New Delhi: Maharatna power PSU REC Limited on Tuesday posted about a 13.5 percent rise in its consolidated net profit to Rs 3,308.42 crore for the December 2023 quarter, mainly on the back of higher revenues. Its consolidated net profit was Rs 2,915.33 crore in the quarter ended December 2022, a BSE filing showed.
The total income rose to Rs 12,071.54 crore in the quarter from Rs 9,795.47 crore in the same period a year ago. Aided by growth in profits, REC's net worth has grown to Rs 64,787 crores as on December 31, 2023, an increase of 18 percent y-o-y.
REC's sanctions saw a growth of 177 percent at Rs 1,32,049 crores in Q3 of FY24 versus Rs 47,712 crores in the corresponding quarter of the previous fiscal year. Renewable sector constitutes 57 percent of these sanctions, which signifies that REC's loan portfolio, nearly 40 percent of which currently constitutes power distribution and conventional power generation segments, will see the share of RE increase as disbursements take place.
Disbursements in Q3 of FY24 stood at Rs 46,358 crores versus Rs 29,639 crores, up 56 percent year-on-year. Interest Income on loan assets was Rs 11,812 crores in comparison to Rs 9,660 crores, up 22 percent.
"The loan book has maintained its growth trajectory and has increased by 21 percent to Rs 4.97 lakh crore as against Rs 4.11 lakh crores as on December 31, 2022. Signifying improving asset quality, the Net Credit-impaired assets have reduced to 0.82 percent from 1.12 percent as on December 31, 2022 with Provision Coverage Ratio of 70.41 percent on NPA assets, as on December 31, 2023," said REC.
The board, in its meeting on Tuesday, also approved the incorporation of a project-specific special purpose vehicle as a wholly-owned subsidiary of REC Power Development & Consultancy Limited (a wholly-owned subsidiary of REC Ltd) for the selection of a successful bidder as Transmission Service Provider (TSP) for Eastern Region Expansion Scheme- XXXIX project allocated by the Ministry of Power through tariff based competitive bidding process.
Besides, it also approved the sale and transfer of the entire shareholding of six subsidiaries (power transmission projects), presently held by REC Power Development and Consultancy Limited (RECPDCL) to the successful bidders selected through tariff-based competitive bidding process.
RECPDCL is a nodal agency for conducting tariff-based bidding of power transmission projects in the country.
These six projects are Dhule Power Transmission Ltd, Bidar Transmission Ltd, Siker Khetri Transmission Ltd, Pachora Power Transmission Ltd, Karera Power Transmission Ltd and Ishanagar Power Transmission Ltd.