REC Limited Reports 16% Jump in Q1 Profit for FY2025

REC Limited, under the Ministry of Power, reports a 16% rise in net profit amounting to Rs 3,442 crore in Q1 FY2025. Revenue from operations grew 19% to Rs 13,023 crore. Disbursements and sanctions showed notable increases, along with a solid performance in renewable energy sector funding.

The Ministry of Power-owned REC Limited has reported a net profit of Rs 3,442 crore, marking a 16 per cent increase in the first quarter of the financial year 2025, compared to Rs 2,961 crore in the same period last year. REC is categorized as a 'Maharatna' company and operates under the administrative purview of the Ministry of Power, Government of India. It is registered with RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC).

As per the company's financial statement, revenue from operations surged by 19 per cent to Rs 13,023 crore, while total income increased by the same margin, reaching Rs 13,037 crore. Net interest income experienced a 30 per cent growth, standing at Rs 4,713 crore. The return on net worth was reported at 19.51 per cent, with market capitalisation seeing a staggering rise of 219 per cent to Rs 1,38,348 crore.

The Board of Directors declared an interim dividend of Rs 3.50 per equity share, with a face value of Rs 10 each. Highlighting the impressive performance, the company stated, "Owing to growth in all verticals, resetting of interest rates on loan assets, and effective management of finance costs, REC has maintained its spreads and net interest margins, culminating in a robust quarterly profit after tax of Rs 3,442 crore."

During this period, REC's total sanctions grew by 24 per cent year-on-year to Rs 1,12,791 crore, with an impressive 59 per cent rise in sanctions to the renewable energy sector, reaching Rs 39,655 crore. Disbursements also saw a significant rise of 28 per cent, amounting to Rs 43,652 crore, mainly driven by a 249 per cent year-on-year increase in disbursements to the renewable sector.

The company's loan book showed a growth trend, increasing by 17 per cent to Rs 5.30 lakh crore as of June 30, 2024, in comparison to Rs 4.54 lakh crore a year ago. Additionally, the net worth grew by 19 per cent year-on-year to Rs 72,351 crore, with the Capital Adequacy Ratio (CRAR) remaining at a healthy 26.77 per cent.

REC's shares were trading at Rs 623.55, up 2.56 per cent or 15.55 points. Over the past six months, REC Limited has delivered a return of 24.78 per cent to its shareholders.

(With inputs from agencies.)