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REC Limited Declares Financial Results, Reports Record Profits

For the entire fiscal year of 2023-24 compared to the previous fiscal year, REC demonstrated exceptional growth in various key metrics.

May 01, 2024. By Abha Rustagi

REC Limited, a Maharatna Central Public Sector Enterprise (CPSE) and a leading NBFC under the Ministry of Power has announced the approval of its audited standalone and consolidated financial results for the quarter and year ended March 31, 2024.

The Maharatna CPSE reported impressive figures across various key metrics for both the quarterly and annual periods.

For the fourth quarter of FY24 compared to the same period in FY23, REC saw a notable increase in revenue from operations, with revenue reaching INR 12,613 crores compared to INR 10,113 crores, marking a substantial 25 percent growth. Total income also experienced a similar growth trajectory, rising to INR 12,643 crores from INR 10,124 crores, up by 25 percent. Net interest income surged to INR 4,407 crores, a significant 29 percent increase from INR 3,409 crore in Q4 FY23. The company's net profit witnessed a growth of 34 percent, reaching INR 4,016 crores compared to INR 3,001 crore in the fourth quarter of the previous fiscal year.

For the entire fiscal year of 2023-24 compared to the previous fiscal year, REC demonstrated exceptional growth in various key metrics. Total sanctions increased significantly to INR 3,58,816 crores from INR 2,68,461 crores, marking a substantial 34 percent rise. Disbursements also surged to INR 1,61,462 crores, up by 67 percent from INR 96,846 crores in FY23. 

Revenue from operations for the year reached INR 47,146 crores, a notable 20 percent increase from INR 39,208 crores in the previous fiscal year. Total income similarly experienced a 20 percent growth, rising to INR 47,214 crores from INR 39,253 crores.

REC's net profit for the fiscal year stood at INR 14,019 crores, reflecting a remarkable 27 percent increase from INR 11,055 crores in the previous fiscal year. Additionally, the company's total comprehensive income surged by 49 percent, reaching INR 15,063 crores compared to INR 10,084 crores in FY23.

Furthermore, REC's market capitalization saw a significant rise to INR 1,18,757 crore, up by 290 percent from INR 30,400 in the previous fiscal year, indicating strong investor confidence in the company's growth prospects.

REC's achievements were attributed to several factors, including improving asset quality, effective resolution of stressed assets, resetting of lending rates, and prudent management of finance costs. The company's highest-ever annual profit after tax of INR 14,019 crores reflects its operational efficiency and strategic vision.

In addition to financial success, REC also demonstrated a commitment to shareholder value by declaring a final dividend of INR 5 per equity share for FY 2023-24, bringing the total dividend for the year to INR 16 per equity share.

With a growing loan book, improving asset quality, comfortable capital adequacy ratio, and a strong market presence, REC is well-positioned to support India's infrastructure and power sector growth while delivering value to its stakeholders.

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