REC limited, a ‘Maharatna’ company under the administrative control of the Ministry of Power, Government of India, and registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC), has today reported its unaudited financial results (Standalone) for the 2nd Quarter and Half Year ended 30th September 2023.
REC recorded its highest ever quarterly net profit of Rs 3,773 crore in September quarter of FY24 compared to Rs 2,728 crore in Q2 FY23, an increase of 38 per cent. Its total comprehensive income jumped 119 per cent to Rs 4,188 crore in Q2 FY24 against Rs 1,915 crore in same period in previous fiscal.
The company sanctioned Rs 1,04,366 crore in Q2 FY24, against Rs 84,889 crore in same period in previous fiscal, which is an increase of 23 per cent. Renewable sector constituted for about 24 per cent of the sanctioned amount.
Total Loan disbursements jumped 133 per cent to Rs 41,598 crore in Q2 FY24 against Rs 17,827 crore in same period last fiscal. Interest income on loan assets increased 18 per cent to Rs 11,213 crore in Q2 FY24 compared to Rs 9,534 crore in Q2 FY23.
For H1 (April to September) FY24 the company reported net profit of Rs 6,734 crore against Rs 5,176 crore in H1 FY23, an increase of 30 per cent. Its total comprehensive income jumped 99 per cent to Rs 7,331 crore in H1 FY24 against Rs 3,690 crore in same period in previous fiscal.
The company sanctioned Rs 1,95,163 crore in FY24 first half compared to Rs 1,44,784 crore in H1 FY23, an increase of 35 per cent. Renewable sector constituted for about 26 per cent of the sanctioned amount.
Total Loan disbursements jumped 150 per cent to Rs 75,731 crore in H1 FY24 against Rs 30,269 crore in same period last fiscal. Interest income on loan assets increased 15 per cent to Rs 21,678 crore in H1 FY24 compared to Rs 18,796 crore in H1 FY23.
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 Rs 3,773 crore. As a result, the annualised Earnings Per Share for the quarter ended September 30, 2023 accelerated to Rs 51.14 per share as against Rs 39.32 per share as at 30th September 2022.
Aided by growth in profits, the Net Worth has grown to Rs 63,117 crore as on September 30, 2023, an increase of 18 per cent YoY.
The loan book has maintained its growth trajectory and has increased by 20 per cent to Rs 4.74 lakh crore as against Rs 3.94 lakh crore as at September 30, 2022. Signifying improving asset quality, the Net Credit-impaired assets have reduced to 0.96 per cent with Provision Coverage Ratio of 69.37 per cent on NPA assets, as at September 30, 2023.
Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 28.53 per cent as on 3September 30, 2023.
Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has declared the second interim dividend of Rs3.50 per equity share (on face value of Rs 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 Rs6.50 per equity share (on face value of Rs 10/- each).