State-owned REC Ltd on Tuesday declared its quarterly results for Q4FY24 saying it posted a 33% rise in its consolidated net profit to Rs 4,079.09 crore on account of higher income.
A Maharatna Central Public Sector Enterprise and leading NBFC under the Ministry of Power, REC in a regulatory filing said that it clocked a net profit of Rs 3,065.37 crore during the January-March quarter preceding FY 2022-23.
It’s total income during the fourth quarter rose to Rs 12,706.66 crore from Rs 10,254.63 crore in the year-ago period with the total expenses were Rs 7,477.18 crore as against Rs 6,353.40 crore.
Notably, for the entire FY24, the company’s net profit was Rs 14,145.46 crore, up from Rs 11,166.98 crore in FY23.
The company’s revenue from operations surged by 25% at Rs 12,613 crores against Rs 10,113 crores. The average cost of funds reduced by 3 basis points to 7.14% against 7.17%.
The Net Interest Margin shoots by 31 basis points at 3.60% against 3.29% while the return on net worth was 24.06% against 21.34%, up 13%.
For the Financial Year 2024, the company sanctions Rs 3,58,816 crores against Rs 2,68,461 crores in the Financial Year 2023 registering 34% spike in sanctions.
Notably, the Maharatna CPSE registered 533% spike in the sanctions to renewable sector at Rs 1,36,516 crores against Rs 21,554 crores.
Owing to the improving asset quality and effective resolution of stressed assets, and resetting of the lending rates and effective management of finance cost, REC has been able to record its highest ever annual profit after tax of Rs 14,019 crores.
As a result, the Earnings Per Share (EPS) for the year ended 31st March 2024 accelerated by 27% to Rs 53.11 per share as against Rs 41.85 per share as at 31st March 2023.
Aided by growth in profits, the Net Worth has grown to Rs 68,783 crores as on 31st March 2024, registering an increase of 19% YoY.
The loan book has maintained its growth trajectory and has increased by 17% to Rs 5.09 lakh crores as against Rs 4.35 lakh crores as at 31st March, 2023.
Signifying improving asset quality, the net credit-impaired assets as at 31st March, 2024 have reduced to 0.86% from 1.01% as at 31st March 2023 with Provision Coverage Ratio of 68.45% on NPA assets, as at 31st March, 2024.
Indicating the ample opportunity to support the future growth, Capital Adequacy Ratio (CRAR) of the company stands at a comfortable 25.82% as at 31st March, 2024.
Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has declared the final dividend of Rs 5 per equity share (on face value of Rs 10/- each) and the total dividend for FY 2023-24 is Rs 16 per equity share.