Power financier’s net profit surges 27% as clean energy focus pays off
REC Limited has announced its financial results for the fiscal year ending March 31, 2024. The company’s strong performance reflects a strategic shift towards renewable energy and effective management of its loan portfolio.
Profit Soars on Renewables Focus
REC reported a net profit of ₹14,019 crore ($1.8 billion), a significant 27% increase year-over-year. This surge is attributed to improving asset quality, strategic lending rate adjustments, and a growing focus on the renewable energy sector. Notably, sanctions for renewable energy projects surged by a staggering 533%, reaching ₹1,36,516 crore ($17.6 billion) in FY2024. This significant increase highlights REC’s commitment to supporting India’s clean energy transition.
Financial Highlights Strengthen
The company’s financial health also saw a significant boost. Revenue from operations grew 20% to ₹47,146 crore ($6.1 billion), and net interest income rose 18% to ₹16,167 crore ($2.1 billion). Additionally, the net worth climbed 19% year-over-year to ₹68,783 crore ($8.8 billion). These positive indicators demonstrate REC’s strong financial standing.
Loan Portfolio Grows with Improved Quality
REC’s loan book maintained a healthy growth trajectory, expanding by 17% to reach ₹5.09 lakh crore ($65.6 billion) in FY2024. Furthermore, the company reported a decline in net credit-impaired assets, signifying improved asset quality. The provision coverage ratio on non-performing assets also increased, indicating REC’s proactive approach to managing potential loan defaults.
Rewarding Shareholders
Continuing its commitment to shareholder value, REC declared a final dividend of ₹5 per equity share, bringing the total dividend for FY2023-24 to ₹16 per share.
Looking Ahead: A Bright Future for REC
REC’s robust financial performance and strategic focus on renewables position the company for continued success. With a comfortable Capital Adequacy Ratio of 25.82%, REC is well-equipped to support the burgeoning Indian renewable energy sector and contribute to the nation’s clean energy goals.