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REC Limited Reports Record-breaking Profits in Q3 and 9M FY24

New Delhi, 23rd January 2024: REC Limited, a leading financial institution, declared its financial results for the third quarter (Q3) and the nine months (9M) ending December 31, 2023. The Board of Directors approved the unaudited standalone and consolidated financial reports, revealing outstanding operational and financial achievements.

**Q3 FY24 Operational and Financial Highlights:**

– **Sanctions:** REC witnessed a remarkable surge in sanctions, reaching ₹1,32,049 crores, up by 177% compared to ₹47,712 crores in Q3 FY23. Notably, the renewable sector constituted 57% of the total sanctions.
– **Disbursements:** REC disbursed ₹46,358 crores in Q3 FY24, a substantial 56% increase from ₹29,639 crores in the same period last fiscal year.
– **Interest Income on Loan Assets:** The interest income on loan assets also grew, rising to ₹11,812 crores, a 22% increase from ₹9,660 crores in Q3 FY23.
– **Net Profit:** REC recorded a net profit of ₹3,269 crores in Q3 FY24, marking a significant 14% increase from ₹2,878 crores in Q3 FY23.

**9M FY24 Operational and Financial Highlights:**

– **Sanctions:** In the first nine months of FY24, REC sanctioned ₹3,25,941 crores, a 69% increase from ₹1,92,496 crores in the same period in FY23. The renewable sector accounted for 39% of the total sanctions.
– **Disbursements:** Disbursements for the 9M period reached ₹1,22,089 crores, showing a robust growth of 104% from ₹59,907 crores in 9M FY23.
– **Interest Income on Loan Assets:** The interest income on loan assets increased to ₹33,490 crores, up 18% from ₹28,456 crores in 9M FY23.
– **Net Profit:** REC achieved its highest-ever 9M profit at ₹10,003 crores, a commendable 24% rise from ₹8,054 crores in 9M FY23.

Owing to improvements in asset quality, increased lending rates, and effective finance cost management, REC’s annualized Earnings Per Share (EPS) for the period ended 31st December 2023 accelerated to ₹50.65 per share, compared to ₹40.79 per share at the end of December 2022.

The company’s Net Worth grew to ₹64,787 crores as of 31st December 2023, reflecting an impressive 18% year-on-year increase. The loan book maintained its growth trajectory, reaching ₹4.97 lakh crore, a 21% increase from ₹4.11 lakh crores as of 31st December 2022.

Indicating improving asset quality, Net Credit-impaired assets reduced to 0.82% from 1.12% as of 31st December 2022. The Provision Coverage Ratio stood at 70.41% on NPA assets as of 31st December 2023.

Highlighting the company’s financial robustness, the Capital Adequacy Ratio (CAR) of REC stands at a comfortable 28.21% as of 31st December 2023, indicating ample opportunities to support future growth initiatives.

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