REC Surges Profit, up by 14% to 3,269 cr

New Delhi: REC Limited a 'Maharatna' Central Public Sector Enterprise on January 23 approved the unaudited standalone and consolidated financial results for the quarter & period ended 31st December 2023.

Key Performance Indicators (KPIs):

• 9-Month Profit: Rs 10,003 crore, up 24% YoY (highest ever)
• Loan Sanctions: Rs 3,25,941 crore, up 69% YoY (renewable sector: 39%)
• Disbursements: Rs 1,22,089 crore, up 104% YoY
• Interest Income: Rs 33,490 crore, up 18% YoY
• Earnings Per Share (EPS): Rs 50.65, up 24% YoY
• Net Worth: Rs 64,787 crore, up 18% YoY
• Loan Book: Rs 4.97 lakh crore, up 21% YoY
• Non-Performing Assets (NPA): 0.82% (down from 1.12%)
• Capital Adequacy Ratio (CAR): 28.21%

Operational and Financial Highlights: Q3 FY24 vs Q3 FY23 (Standalone)

Loan Sanctions: Rs 1,32,049 crores vs. Rs 47,712 crores, up 177%, Renewable sector constitutes 57%
Disbursements: Rs 46,358 crores vs. Rs 29,639 crores, up 56%
Interest Income on Loan Assets: Rs 11,812 crores vs. Rs 9,660 crores, up 22%
Net Profit: Rs 3,269 crores vs. Rs 2,878 crores, up 14%

Operational and Financial Highlights: 9M FY24 vs 9M FY23 (Standalone)

Loan Sanctions: Rs 3,25,941 crores vs. Rs 1,92,496 crores, up 69%, Renewable sector constitutes 39%
Disbursements: Rs 1,22,089 crores vs. Rs 59,907 crores, up 104%
Interest Income on Loan Assets: Rs 33,490 crores vs. Rs 28,456 crores, up 18%
Net Profit: Rs 10,003 crores vs. Rs 8,054 crores, up 24%

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Owing to the improving asset quality, increase in lending rates and effective management of Financing Costs, REC is able to record its highest ever 9M profit of Rs 10,003 crores. As a result, the annualised Earnings Per Share (EPS) for the period ended 31st December 2023 accelerated to Rs 50.65 per share as against Rs 40.79 per share as at 31st December 2022.

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Aided by growth in profits, the Net Worth has grown to Rs 64,787 crores as on 31st December 2023, an increase of 18% YoY.

The loan book has maintained its growth trajectory and has increased by 21% to Rs 4.97 lakh crore as against Rs 4.11 lakh crores as at 31st December 2022. Signifying improving asset quality, the Net Credit-impaired assets have reduced to 0.82% from 1.12% as at 31st December 2022 with Provision Coverage Ratio of 70.41% on NPA assets, as at 31st December 2023.

Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 28.21% as on 31st December 2023.

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