REC Q2 Results: Net profit grows 7% to Rs 4,037 crore

State-owned REC Ltd on Saturday posted around 7 per cent rise in its consolidated net profit to Rs 4,037.72 crore for the September 2024 quarter, mainly on the back of higher income.

Its consolidated net profit stood at Rs 3,789.90 crore in the quarter ended September 2023, a BSE filing showed.

The total income rose to Rs 13,706.31 crore in the quarter under review from Rs 11,684.89 crore a year ago.

The board also approved the second interim dividend of Rs 4 per equity share of Rs 10 each for 2024-25. The record date for the interim dividend is November 18.

The interim dividend will be paid on or before November 22, 2024.

In a separate statement, the company said, "Owing to growth in all the verticals, resetting of interest rates on loan assets and effective management of finance cost, REC is able to maintain its spreads and NIMs (Net Interest Margin) resulting in H1 PAT of Rs 7,448 crore".

The earnings per share (EPS) for the period ended September 30, 2024, accelerated to Rs 28.28 per share (annualised Rs 56.56) per share against Rs 25.57 per share (annualised Rs 51.14) as of September 2023.

Its net worth has grown to Rs 72,893 crore as of September 30, 2024, compared to Rs 63,117 crore as of September 30, 2023, registering an increase of 15 per cent year-on-year.

The loan book has maintained its growth trajectory and increased by 15.2 per cent to Rs 5.46 lakh crore from Rs 4.74 lakh crore as of September 30, 2023.

The net credit-impaired assets reduced to 0.88 per cent from 0.96 per cent a year ago, with a provision coverage ratio of 65.12 per cent on NPA assets as of September 30, 2024.

Indicating ample opportunity to support future growth, its capital adequacy ratio (CRAR) stands at 25.31 per cent.

During the quarter, loan disbursement stood at Rs 47,303 crore, of which Rs 5,946 crore was towards the renewable energy sector.

The overall disbursement was 14 per cent higher than Rs 41,598 crore in the September quarter of FY24.