REC Limited Achieves Record Q2 2023 Profit, Reports A Substantial Increase In Earnings Per Share


REC Limited, a prestigious ‘Maharatna’ company under the Ministry of Power, Government of India, and recognized by the RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC), has unveiled its unaudited financial results for the second quarter and half-year ending September 30, 2023. CMD Vivek Kumar Dewangan presented the key highlights at a press conference in Mumbai, accompanied by top executives, including Director (Projects) Vijay Kumar Singh, Director (Finance) Ajoy Choudhary, and others.


The company reported its highest-ever quarterly profit, amounting to ₹3,773 crore, attributed to improving asset quality, lending rate hikes, and efficient financial management. This impressive performance led to an annualized Earnings Per Share of ₹51.14 for the quarter, a substantial increase from ₹39.32 recorded in the corresponding period last year.


REC’s Net Worth has grown to ₹63,117 crore, reflecting an 18% year-on-year increase. The company’s loan book has maintained steady growth, expanding by 20% to ₹4.74 lakh crore compared to ₹3.94 lakh crore as of September 30, 2022. The firm’s commitment to asset quality is evident, with Net Credit-impaired assets reduced to 0.96% and a robust Provision Coverage Ratio of 69.37% on NPA assets as of September 30, 2023.

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Maintaining a strong capital position, REC boasts a comfortable Capital Adequacy Ratio (CRAR) of 28.53% as of September 30, 2023.

Continuing its tradition of rewarding shareholders, the Board of Directors declared a second interim dividend of ₹3.50 per equity share, with November 13, 2023, set as the Record Date for payment. This brings the total interim dividend for the fiscal year 2023-24 to ₹6.50 per equity share.

In addition to its remarkable financial performance, REC Limited has made significant strides in diversifying into the infrastructure and logistics sectors since achieving ‘Maharatna’ status in September 2022. Recent Memorandums of Understanding (MoUs) with Punjab National Bank for ₹55,000 crore, Bank of India for ₹30,000 crore, and SJVN for ₹50,000 crore signify REC’s commitment to infrastructure projects and power generation from conventional and renewable sources.

As a Maharatna company, REC Limited is a frontrunner in catalyzing India’s energy transition, aligning with COP26 commitments and G20 pledges. The company is on a trajectory to achieve a green finance loan book of ₹3 lakh crore by 2030. REC’s commitment to green finance and sustainable energy reinforces its pivotal role in India’s energy transition and economic development, as it collaborates with key stakeholders to foster a cleaner and more eco-friendly energy landscape.

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