NEW DELHI: REC Ltd. has announced a significant growth in its financial performance for the first quarter of the fiscal year 2024-25, reporting a consolidated net profit of Rs 3,460.19 crore, marking a 16.57% increase from Rs 2,968.05 crore in the same period last year. This impressive rise in profit is primarily driven by higher revenues, which saw a substantial increase to Rs 13,092.44 crore from Rs 11,108.16 crore year-on-year.
The company’s Net Interest Income (NII) experienced a remarkable surge of 31.5%, reaching Rs 4,479.2 crore, up from Rs 3,406.3 crore in the corresponding period of the previous year. This also represents a 4.8% increase from Rs 4,272.3 crore in the preceding quarter.
Despite the growth, provisions for the quarter were recorded at Rs 472.6 crore, in stark contrast to a provision write-back of Rs 319.5 crore a year ago and a decrease from Rs 711.9 crore in the previous quarter. The Capital to Risk-Weighted Assets Ratio (CRAR) showed an improvement, standing at 27.6%, up from 25.78% year-on-year and 25.82% quarter-on-quarter.
In terms of asset quality, the company reported an improvement in its Gross Non-Performing Assets (GNPA) ratio, which declined to 2.61% from 2.71% in the previous quarter. Similarly, the Net Non-Performing Assets (NNPA) ratio decreased to 0.82%, compared to 0.86% in the last quarter.
The board of directors has also approved an interim dividend of Rs 3.50 per equity share of Rs 10 each for the financial year 2024-25.
Additionally, REC announced the dissolution of Khavda II-D Transmission, a wholly-owned subsidiary of REC Power Development & Consultancy Limited (RECPDCL), under the provisions of the Companies Act 2013. This subsidiary has ceased to be part of RECPDCL and REC.
REC, operating under the Ministry of Power, continues to play a vital role in providing long-term loans and financing to state, central, and private companies for infrastructure development in India.