REC Releases Financial Results for Q4 and 12-Month Period of FY24

 

Mumbai: “REC Limited”, a leading public infrastructure finance company, announced its impressive financial performance for the quarter and year ending March 31, 2024. The Board of Directors approved the audited standalone and consolidated financial results, demonstrating robust growth in both operational and financial metrics.

Key Highlights for Q4 FY24 vs Q4 FY23 (Standalone):

• Revenue from Operations increased by 25%, reaching ₹12,613 crores from ₹10,113 crores.
• Total Income grew by 25% to ₹12,643 crores from ₹10,124 crores.
• Net Interest Income jumped by 29% to ₹4,407 crore from ₹3,409 crore.
• Net Profit surged by 34%, reaching ₹4,016 crore from ₹3,001 crore.
• Total Comprehensive Income saw a 42% increase to ₹5,183 crore from ₹3,645 crore.
• Net Interest Margin improved to 3.60% from 3.29%, an increase of 31 bps.
• Return on Net Worth rose to 24.06% from 21.34%, up 13%.

Key Highlights for 12M FY24 vs 12M FY23 (Standalone):

• Total Sanctions increased by 34% to ₹3,58,816 crore from ₹2,68,461 crore, with a notable increase in renewable sector sanctions.
• Revenue from Operations grew by 20% to ₹47,146 crores from ₹39,208 crores.
• Net Profit increased by 27% to ₹14,019 crore from ₹11,055 crore.
• Net Interest Income rose by 18% to ₹16,167 crore from ₹13,714 crore.
• Yield improved by 26 bps to 9.99%.
• Return on Net Worth increased to 22.17% from 20.35%, up 9%.
• Market Capitalization experienced a substantial rise of 290%, from ₹30,400 crore to ₹1,18,757 crore.

Achievements and Key Metrics:

• 'REC Limited' reported its highest-ever annual profit after tax, totaling ₹14,019 crores. The Earnings Per Share (EPS) for the year ended 31st March 2024 accelerated by 27% to ₹53.11 per share.
• Loan Book maintained a steady growth trajectory, increasing by 17% to ₹5.09 lakh crore from ₹4.35 lakh crore.
• Net Credit-Impaired Assets reduced to 0.86% from 1.01%, demonstrating an improvement in asset quality. The Provision Coverage Ratio on NPA assets is 68.45%.
• Capital Adequacy Ratio (CRAR) stood at a comfortable 25.82%, indicating sufficient opportunity for future growth.
• To reward shareholders, the Board of Directors declared a final dividend of ₹5 per equity share, bringing the total dividend for FY 2023-24 to ₹16 per equity share.

This remarkable financial performance is attributed to improved asset quality, efficient management, effective resolution of stressed assets, and resetting of lending rates, placing REC Limited in a strong position for future growth.