REC Ltd Reports Exceptional Q3 Results, Achieves Record 9M Profit of ₹10,003 Crores

The Board of Directors at REC Limited has granted approval for the unaudited standalone and consolidated financial results for the quarter and period concluding on December 31, 2023, showcasing the company’s continued financial prowess and strategic acumen.

In the operational and financial highlights for Q3 FY24 compared to Q3 FY23 (Standalone), REC Limited has achieved significant milestones. Sanctions skyrocketed to ₹1,32,049 crores, exhibiting an impressive 177% increase from ₹47,712 crores, with the Renewable sector accounting for a substantial 57%. Disbursements surged to ₹46,358 crores, marking a commendable 56% increase from ₹29,639 crores. Interest income on loan assets reached ₹11,812 crores, demonstrating a robust 22% rise from ₹9,660 crores. The net profit also experienced a commendable 14% increase, reaching ₹3,269 crores compared to ₹2,878 crores in Q3 FY23.

For the 9-month period of FY24 versus 9M FY23 (Standalone), REC Limited continued its impressive performance. Sanctions reached ₹3,25,941 crores, reflecting a significant 69% increase from ₹1,92,496 crores, with the Renewable sector contributing 39%. Disbursements more than doubled, soaring by an impressive 104% to ₹1,22,089 crores from ₹59,907 crores. Interest income on loan assets increased by 18%, reaching ₹33,490 crores, up from ₹28,456 crores. The net profit showed an exemplary 24% rise, reaching ₹10,003 crores compared to ₹8,054 crores in 9M FY23.

Thanks to REC’s commitment to improving asset quality, a judicious increase in lending rates, and effective finance cost management, the company achieved its highest-ever 9M profit of ₹10,003 crores. Consequently, the annualized Earnings Per Share (EPS) for the period ending December 31, 2023, accelerated to ₹50.65 per share, showcasing a significant improvement from ₹40.79 per share as at December 31, 2022. Supported by the growth in profits, the Net Worth surged to ₹64,787 crores as of December 31, 2023, marking a commendable 18% Year-on-Year increase.

Maintaining its growth trajectory, REC Limited’s loan book increased by an impressive 21% to ₹4.97 lakh crores compared to ₹4.11 lakh crores as at December 31, 2022. Demonstrating improved asset quality, Net Credit-impaired assets reduced to 0.82% from 1.12% as at December 31, 2022, with a Provision Coverage Ratio of 70.41% on NPA assets as at December 31, 2023. This indicates the company’s commitment to prudent financial management. The Capital Adequacy Ratio (CRAR) stands at a robust and comfortable 28.21% as of December 31, 2023, signifying ample support for future growth and earning REC recognition for its solid financial foundation.

IndianBureaucracy.com extends its heartfelt congratulations and best wishes to REC Limited, recognizing and applauding the company’s remarkable financial achievements and its crucial role in powering India’s growth.