REC Limited's unprecedented success in Q1 FY24
The Board of Directors of REC Limited on July 26 approved the unaudited standalone and consolidated financial results for the quarter ended 30th June 2023.
![REC Limited's unprecedented success in Q1 FY24](https://www.psuconnect.in/sdsdsd/REC_Limited_Q1_FY24.jpg)
New Delhi: REC Limited experienced unprecedented success, as it attained a record-breaking first-quarter profit of Rs 2,961 crores.
The Board of Directors of REC Limited on July 26 approved the unaudited standalone and consolidated financial results for the quarter ended 30th June 2023.
Operational and Financial Highlights –Q1 FY24 vs Q1 FY23 (Standalone)
- Sanctions: Rs 90,797 crores vs. Rs 59,895 crores, up 52%, Renewable sector constitutes 16%
- Disbursements: Rs 34,133 crores vs. Rs 12,442 crores, up 174%
- Interest Income on Loan Assets: Rs 10,465 crores vs. Rs 9,262 crores, up 13%
- Net Profit: Rs 2,961 crores vs. Rs 2,447 crores, up 21%
Owing to the improving asset quality and effective cost management, REC is able to record its quarterly profit at Rs 2,961 crores. As a result, the annualised Earnings Per Share for the quarter ended 30th June 2023 stands at Rs 44.96 per share as against Rs 37.16 per share as at 30th June 2022.
Aided by growth in profits, the Net Worth has grown to Rs 60,886 crores as on 30th June 2023, an increase of 16% YoY.
During Q1 FY24, Company raised USD 750 million for 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, Gujarat
Read Also : RBI issues guidelines on higher liquidity coverage ratio for retail depositsThe loan book has maintained its growth trajectory and has increased by 17% to Rs 4.54 lakh crore as against Rs 3.88 lakh crore as of 30th June 2022. Signifying improving asset quality, the Net Credit-impaired assets have reduced to 0.97% with a Provision Coverage Ratio of 70.46% on NPA assets, as on 30th June 2023.
Indicating the ample opportunity to support future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 27.60% as on 30th June 2023.
Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has declared the first interim dividend of Rs 3/- per equity share (on face value of Rs 10/- each) and 14th August 2023 has been fixed as Record Date for payment of Interim Dividend.
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