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Power sector lender REC on Tuesday reported a 23 per cent y-o-y growth in its consolidated net profit at ₹3,308.42 crore for the October-December quarter of the current fiscal.
However, the state-run firm’s net profit declined by almost 13 per cent on a sequential basis.
REC’s consolidated total income during the December quarter was higher at ₹12,071.54 crore compared to ₹11,701.26 crore in Q2 FY24 and ₹9,795.47 crore in Q3 FY23.
“During the quarter, three stressed assets have been resolved with an outstanding loan amounting to ₹1,080.63 crore and after adjusting Expected Credit Loss (ECL) of ₹531.50 crore and recoveries of ₹580.61 crore, an amount of ₹31.48 crore has been written back,” REC said in its results filing with BSE.
On a standalone basis, REC’s net profit rose by 14 per cent y-o-y to ₹3,269 crore. Its loan sanctions rose by a whopping 177 per cent y-o-y to ₹1,32,049 crore against ₹47,712 crore. Renewable sector accounted for 57 per cent of the total sanctions.
The disbursements during Q3 FY24 stood at ₹46,358 crore against ₹29,639 crore in Q3 FY23, while interest income on loan assets stood at ₹11,812 crore compared to ₹9,660 crore.
“Owing to the improving asset quality, increase in lending rates and effective management of finance cost, REC is able to record its highest ever 9M profit of ₹10,003 crore. As a result, the annualised Earnings Per Share (EPS) for the period ended December 31, 2023 accelerated to ₹50.65 per share as against ₹40.79 per share as at December 31, 2022,” REC said in a statement.
Aided by growth in profits, the net worth has grown to ₹64,787 crore in Q3 FY23, which is an increase of 18 per cent on an annual basis.
The loan book has maintained its growth trajectory and has increased by 21 per cent y-o-y to ₹4.97 lakh crore in Q3 FY24 as against ₹4.11 lakh crore in Q3 FY23.
Signifying improving asset quality, the net credit-impaired assets have reduced to 0.82 per cent from 1.12 per cent as at December 31, 2022 with provision coverage ratio of 70.41 per cent on NPA assets, as at December 31, 2023.
Indicating the ample opportunity to support the future growth, the Capital Adequacy Ratio (CRAR) of the company stands at a comfortable 28.21 per cent as of December 2023.
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