by Suman Gupta
The Board of Directors of REC Limited, a Maharatna Central Public Sector Enterprise and leading NBFC under the Ministry of Power, today approved the audited standalone and consolidated financial results for the quarter and year ended 31st March, 2024.
Operational and Financial Highlights: Q4 FY24 vs Q4 FY23 (Standalone)
Revenue from operations: ₹ 12,613 crores vs. ₹ 10,113 crores, up 25%
Total income: ₹ 12,643 crores vs. ₹ 10,124 crores, up 25%
Net interest income: ₹ 4,407 crores vs. ₹ 3,409 crore, up 29%
Net Profit: ₹ 4,016 crores vs. ₹ 3,001 crore, up 34%
Total Comprehensive Income: ₹ 5,183 crores vs. ₹ 3,645 crores, up 42%
Yield: 10.03% vs. 9.65%, up 38 basis points
Average cost of funds: 7.14% vs. 7.17%, reduction by 3 basis points
Spread: 2.89% vs. 2.48%, up 41 basis points
Net interest margin: 3.60% vs. 3.29%, up 31 basis points
Return on net worth: 24.06% vs. 21.34%, up 13%
Operational and Financial Highlights: 12M FY24 vs 12M FY23 (Standalone)
Total sanctions: ₹ 3,58,816 crores vs. ₹ 2,68,461 crores, up 34%, of which sanctions to renewable sector: ₹ 1,36,516 crores vs. ₹ 21,554 crores, up 533%
Renewable sanctions comprise:
Solar: ₹ 20,956 crores vs. ₹ 9,301 crores
Module manufacturing: ₹ 21,565 crores vs. ₹ Nil crores
Large Hydro: ₹ 32,450 crores vs. ₹ 682 crores
Pumped Storage: ₹ 28,304 crores vs. ₹ 6,075 crores
Green Hydrogen: ₹ 7,997 crores vs. Nil
E-Mobility: ₹ 7,214 crores vs. ₹ 2,429 crores
Wind turbine manufacturing: ₹ 3,195 crores vs. Nil
Wind: ₹ 3,453 crores vs. ₹ 2,436 crores
Hybrid: ₹ 10,098 crores vs. ₹ 220 crores
Others: ₹ 1,284 crores vs. ₹ 411 crores
Disbursements: ₹ 1,61,462 crores vs. ₹ 96,846 crores, up 67%
Revenue from operations: ₹ 47,146 crores vs. ₹ 39,208 crores, up 20%
Total income: ₹ 47,214 crores vs. ₹ 39,253 crores, up 20%
Net interest income: ₹ 16,167 crores vs. ₹ 13,714 crores, up 18%
Net Profit: ₹ 14,019 crores vs. ₹ 11,055 crores, up 27%
Total Comprehensive Income: ₹ 15,063 crores vs. ₹ 10,084 crores, up 49%
Yield: 9.99% vs. 9.73%, up 26 basis points
Average cost of funds: 7.13% vs. 7.28%, reduction by 15 basis points
Spread: 2.86% vs. 2.45%, up 41 basis points
Net interest margin: 3.57% vs. 3.38%, up 19 basis points
Return on net worth: 22.17% vs. 20.35%, up 9%
Market capitalization: ₹ 1,18,757 crore vs. ₹ 30,400, up 290%
Owing to the improving asset quality and effective resolution of stressed assets, and resetting of the lending rates and effective management of finance cost, REC has been able to record its highest ever annual profit after tax of ₹ 14,019 crores. As a result, the Earnings Per Share (EPS) for the year ended 31st March 2024 accelerated by 27% to ₹ 53.11 per share as against ₹ 41.85 per share as at 31st March 2023.
Aided by growth in profits, the Net Worth has grown to ₹ 68,783 crores as on 31st March 2024, registering an increase of 19% YoY.
The loan book has maintained its growth trajectory and has increased by 17% to ₹ 5.09 lakh crores as against ₹ 4.35 lakh crores as at 31st March, 2023. Signifying improving asset quality, the net credit-impaired assets as at 31st March, 2024 have reduced to 0.86% from 1.01% as at 31st March 2023 with Provision Coverage Ratio of 68.45% on NPA assets, as at 31st March, 2024.
Indicating the ample opportunity to support the future growth, Capital Adequacy Ratio (CRAR) of the company stands at a comfortable 25.82% as at 31st March, 2024.
Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has declared the final dividend of ₹ 5 per equity share (on face value of ₹ 10/- each) and the total dividend for FY 2023-24 is ₹ 16 per equity share.
