New Delhi: State-owned company REC Ltd on Saturday announced a 16% rise in net profit to ₹3,442 crore for the quarter ended June 30, 2024, as part of its first quarter financial results for the fiscal year 2025.
The company reported total sanctions growing by 24% to ₹1,12,791 crore from ₹90,797 crore in the corresponding quarter last year. Within this, sanctions to the renewable sector saw a substantial increase of 59% to ₹39,655 crore from ₹24,985 crore.
Disbursements during the quarter increased by 28% to ₹43,652 crore, with disbursements to renewables recording a year-on-year increase of 249%. Revenue from operations rose by 19% to ₹13,023 crore from ₹10,976 crore, with total income also up by 19% to ₹13,037 crore from ₹10,981 crore.
Net interest income for the quarter increased by 30% to ₹4,713 crore from ₹3,612 crore, alongside an increase in yield to 9.99% from 9.82%. The average cost of funds reduced by 18 basis points to 7.05% from 7.23%, while the spread increased by 35 basis points to 2.94%. Net interest margin improved by 36 basis points to 3.64%.
The company’s market capitalization experienced a significant increase of 219% to ₹1,38,348 crore from ₹43,356 crore.
“Due to growth in all verticals, resetting of interest rates on loan assets, and effective management of finance cost, REC is able to maintain its spreads and NIMs resulting in robust quarterly profit after tax of ₹3,442 crore,” the company said in a statement.
The loan book continued to expand, showing a 17% increase to ₹5.30 lakh crore from ₹4.54 lakh crore. Net credit-impaired assets improved to 0.82% from 0.97%, with a provision coverage ratio of 68.48% on NPA assets as of June 30, 2024.
The net worth of the company grew by 19% to ₹72,351 crore, with a capital adequacy ratio (CRAR) standing at 26.77%.
Following these results, the board of directors declared an interim dividend of ₹3.50 per equity share on a face value of ₹10 each.
