REC Limited, a 'Maharatna' company under the administrative control of the Ministry of Power, Government of India, and registered with the Reserve Bank of India as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC), has today reported its unaudited financial results (Standalone) for the second quarter and half year ended 30th September 2023.
Vivek Kumar Dewangan, CMD of REC Ltd., briefed the press today in Mumbai on the key points. Vijay Kumar Singh, Director (Projects), Ajoy Choudhary, Executive Director (Finance), Sanjay Kumar, Executive Director and Company Secretary JS Amitabh, and Executive Director TSC Bosh were also present.
The following are the main highlights:
Highlights of Operations and Finance -Q2 FY24 versus Q2 FY23 (Standalone)
Sanctions: 1,04,366 crore vs. 84,889 crore, an increase of 23%; the renewable industry accounts for 24%.
Disbursements: 41,598 crore vs. 17,827 crore, a 133% increase
Interest Income on Loan Assets: 11,213 crore vs. 9,534 crore, an increase of 18%
Net profit increased 38% to 3,773 crore from 2,728 crore.
Total Comprehensive Income: 4,188 crore vs. 1,915 crore, an increase of 119%
Highlights of Operations and Finance -H1 FY24 compared. H1 FY23 (Standalone)
Sanctions: 1,95,163 crore vs. 1,44,784 crore, an increase of 35%; the renewable industry accounts for 26%.
Disbursements: 75,731 crore vs. 30,269 crore, a 150% increase
Interest Income on Loan Assets: 21,678 crore vs. 18,796 crore, an increase of 15%
Net profit increased by 30% to 6,734 crore from 5,176 crore.
Total Comprehensive Income: 7,331 crore vs. 3,690 crore, a 99% increase
REC is able to earn its highest quarterly profit of 3,773 crore because to improved asset quality, increased lending rates, and excellent control of finance costs. As a consequence, the annualised Earnings Per Share for the quarter ended 30th September 2023 increased to 51.14 per share from 39.32 per share at the end of the previous quarter.
Profit growth has helped the Net Worth grow to 63,117 crore as of 30th September 2023, an increase of 18% year on year.
The loan book has maintained its growth trajectory, increasing by 20% to 4.74 lakh crore as of September 30, 2022, from 3.94 lakh crore. As of September 30th, 2023, the Net Credit-impaired assets had decreased to 0.96%, with a Provision Coverage Ratio of 69.37% on NPA assets.
The Capital Adequacy Ratio (CRAR) of the Company is a comfortable 28.53% as of September 30, 2023, indicating enough opportunity to sustain future development.
In keeping with the Company's tradition of rewarding its shareholders, the Board of Directors has announced the second interim dividend of 3.50 per equity share (on a face value of 10/- each), with the 13th of November 2023 set as the Record Date for payment of the Second Interim Dividend. The total interim dividend for fiscal years 23-24 is $6.50 per equity share (based on a face value of 10/- each).
Since becoming a Maharatna corporation in September 2022, REC Limited has also expanded significantly into the infrastructure and logistics sectors. Recently, REC signed Memorandums of Understanding (MOUs) with Punjab National Bank for 55,000 crore, Bank of India for 30,000 crore, and SJVN for 50,000 crore for the implementation of various infrastructure projects based on conventional and renewable energy sources.
The Maharatna business REC Limited has emerged as a forerunner in catalysing India's energy transition in line with the country's COP26 obligations and current G20 pledges. REC is on track to reach a green finance loan book of 3 lakh crore by fiscal year 2030, thanks to a clear strategy and consistent commitment.On the margins of the G20 Summit, REC had one-on-one conversations with RE Developers, which resulted in the successful signing of Memorandums of Understanding (MoUs) worth around 2.86 Lakh rupees.
REC's commitment to supporting green financing projects, as well as its vital position in India's energy transformation, underscores its commitment to ensuring a sustainable and environmentally friendly future. As India and the rest of the globe strive for a cleaner and greener energy landscape, REC serves as a beacon of progress and overall economic development in the country.
REC Limited Information:
REC Limited, a Maharatna CPSE established under the Ministry of Power in 1969, provides long-term loans and other finance products for the Power-Infrastructure sector, which includes Generation, Transmission, Distribution, Renewable Energy, and new technologies such as Electric Vehicles, Battery Storage, Green Hydrogen, and so on. REC has also expanded into the core infrastructure industry, which includes roads, metro, airports, information technology, and ports, among other things. REC's loan book stands at 4.54 lakh crore at the conclusion of the first quarter of the current fiscal year.