New Delhi: In a significant milestone for REC Limited, a ‘Maharatna’ company under the administrative control of the Ministry of Power, Government of India, and registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC), the company has reported its highest-ever quarterly profit of ₹3,773 crore for the quarter ending on September 30, 2023. This remarkable achievement can be attributed to several key factors, including improving asset quality, increased lending rates, and effective finance cost management. As a result, the annualized Earnings Per Share (EPS) for the same period surged to ₹51.14 per share, a substantial increase from ₹39.32 per share at the end of September 2022.
The company's commitment to excellence extends beyond profits. REC Limited has not only grown financially but also strengthened its balance sheet, with the Net Worth reaching ₹63,117 crore as of September 30, 2023, marking an impressive 18% year-on-year growth.
One of the most significant indicators of REC's success is its loan book, which has continued its growth trajectory, increasing by 20% to ₹4.74 lakh crore compared to ₹3.94 lakh crore at the end of September 2022. Moreover, the company's focus on maintaining asset quality is evident as the Net Credit-impaired assets have reduced to 0.96%, and the Provision Coverage Ratio on Non-Performing Assets (NPAs) stands at a robust 69.37%, all as of September 30, 2023.
In terms of financial stability, REC Limited's Capital Adequacy Ratio (CAR) remains strong at 28.53% as of September 30, 2023, demonstrating the company's ability to support future growth initiatives.
Notably, the company's dedication to its shareholders continues, as the Board of Directors has declared a second interim dividend of ₹3.50 per equity share. The total interim dividend for the fiscal year 2023-24 now stands at ₹6.50 per equity share, bringing joy to its valued shareholders.
REC Limited's journey extends beyond conventional finance, as it has diversified into the infrastructure and logistics sector in a major way since becoming a Maharatna company in September 2022. The company's strategic partnerships are a testament to its commitment to fostering growth and development. REC has signed MOUs with esteemed institutions like Punjab National Bank, Bank of India, and SJVN for various infrastructure and power generation projects, amounting to a substantial ₹135,000 crore.
As a Maharatna company, REC Limited is committed to catalyzing India's energy transition in line with the nation's COP26 commitments and recent G20 pledges. The company aspires to achieve a green finance loan book of ₹3 lakh crore by the fiscal year 2030. REC has taken substantial steps towards this goal, signing MOUs totaling approximately ₹2.86 lakh crore during the G20 Summit. /BI/
