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State-run REC on Wednesday reported a healthy 33 per cent growth in its consolidated net profit at ₹3,065 crore for the March quarter in FY23 aided by improving asset quality and resolution of stressed assets
On a sequential basis, the company’s net profit rose by 5 per cent from ₹2,915 crore in Q4 FY22.
The Maharatna company’s consolidated total income rose by 6 per cent to ₹10,255 crore during the January-March quarter. On a Q-o-Q basis, income rose by 4.5 per cent.
For the entire FY23, REC’s consolidated net profit rose by 11 per cent to ₹11,167 crore. Its consolidated total income grew marginally to ₹39,520 crore during the year.
“Owing to the improving asset quality and resolution of stressed assets, REC is able to record the highest ever quarterly and yearly profit at ₹3,001 crore and ₹11,055 crore (Standalone), respectively,” REC said.
The company’s Earnings Per Share (EPS) for FY23 stands at ₹41.86 (₹38.02). Aided by growth in profits, the CPSUs net worth has grown to ₹57,680 crore as on March 31, 2023, an increase of 13 per cent Y-o-Y, it added.
REC said that its loan book has maintained the growth trajectory and has increased by 13 per cent to ₹4.35 lakh crore at the end of FY23 as against ₹3.85 lakh crore in the year-ago period.
“Signifying improving asset quality, the net credit-impaired assets have reduced to 1.01 per cent with Provision Coverage Ratio of 70.64 per cent on NPA assets, as on March 31, 2023,” it added.
The Capital Adequacy Ratio stands at a comfortable 25.78 per cent as on March 31, 2023 implying ample opportunity to support the future growth.
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