REC Q1 Net Profit Surges 16.57% to Rs 3,460 Cr, Loan Book Hits Rs 5.30 Lakh Cr

New Delhi, Jul 27 (PTI) State-owned REC on Saturday posted a 16.57 per cent rise in consolidated net profit to Rs 3,460.19 crore for the June quarter mainly on the back of higher revenues.

In the year-ago period, its net profit stood at Rs 2,968.05 crore, the company said in an exchange filing.

Total income rose to Rs 13,092.44 crore from Rs 11,108.16 crore in the same period a year ago. Expenses stood at Rs 8,743.22 crore against Rs 7,386.99 crore a year ago.

The board of directors also approved an interim dividend of Rs 3.50 per equity share of Rs 10 each for the financial year 2024-25.

"The Board has also taken note of striking off the name of Khavda II-D Transmission a wholly-owned subsidiary company of REC Power Development & Consultancy Limited ("RECPDCL"), a wholly-owned subsidiary of REC, from the Registrar of the Companies,' the filing said.

The company stands dissolved and ceased to be the subsidiary of RECPDCL & REC in terms of provisions of the Companies Act. 2013, it said.

The company was able to maintain healthy numbers "owing to growth in all the verticals, resetting of interest rates on loan assets and effective management of finance cost," its Chairman and Managing Director (CMD) Vivek Kumar Dewangan said in a post-earnings interaction.

He said the earnings per share (EPS) for the period ended June 2024 accelerated by 16 per cent to Rs 13.07 per share from Rs 11.24 per share as of June 2023.

The net worth of the company rose 19 per cent year on year to Rs 72,351 crores as of 30th June 2024, aided by growth in profits.

The loan book maintained its growth trajectory, increasing by 17 per cent on a sustained basis to Rs 5.30 lakh crore as against Rs 4.54 lakh crores in April-June 2023.

The net credit-impaired assets as of 30th June 2024 have reduced to 0.82 per cent from 0.97 per cent as of 30th June 2023 with a Provision Coverage Ratio of 68.48 per cent on NPA assets, as of 30th June 2024.

REC, under the Ministry of Power, provides long-term loans and financing to state, Centre and private companies for the creation of infrastructure assets in the country.