REC Limited Achieves Record 9-Month Profit of INR 10,003 Crores
The impressive financial performance is attributed to improving asset quality, an increase in lending rates, and effective management of financing costs.
January 24, 2024. By Abha Rustagi
In the operational and financial highlights for Q3 FY24 compared to Q3 FY23, loan sanctions saw a remarkable increase of 177 percent, reaching INR 1,32,049 crores, with the renewable sector constituting 57 percent. Disbursements rose by 56 percent to INR 46,358 crores, and interest income on loan assets increased by 22 percent to INR 11,812 crores.
The net profit for Q3 FY24 reached INR 3,269 crores, reflecting a 14 percent increase. Looking at the 9M FY24 vs. 9M FY23 metrics, loan sanctions, disbursements, interest income, and net profit demonstrated substantial growth, emphasizing REC's robust financial performance.
The impressive financial performance is attributed to improving asset quality, an increase in lending rates, and effective management of financing costs. REC's annualized Earnings Per Share (EPS) for the period ended 31st December 2023 rose to INR 50.65 per share, compared to INR 40.79 per share as of 31st December 2022.
With profits contributing to growth, the Net Worth has increased to INR 64,787 crores as of 31st December 2023, reflecting an 18 percent YoY increase. The loan book has sustained its growth trajectory, marking a 21 percent increase to INR 4.97 lakh crore from INR 4.11 lakh crores as of 31st December 2022.
Notably, indicating improving asset quality, the Net Credit-impaired assets have reduced to 0.82 percent from 1.12 percent as of 31st December 2022, with a Provision Coverage Ratio of 70.41 percent on NPA assets as of 31st December 2023.
Highlighting the ample opportunity to support future growth, the Capital Adequacy Ratio (CRAR) of the company stands at a comfortable 28.21 percent as of 31st December 2023.
please contact: contact@energetica-india.net.
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