REC Limited Reports Stellar Financial Performance: Record-Breaking 9-Month Profit of ₹10,003 Crores

REC Limited’s Board of Directors has given the green light to the unaudited standalone and consolidated financial results for the quarter and period concluding on December 31, 2023. The operational and financial highlights for Q3 FY24 compared to Q3 FY23 on a standalone basis showcase remarkable growth.

Sanctions have witnessed a substantial surge, reaching ₹1,32,049 crores, a staggering 177% increase from ₹47,712 crores in Q3 FY23, with the renewable sector contributing significantly at 57%. Disbursements also soared to ₹46,358 crores, marking a 56% uptick. The interest income on loan assets rose by 22%, reaching ₹11,812 crores, while the net profit registered a notable 14% growth, reaching ₹3,269 crores.

For the cumulative 9 months of FY24 versus 9M FY23 on a standalone basis, there was a 69% surge in sanctions, amounting to ₹3,25,941 crores, with the renewable sector accounting for 39%. Disbursements saw a remarkable 104% increase, reaching ₹1,22,089 crores. The interest income on loan assets rose by 18% to ₹33,490 crores, and the net profit witnessed a substantial growth of 24%, reaching ₹10,003 crores.

Owing to improved asset quality, increased lending rates, and effective finance cost management, REC achieved its highest-ever 9-month profit of ₹10,003 crores. The annualized Earnings Per Share (EPS) for the period ending December 31, 2023, accelerated to ₹50.65 per share, up from ₹40.79 per share as of December 31, 2022.

With profits fueling growth, REC’s Net Worth has grown to ₹64,787 crores as of December 31, 2023, reflecting an 18% YoY increase. The loan book maintained its upward trajectory, growing by 21% to ₹4.97 lakh crores from ₹4.11 lakh crores as of December 31, 2022. Noteworthy is the improvement in asset quality, with Net Credit-impaired assets decreasing to 0.82%, and a Provision Coverage Ratio of 70.41% on NPA assets as of December 31, 2023. The Capital Adequacy Ratio (CRAR) stands strong at 28.21%, indicating ample support for future growth opportunities.