REC Limited Reports Robust Financial Performance, Records Highest Ever 9-Month Profit at ₹ 10,003 Crores

REC Limited has announced impressive unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2023. The Board of Directors approved the financial highlights showcasing substantial growth and improved asset quality.

Q3 FY24 Operational and Financial Highlights (Standalone):

• Loan Sanctions: ₹1,32,049 crores, a remarkable increase of 177% from ₹47,712 crores in Q3 FY23. Notably, the renewable sector constitutes 57% of the total loan sanctions.
• Disbursements: ₹46,358 crores, up by 56% from ₹29,639 crores in Q3 FY23.
• Interest Income on Loan Assets: ₹11,812 crores, reflecting a 22% increase from ₹9,660 crores in Q3 FY23.
• Net Profit: ₹3,269 crores, a significant 14% growth from ₹2,878 crores in Q3 FY23.

9M FY24 Operational and Financial Highlights (Standalone):

• Loan Sanctions: ₹3,25,941 crores, a robust growth of 69% from ₹1,92,496 crores in 9M FY23, with the renewable sector constituting 39%.
• Disbursements: ₹1,22,089 crores, marking a substantial 104% increase from ₹59,907 crores in 9M FY23.
• Interest Income on Loan Assets: ₹33,490 crores, an 18% increase from ₹28,456 crores in 9M FY23.
• Net Profit: ₹10,003 crores, a notable 24% growth from ₹8,054 crores in 9M FY23.

The company attributes its highest-ever 9M profit to improving asset quality, an increase in lending rates, and effective management of financing costs. The annualized Earnings Per Share (EPS) for the period ended December 31, 2023, accelerated to ₹50.65 per share, compared to ₹40.79 per share as at December 31, 2022.

With a growth of 18% YoY, the Net Worth has surged to ₹64,787 crores as of December 31, 2023. The loan book has maintained a robust growth trajectory, increasing by 21% to ₹4.97 lakh crores from ₹4.11 lakh crores as of December 31, 2022. Indicating improving asset quality, Net Credit-impaired assets have reduced to 0.82% from 1.12% as of December 31, 2022, with a Provision Coverage Ratio of 70.41% on NPA assets as of December 31, 2023.

Emphasizing the potential to support future growth, REC Limited boasts a comfortable Capital Adequacy Ratio (CRAR) of 28.21% as of December 31, 2023.

The financial results affirm REC Limited’s commitment to sustained growth, financial prudence, and its pivotal role in fostering India’s infrastructure development.