The Board of Directors of REC recently approved the limited reviewed standalone and consolidated financial results for the quarter ended 30th June 2024.
In Q1 FY25, the company demonstrated robust growth compared to Q1 FY24. Total sanctions increased by 24 per cent to Rs 1,12,791 crore from Rs 90,797 crore, with a notable 59 per cent rise in sanctions to the renewable sector, which amounted to Rs 39,655 crore compared to Rs 24,985 crore.
Disbursements rose by 28 per cent to Rs 43,652 crore from Rs 34,133 crore, with a significant year-over-year increase of 249 per cent in disbursements to renewables, constituting the major component. Revenue from operations grew by 19 per cent to Rs 13,023 crore from Rs 10,976 crore, and total income also saw a 19 per cent increase, reaching Rs 13,037 crore from Rs 10,981 crore. Net interest income surged by 30 per cent to Rs 4,713 crore from Rs 3,612 crore, while net profit improved by 16 per cent to Rs 3,442 crore from Rs 2,961 crore.
Yield slightly increased by 17 basis points to 9.99 per cent from 9.82 per cent, and the average cost of funds decreased by 18 basis points to 7.05 per cent from 7.23 per cent. The spread widened by 35 basis points to 2.94 per cent from 2.59 per cent, and the net interest margin expanded by 36 basis points to 3.64 per cent from 3.28 per cent. Return on net worth stood at 19.51 per cent. Market capitalization saw an impressive increase of 219 per cent, reaching Rs 1,38,348 crore compared to Rs 43,356 crore.
Owing to growth in all the verticals, resetting of interest rates on loan assets and effective management of Finance Cost, REC is able to maintain its spreads and NIMs resulting in robust quarterly profit after tax of Rs 3,442 crore. As a result, the Earnings Per Share (EPS) for the period ended 30th June 2024 accelerated by 16 per cent to Rs 13.07 per share as against Rs 11.24 per share as at 30th June 2023.
The loan book has maintained its growth trajectory and has increased by 17 per cent on a sustained basis to Rs 5.30 lakh crore as against Rs 4.54 lakh crores as at 30th June 2023. The net credit-impaired assets as at 30th June 2024 have reduced to 0.82 per cent from 0.97 per cent as at 30th June 2023 with Provision Coverage Ratio of 68.48 per cent on NPA assets, as at 30th June 2024.
Aided by growth in profits, the Net Worth has grown to Rs 72,351 crores as on 30th June 2024, registering an increase of 19 per cent YoY. Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 26.77 per cent as at 30th June 2024.
Continuing with the tradition to reward its shareholders , the Board of Directors of the Company has declared the interim dividend of Rs 3.50 per equity share (on face value of Rs 10/- each).
