FY2023-24: REC Q1 profit rises 21% to Rs 2,968 cr, net NPA drops to below 1%

New Delhi: REC Limited posted a nearly 21 percent rise in consolidated and standalone net profit in Q1 of FY 2023-24 in comparison to the corresponding quarter of the previous financial year. However, on quarter-on-quarter basis, standalone net profit declined by 1.33 percent and consolidated profit declined by 3.17 percent even though total standalone income for Q1 was higher at Rs 10,961.26 crore (standalone) and Rs 11,091.77 crore (consolidated). The standalone profit for Q1 stood at Rs 2,960.73 crore, while the consolidated net profit stood at Rs 2,968.05 crore.

REC’s net NPA goes down to 0.97%

The loan book of the Maharatna PSU grew by 17 percent in Q1 year-on-year to Rs 4.54 lakh crore. In Q1 of the previous financial year, the loan book stood at Rs 3.88 lakh crore. Signifying improving asset quality, the net Non-Performing Assets (NPA) reduced to 0.97 percent, with Provision Coverage Ratio of 70.46 percent. The Capital Adequacy Ratio of the PSU stood at a comfortable 27.60 percent.

REC’s net worth rises by 16% y-o-y to Rs 60,886 cr in Q1 FY2023-24

During the Q1 of FY23, REC has raised USD 750 million 5-year 144A/Reg-S Green Bonds under its Global Medium-Term Note Programme. These bonds are exclusively listed on IFSC International Stock Exchanges, India INX and NSE IFSC in Gift City, Gandhinagar, Gujarat.

The PSU’s net worth has grown by 16 percent in Q1 of FY 2023-24 year-on-year to Rs 60,886 cr.

REC declares interim dividend of Rs 3/share

On Wednesday, the REC board also approved the declaration of interim dividend at the rate of Rs 3 per equity share of Rs 10 each for 2023-24. The record date for the interim dividend is August 14, 2023 and it shall be paid/ dispatched on or before August 24. The board also approved a proposal for increasing the overall borrowing limit of the company from Rs 4,50,000 crore to Rs 6,00,000 crore and in any foreign currency equivalent from USD 16 billion to USD 20 billion.

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