New Delhi (24.01.2024): REC Limited has recorded a 14 per cent increase in its standalone net profit for the third quarter of Financial Year 2024, reaching Rs 3,269 crore, up from Rs 2,878 crore in the corresponding period last year.
Financial results announced on January 23, 2024 for the quarter ending December 31, 2023, also revealed a significant surge in loan sanctions, which jumped to 177 per cent at Rs 1,32,049 crore, compared to Rs 47,712 crore in Q3 FY23. The renewable sector contributed 57 per cent to this substantial growth.
The company registered 56 per cent increase in the disbursement category with Rs 46,358 crore against Rs 29,639 crore in the corresponding quarter last year. The interest income on loan assets grew by 22 per cent, amounting to Rs 11,812 crore as opposed to Rs 9,660 crore in Q3 FY23.
The first nine months of FY24 also saw robust growth for REC. Loan sanctions rose by 69 per cent, reaching Rs 3,25,941 crore, with the renewable sector accounting for 39 per cent. Disbursements doubled, marking a 104 per cent increase to Rs 1,22,089 crore. Interest income on loan assets for this period went up by 18 per cent to Rs 33,490 crore, and net profit witnessed a 24 per cent rise, amounting to Rs 10,003 crore.
Highlighting the company's financial health, the annualised earnings per share (EPS) escalated to Rs 50.65 per share as of December 31, 2023, from Rs 40.79 per share in the previous year. REC's net worth also observed an 18 per cent year-over-year increase, standing at Rs 64,787 crore.
The loan book maintained a positive growth trajectory, increasing by 21 per cent to Rs 4.97 lakh crore, while the net credit-impaired assets reduced to 0.82 per cent. The capital adequacy ratio (CRAR) of REC stands comfortably at 28.21 per cent.
