New Delhi (08.05.2025): Rural Electrification Corporation (REC Ltd), a Maharatna power sector financer under the Ministry of Power, Thursday released its March quarter (Q4FY25) performance. In his first media interaction as the newly appointed CMD of REC Jitendra Srivastava (IAS: 2000: BH) led the board of directors while releasing the outcomes. The Board of Directors approved the audited standalone and consolidated financial results for the year ended March 31, 2025 which may be summarised as follows:
Operational and financial performances: Q4 FY25 vs Q4 FY24 (Standalone):
- Disbursements: Rs. 45,538 crore Vs Rs. 39,374 Crs, up by 16%
- Net Interest Income (NII): Rs. 5,876 crore Vs Rs. 4,263 crore, up by 38%
- Net Profit: Rs. 4,236 crore Vs Rs. 4,016 crore, up by 5%
- Total income: Rs. 15,174 crore Vs Rs. 12,263 crore, up by 24%
- Net Interest Margin (NIM): 3.64% Vs 3.60%, up by 4 bps
Operational and Financial Highlights: 12 months FY25 vs 12 months FY24 (Standalone):
- Disbursements: Rs. 1,91,185 crore Vs Rs. 1,61,462 crore, up by 18%
- Net Interest Income (NII): Rs. 19,878 crore Vs Rs. 15,685 crore, up by 27%
- Net Profit: Rs. 15,713 crore Vs Rs. 14,019 crore, up by 12%
- Total Income: Rs. 55,980 crore Vs Rs. 47,214 crore, up by 19%
- Net Interest Margin (NIM): 3.63% Vs 3.57%, up by 6 bps
A robust PAT of ₹15,713 Crs:
Owing to growth in all the verticals, resetting of interest rates on loan assets and effective management of Finance Cost, REC claimed capability to maintain its spreads and NIMs resulting in robust profit after tax of Rs. 15,713 crore for the year ended March 31, 2025. As a result, the Earnings Per Share (EPS) for the year ended March 31, 2025 accelerated to Rs. 59.55 (Annualized) per share as against Rs. 53.11 per share as at March 31, 2024.
AUM maintained growth trajectory @ Rs 5.66 Crs:
The loan book i.e. Asset Under Management (AUM) has maintained its growth trajectory and has increased on sustained basis to Rs. 5.66 lakh crore as on March 31, 2025 against Rs. 5.09 lakh crore as on March 31, 2024.
Net credit-impaired assets reduced to 0.38% from 0.86%:
Further, the Net credit-impaired assets reduced to 0.38% from 0.86% post resolution of five credit-impaired loan assets having aggregate amount of Rs. 6,171 crore during the FY 2024-25.
Net Worth grown to Rs. 77,638 @ 13% YoY:
Aided by growth in profits, the Net Worth has reportedly grown to Rs. 77,638 crore as on March 31, 2025, as compared to Rs. 68,783 crore as on March 31, 2024 registering an increase of 13% YoY.
Comfortable CAR (25.99%) to fund future growth:
Indicating the ample opportunity to support future growth, the Capital Adequacy Ratio (CAR) of the Company stands at a comfortable 25.99% as on March 31, 2025.
Dividend of Rs 2.6 per share:
The Board of Directors of the Company recommended a final dividend of Rs. 2.60 per equity share (on face value of Rs. 10/- each) subject to approval of shareholders in the ensuing AGM of the Company. The total dividend per share (including proposed final dividend) for the financial year 2024-25 is Rs. 18/- as compared to Rs. 16/- for the financial year 2023-24.
