THE HIGHEST EVER HALF YEARLY PROFIT OF ₹7,448 CRORE
by Suman Gupta
Delhi, October 2024: The Board of Directors of REC Limited, today approved the limited reviewed standalone and consolidated financial results for the half year ended September 30, 2024.
Operational and Financial Highlights: Q2 FY25 vs Q2 FY24 (Standalone)
– Revenue from operations: ₹13,571 crore vs. ₹11,576 crore, up 17%
– Total income: ₹13,596 crore vs. ₹11,590 crore, up 17%
– Net interest income : ₹5,012 crore vs. ₹4,091 crore, up 22%
– Disbursements: ₹47,303 crore vs. ₹41,598 crore, up 14%.
– Disbursements in Renewable : ₹5,946 crore vs. ₹4,309 crore, up 38%
Operational and Financial Highlights: H1 FY25 vs H1 FY24 (Standalone)
– Revenue from operations: ₹26,594 crore vs. ₹22,552 crore, up 18%
– Total income: ₹26,633 crore vs. ₹22,571 crore, up 18%
– Net interest income : ₹9,723 crore vs. ₹7,763 crore, up 25%
– Total sanctions to renewable sector: ₹60,391 crore vs. ₹49,929 crore, up by 21%
– Disbursements: ₹90,955 crore vs. ₹75,731 crore, up 20%, of which disbursements to renewables constituted major component : ₹11,297 Crore Vs. ₹5,843 Crore, i.e. with YoY increase of 93%
– Net Profit: ₹7,448 crore vs. ₹6,734 crore, up 11%
– Yield: 10.08% vs. 9.90%, up 18 bps
– Average cost of funds: 7.12% vs. 7.17%, reduction by 5 bps
– Spread: 2.96% vs. 2.73%, up 23 bps
– Net interest margin: 3.64% vs. 3.41%, up 23 bps
– Return on net worth: 21.03%
– Market capitalization: ₹1,46,011 crore vs. ₹75,678 crore, up 93%
Owing to growth in all the verticals, resetting of interest rates on loan assets and effective management of Finance Cost, REC is able to maintain its spreads and NIMs resulting in robust half yearly profit after tax of ₹7,448 crore. As a result, the Earnings Per Share (EPS) for the period ended September 30, 2024 accelerated to ₹28.28 (Annualized ₹56.56) per share as against ₹25.57 (Annualized ₹51.14) per share as at September 30, 2023.
The loan book i.e. Asset Under Management (AUM) has maintained its growth trajectory and has increased by 15.2% on sustained basis to ₹5.46 lakh crore as against ₹4.74 lakh crores as at September 30, 2023. The net credit-impaired assets as at September 30, 2024 have reduced to 0.88% from 0.96% as at September 30, 2023 with Provision Coverage Ratio of 65.12% on NPA assets, as at September 30, 2024.
Aided by growth in profits, the Net Worth has grown to ₹72,893 crores as on September 30, 2024, as compared to ₹63,117 crore as on Sept 30,2023 registering an increase of 15% YoY.
Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 25.31% as at September 30, 2024.
Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has declared the 2nd interim dividend of ₹ 4.00 per equity share (on face value of ₹10/- each).
