REC DECLARES QUARTERLY AND FULL YEAR FINANCIAL RESULTS Q4 & 12M FY24 FOR THE QUARTER & YEAR ENDED 31st MARCH 2024.

REPORTS HIGHEST EVER ANNUAL NET PROFIT AT Rs 14,019 CRORES

DECLARES FINAL DIVIDEND OF Rs 5 PER SHARE

MUMBAI, 30th APRIL, 2024 (GPN): The Board of Directors of REC Limited, today approved the audited standalone and consolidated financial results for the quarter & year ended 31st March 2024.

Operational and Financial Highlights: Q4 FY24 vs Q4 FY23 (Standalone)

• Revenue from operations: Rs 12,613 crore vs. Rs 10,113 crores, up 25%

• Total income: Rs 12,643 crore vs. Rs 10,124 crores, up 25%

• Net interest income: Rs 4,407 crore vs. Rs 3,409 crore, up 29%

• Net Profit: Rs 4,016 crore vs. Rs 3,001 crore, up 34%

• Total Comprehensive Income: Rs 5,183 crore vs. Rs 3,645 crore, up 42%

• Yield: 10.03% vs. 9.65%, up 38 bps

• Average cost of funds: 7.14% vs. 7.17%, reduction by 3 bps

• Spread: 2.89% vs. 2.48%, up 41 bps

• Net interest margin: 3.60% vs. 3.29%, up 31 bps

• Return on net worth: 24.06% vs. 21.34%, up 13%

Operational and Financial Highlights: 12M FY24 vs 12M FY23 (Standalone)

• Total sanctions: Rs 3,58,816 crore vs. Rs 2,68,461 crore, up 34%, of which sanctions to renewable sector: Rs 1,36,516 crore vs. Rs 21,554 crore, up 533%

Renewable sanctions comprise of:

• Solar: Rs 20,956 crore vs. Rs 9,301 crore

• Module manufacturing: Rs 21,565 crore vs. ₹ Nil crore

• Large Hydro: Rs 32,450 crore vs. Rs 682 crore

• Pumped Storage: Rs 28,304 crore vs. Rs 6,075 crore

• Green Hydrogen: Rs 7,997 crore vs. Nil

• E-Mobility: Rs 7,214 crore vs. Rs 2,429 crore

• Wind turbine manufacturing: Rs 3,195 crore vs. Nil

• Wind: Rs 3,453 crore vs. Rs 2,436 crore

• Hybrid: Rs 10,098 crore vs. Rs 220 crore

• Others: Rs 1,284 crore vs. Rs 411 crore

• Disbursements: Rs 1,61,462 crore vs. Rs 96,846 crore, up 67%

• Revenue from operations: Rs 47,146 crore vs. Rs 39,208 crores, up 20%

• Total income: Rs 47,214 crore vs. Rs 39,253 crores, up 20%

• Net interest income: Rs 16,167 crore vs. Rs 13,714 crore, up 18%

• Net Profit: Rs 14,019 crore vs. Rs 11,055 crore, up 27%

• Total Comprehensive Income: Rs 15,063 crore vs. Rs 10,084 crore, up 49%

• Yield: 9.99% vs. 9.73%, up 26 bps

• Average cost of funds: 7.13% vs. 7.28%, reduction by 15 bps

• Spread: 2.86% vs. 2.45%, up 41 bps

• Net interest margin: 3.57% vs. 3.38%, up 19 bps

• Return on net worth: 22.17% vs. 20.35%, up 9%

• Market capitalization: Rs 1,18,757 crore vs. Rs 30,400, up 290%

Owing to the improving asset quality and effective resolution of stressed assets, resetting of the lending rates and effective management of Finance Cost, REC is able to record its the highest ever annual profit after tax of Rs 14,019 crore. As a result, the Earnings Per Share (EPS) for the year ended 31st March 2024 accelerated by 27% to ₹ 53.11 per share as against Rs 41.85 per share as at 31st March 2023.

Aided by growth in profits, the Net Worth has grown to Rs 68,783 crores as on 31st March 2024, registering an increase of 19% YoY.

The loan book has maintained its growth trajectory and has increased by 17% to Rs 5.09 lakh crore as against Rs 4.35 lakh crores as at 31st March 2023. Signifying improving asset quality, the net credit-impaired assets as at 31st March 2024 have reduced to 0.86% from 1.01% as at 31st March 2023 with Provision Coverage Ratio of 68.45% on NPA assets, as at 31st March 2024.

Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the Company stands at a comfortable 25.82% as at 31st March 2024.

Continuing with the tradition to reward its shareholders, the Board of Directors of the Company has declared the final dividend of Rs 5 per equity share (on face value of Rs 10/- each) and the total dividend for FY 2023-24 is Rs 16 per equity share.

Last week REC Limited, had successfully availed a SACE-Covered Green Loan for JPY 60.536 Billion to finance Eligible Green Projects in India. This strategic investment reinforces REC’s commitment to foster sustainable growth, in alignment with the Company’s Green Finance Framework.

Commenting on this occasion, Mr. Vivek Kumar Dewangan, IAS, Chairman & Managing Director,  REC said, “The successful transaction in this truly global facility is anticipated to pave way for more such collaborations, further enhancing Indo-Italian business relationships in green energy financing and sustainable projects capabilities, as well as the global community’s support for sustainable development projects in India.”

GPN analysis on REC Q4 Results: State-owned REC Limited, a leader in the Indian power sector, today on Tuesday, 31st April posted a 33 per cent rise in its consolidated net profit to Rs 4,079.09 crore during the March quarter on account of higher income.

The company had clocked a net profit of Rs 3,065.37 crore during the January-March quarter preceding FY 2022-23, REC said in a regulatory filing.

The company’s total income during the fourth quarter rose to Rs 12,706.66 crore from Rs 10,254.63 crore in the year-ago period.

Total expenses were Rs 7,477.18 crore in the March quarter as against Rs 6,353.40 crore.

For the entire FY24, the company’s net profit was Rs 14,145.46 crore, up from Rs 11,166.98 crore in FY23.

The income also rose to Rs 47,571.23 crore in FY24 compared to Rs 39,520.16 crore a year earlier.

REC Ltd, under the Ministry of Power, is a non-banking finance company focusing on power sector financing and development across India.

About REC Limited – 

REC is a ‘Maharatna’ company under the administrative control of the Ministry of Power, Government of India, and is registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC). REC is financing the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pump Storage projects, Green Hydrogen, Green Ammonia projects etc. More recently REC Limited has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc. REC Limited provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country.

REC Limited continues to play a key strategic role in the flagship schemes of the Government for the power sector and has been nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last mile distribution system, 100% village electrification and household electrification in the country. REC has also been made the nodal agency for certain States and Union Territories for the Revamped Distribution Sector Scheme (RDSS). REC has also been given the responsibility of PM Surya Ghar Muft Bijli Yojna from Central Government. The loan book of REC stands at Rs 5.09 lakh crore and Net Worth at Rs. Rs 68,783 crores as on 31 March, 2024. Ends/GPN

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