REC records its highest ever 9-month profit at ₹ 10,003 crores

Newdelhi:2 3/1/24:The Board of Directors of REC Limited approved the unaudited standalone and consolidated financial results for the quarter & period ending 31^st December 2023.

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

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

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

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

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 ₹ 10,003 crores. As a result, the annualized Earnings Per Share (EPS) for the period ended 31^st December 2023 accelerated to ₹ 50.65 per share as against ₹ 40.79 per share as of 31^st December 2022.

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

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

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

The press conference held by REC, where the results have been unveiled, can be watched here.

REC is a ‘Maharatna’ Central Public Sector Enterprise under the Ministry of Power and is registered with RBI as a Non-Banking Finance Company (NBFC), and Infrastructure Financing Company (IFC). REC is financing the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy, and new technologies like Electric Vehicles, Battery Storage, Pumped Storage projects, Green Hydrogen, and Green Ammonia projects. More recently, REC has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institutions, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel and Refinery. REC Ltd. provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country. REC Ltd. continues to play a key strategic role in the flagship schemes of the Government for the power sector and has been nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last mile distribution system, 100% village electrification and household electrification in the country. REC has also been the nodal agency for certain States and Union Territories for the Revamped Distribution Sector Scheme (RDSS). REC has also been responsible for Pradhan Mantri Suryodaya Yojana from Central Government. The loan book of REC stands at Rs 4.74 Lakh Crore and Net Worth at Rs. 63,117 crores on 30 September 2023.