REC posted a 16.57 per cent rise in consolidated net profit to Rs 3,460.19 crore for the June quarter, mainly on the back of higher revenues. In the year-ago period, its net profit stood at Rs 2,968.05 crore, the company said in an exchange filing.
~Total income rose to Rs 13,092.44 crore from Rs 11,108.16 crore in the same period a year ago. Expenses stood at Rs 8,743.22 crore against Rs 7,386.99 crore a year ago.
Operational and Financial Highlights: Q1 FY25 vs Q1 FY24 (Standalone)
~Total sanctions: Rs 1,12,791 crore vs. Rs 90,797 crore, up 24%, of which sanctions to renewable sector: Rs 39,655 crore vs. Rs24,985 crore, up 59%
~ Disbursements: Rs 43,652 crore vs. Rs 34,133 crore, up 28%, of which disbursements to renewables constituted major component with YoY increase of 249%
~ Revenue from operations: Rs 13,023 crore vs. Rs 10,976 crores, up 19%
~Total income: Rs 13,037 crore vs. Rs 10,981 crores, up 19%
~ Net interest income: Rs 4,713 crore vs. Rs 3,612 crore, up 30%
~ Net Profit: Rs 3,442 crore vs. Rs 2,961 crore, up 16%
~Yield: 9.99% vs. 9.82%, up 17 bps
~ Average cost of funds: 7.05% vs. 7.23%, reduction by 18 bps
~ Spread: 2.94% vs. 2.59%, up 35 bps
~ Net interest margin: 3.64% vs. 3.28%, up 36 bps
~ Return on net worth: 19.51%
~ Market capitalization: Rs 1,38,348 crore vs. ? 43,356, up 219%
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 quarterly profit after tax of Rs 3,442 crore.
The loan book has maintained its growth trajectory and has increased by 17% on sustained basis to Rs 5.30 lakh crore as against Rs 4.54 lakh crores as at 30th June 2023. The net credit-impaired assets as at 30th June 2024 have reduced to 0.82% from 0.97% as at 30th June 2023 with Provision Coverage Ratio of 68.48% on NPA assets, as at 30th June 2024.
Aided by growth in profits, the Net Worth has grown to Rs 72,351 crores as on 30th June 2024, registering an increase of 19% YoY.
Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 26.77% as at 30th June 2024.
