REC Reports 23% Surge In Net Profit, Declares Rs 4.30 Per Share Interim Dividend – EQ
In Short : REC Ltd. reported a 23% rise in net profit, driven by strong loan growth and improved asset quality. The company declared an interim dividend of ₹4.30 per share, reflecting its robust financial performance. REC continues to support India’s energy sector with increased financing for renewable and infrastructure projects.
In Detail : For the quarter ending December 31, 2024, REC’s revenue from operations grew 18 per cent to Rs 14,157 crore, compared to Rs 11,982 crore in Q3 FY24. Net interest income rose 19 per cent to Rs 4,930 crore, while net credit-impaired assets declined to 0.74 per cent from 0.82 per cent. The company’s disbursements saw an 18 per cent increase, reaching Rs 54,692 crore.
For the first nine months of FY25, REC reported a 15 per cent YoY rise in net profit to Rs 11,477 crore. Total income grew 18 per cent to Rs 40,805 crore, while net interest income surged 24 per cent to Rs 14,191 crore. Disbursements increased by 19 per cent to Rs 1,45,647 crore, with renewable energy disbursements witnessing a sharp 79 per cent jump to Rs 17,612 crore. The company’s asset under management (AUM) expanded to Rs 5.65 lakh crore from Rs 4.97 lakh crore a year ago.
REC’s market capitalization climbed 21 per cent to Rs 1,31,844 crore, while its net worth increased to Rs 76,502 crore, marking an 18 per cent YoY growth. The company maintained strong financial stability with a capital adequacy ratio of 25.33 per cent.
The robust performance was driven by growth across all verticals, effective cost management, and interest rate resets on loan assets. With a return on net worth of 21.07 per cent, REC’s earnings per share (EPS) rose to Rs 58.11 (annualised), compared to Rs 50.65 in the previous year.
Reaffirming its commitment to rewarding shareholders, REC’s latest dividend declaration underscores its strong financial position and sustained profitability.
