Q2 FY'24: REC records its highest-ever quarterly profit of Rs 3,773 crore

New Delhi: REC Limited on Wednesday posted a nearly 39 percent rise in its consolidated net profit to Rs 3,789.90 crore in the September quarter compared to the year-ago period mainly on the back of higher revenues.

Consolidated net profit stood at Rs 2,732.12 crore in the quarter ended on September 30, 2022, a BSE filing showed.

Total income rose to Rs 11,701.26 crore in the quarter from Rs 9,964.00 crore in the same period a year ago.

The board also approved the second interim dividend of Rs 3.50 per equity share of Rs 10 each for 2023-24. The record date for the interim dividend is Monday, November 13, 2023.

The interim dividend shall be paid on or before November 30, 2023. The total interim dividend for the 2023-24 is Rs 6.50 per equity share (on face value of Rs 10 each).

In a separate statement, the company stated, "Owing to the improving asset quality, increase in lending rates and effective management of finance cost, the REC is able to record its highest ever (standalone) quarterly profit of Rs 3,773 crore.

The annualised earnings per share for the quarter ended 30th September 2023 accelerated to Rs 51.14 per share as against Rs 39.32 per share as of 30th September 2022.

The net worth has grown to Rs 63,117 crore as of 30th September 2023, an increase of 18 percent YoY (year on year).

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 of 30th September 2022, it informed.

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 (bad loans) assets, as at 30th September 2023.

Indicating ample opportunity to support future growth, the capital adequacy ratio of the company stands at a comfortable 28.53 percent as of 30th September 2023.

REC has also diversified into the infrastructure and logistics sector in a major way, ever since it became a Maharatna company in September 2022.

Recently, for the implementation of various infrastructure projects, REC has signed an MOU ( initial pact) with Punjab National Bank for Rs 55,000 crore, signed an MOU with Bank of India for Rs 30,000 crore and also signed an MOU with SJVN for Rs 50,000 crore for setting up power generation projects based on conventional and renewable sources of energy.

The REC is on a trajectory to achieve a green finance loan book of Rs 3 lakh crore by the fiscal year 2030.

On the sidelines of the G20 Summit (held in September), REC held one-on-one discussions with RE Developers leading to successful signing of memoranda of understanding amounting to a total of around Rs 2.86 lakh crore.

REC Ltd under the Ministry of Power, provides long-term loans and other finance products for the power-infrastructure sector, renewable energy and new technologies like electric vehicles, battery storage, green hydrogen etc.

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