The Board of Directors of the Maharatna PSU Rural Electrification Corporation (REC) Limited has approved the limited review of the standalone and consolidated financial results for the half-year ending September 30th, 2024. Due to growth across all sectors, the adjustment of interest rates on loan assets, and effective management of finance costs, REC has successfully maintained its spreads and net interest margins, resulting in a strong half-year profit after tax of Rs. 7,448 crore. Consequently, the Earnings Per Share (EPS) for the period ended September 30, 2024, has risen to Rs. 28.28 (annualized at Rs. 56.56), compared to Rs. 25.57 (annualized at Rs. 51.14) for the same period in 2023.
The loan book, or Assets Under Management (AUM), has continued its upward trend, growing by 15.2% to Rs. 5.46 lakh crore, up from Rs. 4.74 lakh crore as of September 30, 2023. The net credit-impaired assets have decreased to 0.88% from 0.96% as of September 30, 2023, with a Provision Coverage Ratio of 65.12% on non-performing assets (NPA) as of the same date.
Supported by profit growth, the Net Worth has increased to Rs. 72,893 crore as of September 30, 2024, from Rs. 63,117 crore on September 30, 2023, reflecting a 15% year-over-year growth. The company’s Capital Adequacy Ratio (CRAR) remains strong at 25.31% as of September 30, 2024, indicating significant capacity for future growth. In line with its commitment to rewarding shareholders, the Board has declared a second interim dividend of Rs. 4.00 per equity share (with a face value of Rs. 10 each).