REC Ltd's Profitable Growth: A Bright Spot in Power Finance

REC Ltd reported a 5.66% rise in Q4 FY25 net profit, driven by increased interest income. The power finance company's board recommended a Rs 2.60 dividend for 2024-25 and approved a joint venture with BHEL. Net credit-impaired assets reduced significantly, showcasing robust financial health.

State-owned REC Ltd has posted a notable 5.66% increase in net profit for the January-March quarter of FY25, reaching Rs 4,309.98 crore. This positive performance is primarily attributed to a surge in interest income, as detailed in the company's latest financial disclosures.

In the same period last fiscal year, the company's net profit stood at Rs 4,079.09 crore, highlighting its solid growth trajectory. REC Ltd's total income, including interest earnings, climbed to Rs 15,348.37 crore in the quarter under review, up from Rs 12,706.66 crore recorded in the previous financial year's corresponding period.

The board of directors has approved a cash dividend of Rs 2.60 per share for 2024-25, complementing the Rs 15.40 interim dividend declared across four tranches during FY25. Additionally, in a strategic move, REC Ltd's board has sanctioned the creation of a Joint Venture with BHEL for renewable energy projects.

(With inputs from agencies.)