Maharatna PSU Rural Electrification Corporation (REC) Limited reported a nearly 7% increase in its consolidated net profit, reaching Rs. 4,037.72 crore for the September 2024 quarter, driven primarily by higher income. In the same period last year, the net profit was Rs. 3,789.90 crore, according to a filing with the BSE. Total income rose to Rs. 13,706.31 crore for the quarter, up from Rs. 11,684.89 crore a year earlier.
The board has also approved a second interim dividend of Rs. 4 per equity share of Rs. 10 for the 2024-25 fiscal year, with a record date of November 18. This interim dividend is scheduled to be paid by November 22, 2024.
In a separate announcement, the company stated that growth across all sectors, adjustments in interest rates on loan assets, and effective financial management have allowed REC to sustain its spreads and net interest margins (NIMs), resulting in a half-year profit after tax (PAT) of Rs. 7,448 crore.
Earnings per share (EPS) for the period ending September 30, 2024, rose to Rs. 28.28 (annualized Rs. 56.56), compared to Rs. 25.57 (annualized Rs. 51.14) in September 2023. The company’s net worth has increased to Rs. 72,893 crore as of September 30, 2024, up 15% from Rs. 63,117 crore a year earlier.
The loan portfolio continued its growth, increasing by 15.2% to Rs. 5.46 lakh crore from Rs. 4.74 lakh crore as of September 30, 2023. The net credit-impaired assets declined to 0.88% from 0.96% a year prior, with a provision coverage ratio of 65.12% on non-performing assets (NPA) as of September 30, 2024.
With a robust capital adequacy ratio (CRAR) of 25.31%, the company has significant opportunities for future growth. During the quarter, total loan disbursements reached Rs. 47,303 crore, including Rs. 5,946 crore for the renewable energy sector, representing a 14% increase from Rs. 41,598 crore in the same quarter of FY24.
