New Delhi: REC Limited on Thursday reported a 23 per cent year-on-year (YoY) increase in its standalone net profit to ₹4,029 crore for the third quarter of the financial year 2024-25, compared to ₹3,269 crore in the same period last year. The company’s Board of Directors approved the limited reviewed standalone and consolidated financial results for the period ended December 31, 2024, and declared a third interim dividend of ₹4.30 per equity share with a face value of ₹10 each.
The company’s net interest income for the quarter rose 19 per cent to ₹4,930 crore from ₹4,153 crore in the corresponding quarter of the previous fiscal. Revenue from operations increased by 18 per cent to ₹14,157 crore as against ₹11,982 crore, while total income stood at ₹14,173 crore compared to ₹12,000 crore, registering an 18 per cent growth. Disbursements during the quarter were ₹54,692 crore, up 18 per cent from ₹46,358 crore recorded in the same quarter last year.
The company reported a reduction in net credit-impaired assets to 0.74 per cent from 0.82 per cent in the year-ago period. The average cost of funds decreased by 10 basis points to 7.18 per cent from 7.28 per cent, while the spread improved by 10 basis points to 2.95 per cent from 2.85 per cent. The net interest margin (NIM) for the quarter rose to 3.66 per cent, up 5 basis points from 3.61 per cent in the corresponding period last year.
For the nine-month period ending December 31, 2024, REC’s standalone net profit increased 15 per cent to ₹11,477 crore compared to ₹10,003 crore in the same period of the previous year. The net interest income during this period grew 24 per cent to ₹14,191 crore from ₹11,422 crore, while revenue from operations rose 18 per cent to ₹40,752 crore as against ₹34,533 crore. Total income for the period stood at ₹40,805 crore, up from ₹34,571 crore, marking an 18 per cent growth.
Disbursements for the nine-month period reached ₹1,45,647 crore, an increase of 19 per cent compared to ₹1,22,089 crore in the same period last year. Disbursements to the renewable energy sector saw a 79 per cent YoY increase, rising to ₹17,612 crore from ₹9,858 crore. The company reported an improvement in spread to 2.94 per cent from 2.82 per cent, while NIM increased to 3.64 per cent from 3.52 per cent.
REC’s return on net worth stood at 21.07 per cent. The company’s market capitalization rose to ₹1,31,844 crore, up 21 per cent from ₹1,08,712 crore as of December 31, 2023. The company’s asset under management (AUM) grew to ₹5.65 lakh crore as of December 31, 2024, compared to ₹4.97 lakh crore a year ago. The net worth increased by 18 per cent YoY to ₹76,502 crore from ₹64,787 crore as of December 31, 2023.
The company reported a capital adequacy ratio (CRAR) of 25.33 per cent as of December 31, 2024. Earnings per share (EPS) for the period under review rose to ₹58.11 (annualized) compared to ₹50.65 in the same period last year.
“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 profit after tax of ₹11,477 crore for the period ending December 31, 2024,” the company said.
