Mumbai (02.11.2023): REC Limited has reported its unaudited financial results (Standalone) for the 2nd Quarter and Half Year ended September 30, 2023 with highest ever quarterly profit at ₹3,773 cr.
The Key highlights were briefed by CMD, REC Ltd. Vivek Kumar Dewangan (IAS: 1993: MN) in a press conference in Mumbai. The Director (Projects) Vijay Kumar Singh, Director (Finance) Ajoy Choudhary, Executive Director (Finance) Sanjay Kumar, Executive Director and Company Secretary JS Amitabh and Executive Director TSC Bosh were also present on the occasion.
Owing to the improving asset quality, increase in lending rates and effective management of Finance Cost, REC is able to record its highest ever quarterly profit of ₹ 3,773 crore. As a result, the annualised Earnings Per Share for the quarter ended September 30, 2023 accelerated to ₹ 51.14 per share as against ₹ 39.32 per share as at 30th September 2022. Aided by growth in profits, the Net Worth has grown to ₹ 63,117 crore as on September 30, 2023, an increase of 18% YoY.
The loan book has maintained its growth trajectory and has increased by 20% to ₹ 4.74 lakh crore as against ₹ 3.94 lakh crore as at 30th September 2022. Signifying improving asset quality, the Net Credit-impaired assets have reduced to 0.96% with Provision Coverage Ratio of 69.37% on NPA assets, as at September 30, 2023.
Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 28.53% as on September 30, 2023.
Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has declared the second interim dividend of ₹3.50 per equity share (on face value of ₹ 10/- each) and 13th November 2023 has been fixed as Record Date for payment of Second Interim Dividend. The Total Interim Dividend for the FY 23-24 is ₹6.50 per equity share (on face value of ₹ 10/- each)
REC Limited has also diversified into infrastructure and Logistics sector in a major way, ever since it became a Maharatna company in September 2022. Recently, for implementation of various infrastructure projects, REC has signed MOU with Punjab National Bank for ₹55,000 crore, signed MOU with Bank of India for ₹30,000 crore and also signed MOU with SJVN for ₹50,000 crore for setting up power generation projects based on conventional and renewable sources of energy.
REC Limited has emerged as a frontrunner in catalyzing India's energy transition in alignment with the nation's COP26 commitments and recent G20 pledges. With a resolute vision and unwavering commitment, REC is on a trajectory to achieve a green finance loan book of ₹3 Lakh crore by the fiscal year 2030.On the sidelines of the G20 Summit, REC held one-on-one discussions with RE Developers leading to successful signing of Memorandums of Understanding (MoUs) amounting to a total of around ₹2.86 Lakh crore.
REC’s dedication to fostering green finance initiatives and its pivotal role in India's energy transition reinforce its commitment to creating a sustainable and eco-friendly future. As India and the world strive towards a cleaner and greener energy landscape, REC stands as a beacon of growth and overall development of economy of the country.