The Business Bytes
New Delhi, April 30, 2024 (TBB Bureau): REC, a leading government-owned financial institution, announced a robust 34% increase in net profit for the January-March quarter of the fiscal year 2023-24. The company’s net profit soared to Rs 4,016 crore, compared to Rs 3,001 crore during the same period in the previous year.
The revenue from operations also witnessed a substantial uptick, rising by 25% to Rs 12,613 crore from Rs 10,113 crore in the corresponding period last year. REC’s net interest income for the quarter surged by 29% to Rs 4,407 crore.
In light of its stellar performance, REC has declared a final dividend of Rs 5 per equity share. With this, the total dividend for the fiscal year 2023-24 stands at Rs 16 per equity share.
REC attributed its record-breaking profits to the improving asset quality, effective resolution of stressed assets, and prudent management of finance costs. The company’s annual profit after tax reached an all-time high of Rs 14,019 crore.
Reflecting this growth, the Earnings Per Share (EPS) for the fiscal year ended on March 31, 2024, surged by 27% to Rs 53.11 per share, up from Rs 41.85 per share as of March 31, 2023.
REC’s net worth has witnessed a significant increase, reaching Rs 68,783 crores as of March 31, 2024, marking a 19% year-on-year growth fueled by rising profits. Additionally, the loan book has maintained its upward trajectory, expanding by 17% to Rs 5.09 lakh crores from Rs 4.35 lakh crores as of March 31, 2023.
The institution’s focus on improving asset quality is evident from the reduction in net credit-impaired assets, which declined to 0.86% as of March 31, 2024, from 1.01% as of March 31, 2023. REC’s provision coverage ratio on NPA assets stands at 68.45% as of March 31, 2024.
Furthermore, REC witnessed a substantial increase in total loans sanctioned during the fiscal year 2023-24, surging by 34% to Rs 3,58,816 crore from Rs 2,68,461 crore in the previous year. Notably, the institution’s sanctions to the renewable energy sector recorded an exceptional growth of 533%, reaching Rs 1,36,516 crore from Rs 21,554 crore.
REC’s impressive financial performance underscores its pivotal role in financing India’s infrastructure development and renewable energy initiatives, positioning itself as a key player in the country’s economic growth trajectory.
