REC Limited declares Q2 FY 2024 Results

The Key highlights were briefed by CMD, REC Ltd. Vivek Kumar Dewangan in a press conference in Mumbai today.

REC Limited declares Q2 FY 2024 Results

New Delhi: REC Limited, a ‘Maharatna’ company under the administrative control of the Ministry of Power, Government of India, and registered with RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC), has today reported its unaudited financial results (Standalone) for the 2nd Quarter and Half Year ended 30th September 2023.

The Key highlights were briefed by CMD, REC Ltd. Vivek Kumar Dewangan in a press conference in Mumbai today. The Director (Projects) Vijay Kumar Singh, Director (Finance) Ajoy Choudhary, Executive Director (Finance) Sanjay Kumar, Executive Director and Company Secretary JS Amitabh, and Executive Director TSC Bosh were also present on the occasion.

The key highlights are as under:

Operational and Financial Highlights –Q2 FY24 vs Q2 FY23 (Standalone)

  • Sanctions: Rs 1,04,366 crore vs. Rs 84,889 crore, up 23%, Renewable sector constitutes for 24%
  • Disbursements: Rs 41,598 crore vs. Rs 17,827 crore, up 133%
  • Interest Income on Loan Assets: Rs 11,213 crore vs. Rs 9,534 crore, up 18%
  • Net Profit: Rs 3,773 crore vs. Rs 2,728 crore, up 38%
  • Total Comprehensive Income: Rs 4,188 crore vs. Rs 1,915 crore, up 119%

Operational and Financial Highlights –H1 FY24 vs H1 FY23 (Standalone)

  • Sanctions: Rs 1,95,163 crore vs. Rs 1,44,784 crore, up 35%, Renewable sector constitutes for 26%
  • Disbursements: Rs 75,731 crore vs. Rs 30,269 crore, up 150%
  • Interest Income on Loan Assets: Rs 21,678 crore vs. Rs 18,796 crore, up 15%
  • Net Profit: Rs 6,734 crore vs. Rs 5,176 crore, up 30%
  • Total Comprehensive Income: Rs 7,331 crore vs. Rs 3,690 crore, up 99%

Owing to the improving asset quality, increase in lending rates, and effective management of Finance Cost, REC is able to record its highest-ever quarterly profit of Rs 3,773 crore. As a result, 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 at 30th September 2022.

Aided by growth in profits, the Net Worth has grown to Rs 63,117 crore as on 30th September 2023, an increase of 18% YoY. The loan book has maintained its growth trajectory and has increased by 20% to Rs 4.74 lakh crore as against Rs 3.94 lakh crore as at 30th September 2022. Signifying improving asset quality, the Net Credit-impaired assets have reduced to 0.96% with a Provision Coverage Ratio of 69.37% on NPA assets, as at 30th September 2023.

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Indicating ample opportunity to support future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 28.53% as on 30th September 2023.

Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has declared the second interim dividend of Rs 3.50 per equity share (on the face value of Rs 10/- each) and 13th November 2023 has been fixed as a Record Date for payment of Second Interim Dividend. The Total Interim Dividend for the FY 23-24 is Rs 6.50 per equity share (on the face value of Rs 10/- each)

REC Limited 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 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.

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REC Limited, a Maharatna company, has emerged as a frontrunner in catalyzing India's energy transition in alignment with the nation's COP26 commitments and recent G20 pledges. With a resolute vision and unwavering commitment, 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, REC held one-on-one discussions with RE Developers leading to the successful signing of Memorandums of Understanding (MoUs) amounting to a total of around Rs 2.86 Lakh crore.

REC’s dedication to fostering green finance initiatives and its pivotal role in India's energy transition reinforces its commitment to creating a sustainable and eco-friendly future. As India and the world strive towards a cleaner and greener energy landscape, REC stands as a beacon of growth and overall development of the economy of the country.

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