone net profit for the third quarter of FY24, reaching ₹3,269 crore, up from ₹2,878 crore in the same period last year.
The financial results, announced today for the quarter ending 31st December 2023, also revealed a significant surge in loan sanctions, which soared by 177% to ₹1,32,049 crore, compared to ₹47,712 crore in Q3 FY23. The renewable sector contributed 57% to this substantial growth.
In the disbursement category, REC Limited registered a 56% increase, disbursing ₹46,358 crores against ₹29,639 crores in the corresponding quarter last year. The interest income on loan assets grew by 22%, amounting to ₹11,812 crores as opposed to ₹9,660 crores in Q3 FY23.
The first nine months of FY24 also saw robust growth for REC. Loan sanctions rose by 69%, reaching ₹3,25,941 crore, with the renewable sector accounting for 39%. Disbursements doubled, marking a 104% increase to ₹1,22,089 crore. Interest income on loan assets for this period went up by 18% to ₹33,490 crore, and net profit witnessed a 24% rise, amounting to ₹10,003 crore.
Highlighting the company’s financial health, the annualised earnings per share (EPS) escalated to ₹50.65 per share as of 31st December 2023, from ₹40.79 per share in the previous year. REC’s net worth also observed an 18% year-over-year increase, standing at ₹64,787 crore.
The loan book maintained a positive growth trajectory, increasing by 21% to ₹4.97 lakh crore, while the net credit-impaired assets reduced to 0.82%. The capital adequacy ratio (CRAR) of REC stands comfortably at 28.21%.
