REC Reports 16.57% Jump in Q1 Profit Driven by Higher Revenues

State-owned REC has reported a 16.57% rise in consolidated net profit to Rs 3,460.19 crore for the June quarter, driven by increased revenues. The net profit was Rs 2,968.05 crore a year ago. The company's total income rose to Rs 13,092.44 crore. An interim dividend of Rs 3.50 per share has been approved.

State-owned REC on Saturday reported a 16.57 per cent rise in consolidated net profit to Rs 3,460.19 crore for the June quarter, mainly driven by higher revenues.

Last year, during the same period, the net profit stood at Rs 2,968.05 crore, according to an exchange filing.

Total income for the period rose to Rs 13,092.44 crore from Rs 11,108.16 crore a year ago. Expenses also increased to Rs 8,743.22 crore compared to Rs 7,386.99 crore last year.

The board of directors has approved an interim dividend of Rs 3.50 per equity share of Rs 10 each for the financial year 2024-25.

Additionally, the company has struck off the name of its wholly-owned subsidiary, Khavda II-D Transmission, from the Registrar of the Companies.

Chairman and Managing Director (CMD) Vivek Kumar Dewangan noted that healthy figures were maintained due to growth in various verticals, revised interest rates on loan assets, and efficient finance cost management. Earnings per share for June 2024 were Rs 13.07, up from Rs 11.24 in June 2023.

The company's net worth also rose by 19% year on year to Rs 72,351 crores as of 30th June 2024, driven by profit growth.

The loan book grew by 17% to Rs 5.30 lakh crore compared to Rs 4.54 lakh crores in April-June 2023. Net credit-impaired assets reduced to 0.82% with a provision coverage ratio of 68.48% on NPA assets.

REC, under the Ministry of Power, offers long-term loans and financing to state, Centre, and private companies for infrastructure development in the country.